The Cape Cod real estate market is showing signs of returning to normal, according to a new report from the Cape Cod & Islands Association of Realtors.
The report notes that the year-long frenzy of buyers relocating to Cape Cod has started to let up as the market is showing signs of returning to pre-pandemic levels, altering the housing landscape for the foreseeable future.
July sales dropped 39% from last year while pending sales decreased 37% from a year prior.
When compared to 2019, July sales were slightly up, and pending sales were slightly down, indicating a possible return to a more normal market, the report found.
Though there are signs of normalizing, supply and demand issues continue just as they are throughout the Bay State, as available Cape Cod home inventory was down 51% from the previous year while the median sales price rose 20%.
“Inventory hasn’t rebounded and prices haven’t subsided, but market activity is slowing, which shows it may be the last chance for sellers to take advantage of a frenzy home buyer market and list now,” said CCIAR CEO Ryan Castle.
List prices caught up with accepted offer prices last month, the first time the percentage of closed sales had a sales price higher than the asking price, another indicator of the market returning to normal. Of homes sold in July, 61% closed above the asking price compared to June’s 65% high.
July saw sales of 358 single-family homes and 95 condominiums compared to July 2020, which had 590 homes and 112 condominiums. The median sales price for a single-family home in July was $600,000, compared to $496,500 a year prior and $395,000 for condominiums, which was $338,500 in 2020.
In July, there were 380 pending single-family home sales and 106 pending condo sales, a 37.6% and 30.3% decrease, respectively.
Days on market also dropped in July from last year, down 79.2% for single-family homes, to 22 days from 106. Condominium days on market dropped 60% to 46 days from 115 days in July 2020.