MARTHA’S VINEYARD 2022 MID-YEAR REAL ESTATE MARKET REPORT
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The Martha’s Vineyard real estate market slowed in the first half of 2022. The number of transactions decreased 32% from 329 transactions in the first half of 2021 to 224 transactions in the first half of 2022. Dollar volume was down 25% from $556mm in the first half of 2021 to $416mm in the first half of 2022. However, average price rose 10% from $1.690mm for the first half of 2021 to $1.857mm for the first half of 2022. .
Historically speaking, 224 sales for the first half of the year is a solid performance and comparable to the first half of 2020 which had 222 sales and the first half of 2019 which had 219. It’s worth noting that the dollar volume in the first half of 2022 is 38% higher than the first half of 2020 with a similar number of sales, meaning prices have climbed significantly
All six towns posted decreases in the number of transactions in the first half of 2022, and all towns except Chilmark posted decreases in dollar volume. In Chilmark, despite the number of transactions falling from 21 in the first half of 2021 to 10 in the first half of 2022, dollar volume increased 25% due to the type of sales that occurred in the first half of 2022, which were all houses including a $9,025,000 transaction, versus several land sales in the first half of 2021 including beach lots. West Tisbury was the most insulated from the changes with a 9% drop in both the number of transactions and dollar volume. From the first half of 2021 to the first half of 2022, the rest of the towns on the island experienced double digit decreases in the number of transactions and dollar volume: Aquinnah down 54% and 57% respectively, Edgartown down 32% and 33%, Oak Bluffs down 36% and 30% and Tisbury down 30% and 27%.
In the last month, inventory of properties has shifted up slightly but still remains at an historically low level. The inventory level at mid-year 2022 was 196 properties, higher than the inventory at mid-year 2021 which was 157, but still significantly lower than 2020 which was 396 properties.
What has caused this mild increase in mid-year inventory? At this time, we can only speculate. The uptick in inventory may reveal a buyer pushback on pricing, as some properties linger on the market a little longer due to aggressive pricing and higher interest rates. The uptick in inventory may also indicate that sellers are starting to see this as a good time to sell rather than holding out for real estate prices to rise further in an uncertain economy. However, it’s also worth noting that many properties are selling quickly without ever coming to the market and bidding wars continue to be common in market niches where inventory is too low to meet the strong demand.
Mid-year last year, the real estate boom on the island was in full swing. The mixed activity at the midpoint in 2022 may signal the start of a shift in the market dynamics but it is too early to know. Currently, the market remains strong for Sellers and challenging for Buyers evidenced by higher prices and continued low inventory.
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