What's happening in the MV Real Estate Market?
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The Martha’s Vineyard real estate market continued to slow down in the first half of 2023. The number of transactions decreased 22% from 224 transactions in the first half of 2022 to 174 transactions in the first half of 2023. Dollar volume was down 14% from $416mm in the first half of 2022 to $359mm in the first half of 2023. However, average price rose 11% from $1.857mm for the first half of 2022 to $2.061mm for the first half of 2023.
Historically speaking, 174 sales is the lowest number of transactions in the past decade, for the first half of the year. It’s worth noting that although first half dollar volume declined the last two years, the dollar volume in the first half of 2023 is 20% higher than the first half of 2020 (which had more sales - 222 transactions).
All of this highlights that prices have climbed significantly during the COVID years.
ACROSS THE ISLAND ..
All towns posted decreases in the number of transactions in the first half of 2023 except Aquinnah which increased by one sale from 5 to 6 transactions.
Chilmark, which has suffered from extremely low inventory, was the most dramatically impacted in the first half of 2023. All towns except Aquinnah posted decreases in, or flat, dollar volume from the first half of 2022 to the first half of 2023.
Aquinnah’s dollar volume grew 143% to $12.6mm and Oak Bluffs’ dollar volume remained flat at $50.1mm despite a 26% drop in the number of transactions.
From the first half of 2022 to the first half of 2023, the rest of the towns on the island experienced decreases in the number of transactions and dollar volume:
- Chilmark down 40% (number of transactions) and 72% ( $ volume)
- Edgartown down 32% (transactions) and 8% ($ volume)
- Tisbury down 8% (transactions) and 10% ( $ volume)
- West Tisbury down 14% (transactions) and 21%.($ Volume)
Inventory of properties remains at an historically low level, for the third year in a row. The inventory level at mid-year 2023 was 186 properties, slightly lower than at mid-year 2022 which was 196 properties, and slightly higher than the inventory at mid-year 2021 which was 157. But all of these mid-year inventory levels are significantly lower than 2020 which was 396 properties.
At mid-year 2022, we speculated that the slower activity at that point may signal the start of a shift in the market dynamics. Now, a year later at mid-year 2023, we are experiencing the same forces – low inventory, fewer sales, higher prices. If the market is shifting, it’s doing so very slowly as demand seems to be holding steady. Currently, the market remains strong for Sellers and challenging for Buyers evidenced by higher prices and continued low inventory.