Page 4 - Luxury Market Report 2018
P. 4

Island Summary

                 Despite strong gains in the economy, employment and consumer
          confidence, low inventory, recent changes in tax laws and gradually rising
          interest rates have resulted in a 17.1% decline in luxury (>$900K) single
          family home sales during the first nine months of 2018, compared to year-ago
          levels. This follows a 9.9% increase in luxury sales last year and four years of
          moderately strong growth in the island luxury real estate market.

                 Shifting demographic profiles, a strengthening economy and strong
          home buyer demand over the last 4-years have had a profound impact on
          the island luxury real estate market. Last year’s growth in sales of  luxury
          homes sold on the island, was accompanied by modest increases in average
          and median prices, up 10.7% and 3.3% respectively.  The total of all
          single family home sales on the island were up 1.2% in 2017, with the
          luxury component accounting for approximately 42%  of all sales.

                   While older-skewing demographics continue to attract cash buyers looking
          to purchase second or third vacation homes, one of the new primary factors
          driving growth across the island luxury real estate market is the evolving profile
           of the luxury home buyer. Decades ago, Baby Boomers sought large mansions
          that offered privacy and unobstructed coastline views. In contrast, today’s luxury
          buyers – often older Millennials and young Gen Xers – are motivated by
          unostentatious yet modern homes that are of equal distance to uninhibited
          seacoast and downtown amenities; in short, access is displacing opulence when
          it comes to defining a luxury listing on Martha’s Vineyard. This desire to be
          close to conveniences like restaurants and shops has led to large percentage
          increases in single family homes sold year-over-year in areas such as Edgartown,
          Oak Bluffs and Vineyard Haven. Though diverse in geography and landscape,
          each of these towns offer the ease of accessibility that today’s luxury home
          buyer’s expect.

                    Looking ahead to the coming months, robust economic and real estate
          trends as well as broker feedback suggests that increased confidence in the
          economy – combined with low inventory of properties, and strong demand
          for newly-constructed properties – will continue to facilitate slow to moderate
          growth in the Martha’s Vineyard luxury real estate market.
                                                                                                              Ocean Park Oak Bluffs, Victorian, water views,
                                                                                                                                   sold for $2.2M
   1   2   3   4   5   6   7   8   9