The increasing inventory on Cape Cod and the islands is fostering optimism within the market, signaling positive signs as the spring season begins, according to a new report from the Cape Cod & Islands Association of Realtors (CCIAOR).

Both new home listings and condo listings had double-digit growth in February. 

By month’s end, 422 single-family homes and 120 condominiums were listed for sale in the Cape Cod & Islands Multiple Listing Service. That’s a 21.6% increase in single-family home listings and a 13.2% increase in condo listings from February 2023.

Ryan Castle, CEO of the Cape Cod & Islands Association of Realtors, said the increase in new listings is a positive sign that “has us feeling cautiously optimistic for the market this year.”

“Higher mortgage rates and historically low inventory will likely continue to keep potential sellers in their homes for some time, which would temper the overall number of listings coming onto the market,” he said. “Overall, we have been waiting for positive signs in the market and this is certainly one of them.” 

Sales also improved. 

In February, 195 homes sold on the Cape, including 147 single-family homes and 48 condominiums, at median prices of $717,000 and $417,500, respectively. A year ago, 157 single-family homes and 35 condos sold at median prices of $661,000 and $400,000.

Meanwhile, pending home sales rose in February, while condominium sales fell. 

Pending sales for single-family homes increased 9.6% from last year to 205 while pending condominium sales fell 16.4% to 56. In February 2023, there were 187 pending single-family homes and 67 pending condominiums.

“In a real estate market like this, it’s important to have expert agent representation,” Castle said. “Buyers and sellers need a professional on their side to navigate this market when making a significant decision to invest in a new home or sell their current one.”

Homes are not staying on the market long. 

Average days on market for single-family homes fell to 50, down from 65 a year prior. Condominium days on market also fell, down from 57 to 50.