Page 4 - Luxury Market Report 2019
P. 4

Island Summary






                 After a very slow start to the year, island wide single-family home sales
          held up fairly well in 2018, posting just a slight decline of 2.3% after 4-years of
          moderately strong gains. The sales decline was negligible (-0.6%) in the luxury
          market (homes priced greater than $900K), compared to a larger decline (-2.8%) in
          homes priced below that. Low inventory of homes for sale, plus changes in tax laws
          and gradually rising interest rates offset strong gains in the economy, employment
          and consumer confidence.

                 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 small decline in sales of  luxury
          homes sold on the island, was accompanied by a modest decline in average price,
          in contrast to a moderately strong gain (+9.8%) in median prices, and a large
          73 day decline in days on market to just 6-months.

                   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.

                 The outlook for 2019 calls for a roughly similar year — with luxury market
          sales holding roughly steady or down slightly, prices steady or down slightly and
          days on market holding at 6-months.


                                                                                                              Ocean Park Oak Bluffs, Victorian, water views,
                                                                                                                                   sold for $2.2M
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