Government Shutdown Led to Lower Closed Sales Total in January 2019
New listings increased 23.9%; pending sales numbers are also on the rise
WEST YARMOUTH, MA—According to preliminary data released last week by the Cape Cod & Islands Association of REALTORS® (CCIAOR), 267 homes sold in January, 229 single-family homes and 38 condominiums. Median sales price was $395,000 for single-family homes and $270,000 for condominiums. Last January, 326 homes (260 single-family homes and 66 condos) sold at a median price of $406,500 for single-family homes and $241,250 for
Sales pending at the end of January were 212 for single-family homes and 47 for condominiums – a 8.2 percent increase for single-family and a 24.2 percent decrease for condominiums, which will show up in closed home sales in the coming months. Last January, there were 196 pending single-family homes and 62 pending condominiums.
The drop in closed sales likely reflects the impact that the federal government shutdown had on home sales, with buyers and sellers not being able to verify or get tax documents, causing delays in closings and in the processing of some loans. The ‘midmarket’ segment – $500,000-$999,999 – was the hardest hit by the shutdown, with the percentage of market volume dropping 10% to 20% when compared to January 2018. The $1,000,000+ market was unaffected, jumping to 12% from 5%, reflecting the Cape’s continuing status as a premier luxury destination.
New listings in January for single-family homes were 171, and 47 for condominiums. This is a 23.9 percent increase, and a 6.8 percent increase respectively, from last January, which had 138 new listings for single-family homes and 44 new listings for condominiums.
“2019 is off to an interesting start for Cape Cod real estate. Activity continues to be consistent for housing at all price points. The spring market will tell if the market activity blip is here to stay, or if it was a reflection of instability in the market caused by the prolonged government shut down and buyers inability and delays in accessing tax returns and some housing programs along with consumer confidence. A continuing environment with favorable interest rates is helping to keep market activity moving at a steady pace.” said Joe Arnao, President of the Cape Cod & Islands Association of REALTORS.
Cumulative days on market for January increased 6.7 percent for single-family homes compared to last January, rising from 105 days to 112 days. Condominiums saw cumulative days on market decrease compared to last January, falling from 127 days to 121 days, a 4.7 percent decrease.
Data released reflects all residential and condominiums in the Cape Cod & Islands Multiple Listing Service for Barnstable County.
For town-by-town reports and historic data please visit CapeCodRealEstateStats.com