With its scenic coastlines, charming harbors, and world-famous lighthouses, Cape Cod embodies the essence of iconic waterfront living on the East Coast. Here, we highlight Cape Cod’s latest real estate market insights with Eric Rollo, Managing Partner of The Agency Cape Cod and The Agency Boston. Eric shares details on the area’s most sought-after neighborhoods, what’s attracting new residents now, market trends, must-have amenities for today’s buyers, and more.
What specific neighborhoods in Cape Cod are attracting buyers most right now?
Falmouth, Cataumet, Chatham, Provincetown, and the villages of Bourne have all been highly sought after of late.
What do you think is attracting buyers to these areas?
Access to entertainment, dining and beaches. Location is key, and buyers are, logically, attracted to areas where there is available inventory. The neighborhoods mentioned earlier are very appealing, as well as Provincetown, which is desirable for its vibrant culture, art community and diverse dining options.
How have these areas evolved over the last few years since the pandemic, and what are buyers seeking in local luxury homes now?
As more and more people have transitioned to remote or hybrid work, the number of people relocating permanently to the Cape has increased since the pandemic. We have also seen a shift in buyers being more tolerant of living in areas that require flood insurance, which was a point of hesitation in the past, simply to be able to enjoy everything that Cape Cod has to offer for both families and empty-nesters alike.
The entire northeast provides a constant pipeline of buyers and renters. However, in the last 18 months we have seen a larger influx from downtown NYC and the West Coast, specifically Seattle and Northern California.
Is there a season to the real estate market in these areas or are buyers flocking year-round?
The summer months are very popular, however, more and more families and individuals are seeking year-round properties on Cape Cod, specifically in the Mid- and Upper-Cape regions.
What are some home amenities or features that you see buyers seek out right now?
Home offices are a must for most. Even for retired buyers, as family and friends visit it is increasingly common for people to work from home. Outdoor entertainment spaces and outdoor kitchens have also been in demand with our buyers of late, and prove a worthwhile investment for sellers seeking to make improvements for long-term value adds. In addition, more and more individuals are looking for open-concept spaces and a seamless flow from their entertaining spaces both indoors and out.
Have you seen any increase in home buyers or renters from a certain region?
The entire northeast provides a constant pipeline of buyers and renters, however, in the last 18 months we have seen a larger influx from downtown NYC and the West Coast, specifically Seattle and Northern California.
Home offices are a must for most. Even for retired buyers, as family and friends visit it is increasingly common for people to work from home.
Are there any emerging developments in these regions that you foresee buyers being drawn to?
With the lack of buildable land and the constant threat of beach erosion, new development is very rare on Cape Cod.
Buyers looking for luxury homes often flock to New Seabury, a luxury development, which has high-end finishes and is convenient to the water as well as local amenities— but it does feel quite exclusive.
Many of our buyers who don’t want to be “over the bridge” take advantage of planned communities such as Red Brook or Pine Hills in Plymouth, on the mainland that offer access to many conveniences.
Do you have any stats or data about the Cape Cod market over the past year that are notable?
According to the Cape Cod and Islands Association of Realtors, year over year from 2022 to 2023 inventory, sales, and closings were all down in double digits: New Listings were down 15.9%, Pending Sales were down 15.1% and closed sales were down 18.1%.
The average sale price was up to $904,214 which is up 4.1% year over year, and continues to rise during 2024.
While inventory was at its second lowest in 5 years, months of supply sat at 1.8, indicating a hot seller’s market due to the lack of inventory overall.
New Listings were up 12.1% for single-family homes and 38.2% for condominium properties. Closed Sales decreased 5.4% for single-family homes but increased 11.6% for condominium properties in June of 2024, an indication that there might be some relief for buyers moving forward throughout the rest of the year.
To illustrate this, for single-family homes the average months of supply was up almost 43% when comparing June 2023 to 2024, indicating that the existing inventory would not be exhausted for about 3 months if no other homes became available on the market during that period. Homes are sitting a bit longer than the year prior as well, as the cumulative days on market for single-family homes sits at about 46% year-to-date in 2024. New listings are also up over 24% year-over-year YTD in 2024.
Is there any particular advice you have been giving buyers most often these days regarding buying a home in Cape Cod?
Be patient and explore the different communities and villages before making a decision. Each area provides its own unique charm and character, and with the lack of inventory, we advise our buyers not to settle. In my experience, fall —not summer— is often the best time to look for homes down the Cape.
Also, don’t be afraid to look at homes at the lower end of your desired price range. Oftentimes homes on Cape Cod have been in the same family for many generations. Don’t be afraid to look at homes that would benefit from upgrades to find a place with great bones that you can customize and make your own.
For more insight into current market trends and the world’s most dynamic real estate destinations, browse our other recent In the Knows: Why Buyers Love Steamboat Springs, Colorado, NorCal Real Estate Market, Santa Barbara & Montecito Real Estate Insights from Eric Haskell, The Rise of Lake Town Real Estate in Tahoe & Beyond, and Today’s Golf Course Home Market, Palm Beach to Palm Springs.
