Unique Homes Blog

“If you wait until everyone says it’s the bottom, it’s too late.”

The most prevalent sound along the shores of Cape Cod and Nantucket might not be the surf, but opportunity knocking. The question is for how long?

“If you wait until everyone says it’s the bottom, it’s too late,” says Carolyn Durand, broker and vice president of Lee Real Estate on Nantucket. “Some buyers know if they can get a really quality piece of property for a price that is 20-percent off its peak, it’s a good deal. But there is still a lot of inventory out there and opportunities for people. It’s supply and demand.”

Like most second-home markets, Cape Cod and Nantucket were not spared from the economic downturn over the past 18 months. According to the National Association of Realtors, vacation home sales across the country in 2008 fell nearly 31 percent compared to 2007.

But with spring arrived hope, along with signs of life from Wall Street.

“I think ‘turnaround’ would be too strong, but there is some activity out there,” says Paul Grover, owner/partner of Robert Paul Properties on Cape Cod. “The people who are the bravest, who recognize there is good opportunity, those are the ones that are moving right now. We’ve had some sales where people on the sidelines were very surprised. They were waiting for that house and thought it would go lower, and someone snapped it up.”

According to the Cape Cod & Islands MLS, sales of more than $1 million dropped to 215 in 2008, compared to 292 in 2007. Through the first quarter of 2009, there were 24 sales of $1 million or more, down from 59 in the first quarter of 2008 and 50 in the opening quarter of 2007.

“The real high end hasn’t been as busy as we’d like to see it, but hopefully that will turn around soon,” says Dick Martin, principal of ERA Cape Real Estate. “A lot of it is tied in directly to the stock market; when it’s volatile, people decide it’s time to wait. With summer on the way and the better psyche in general that seems to be out there, I think we’re going to see a gradual increase in the foreseeable future.”

Although sales on Nantucket have dropped since their heyday in 2004, the average home price continued to hover near $2.5 million until dipping during the first quarter of 2009. Median prices fell by 7 percent over the last year.

Buyers on Nantucket are drawn by the 82 miles of public beaches, historic streets — English colonists arrived in 1659 — and landscape. The year-round population is 10,000 residents, but swells to more than 50,000 during the summer, although conservation and zoning regulations help the island retain its charm.

“People come back year after year and eventually realize this is where they want to have their summer home,” says Durand. “Some of it is when the timing is right for them, but you’d be surprised how many people come to the island and leap frog to try different areas.

“There are some iconic locations here where you just think ‘wow’ that’s phenomenal. It’s a summer place, but there is great fall foliage. Our September weather is the best weather we have all year long.”

Cape Cod features 115 beaches along 560 miles of coastline.

“It’s all about the water here; proximity to water, or a property with a dock or easy access to a marina,” says Grover. “People like to be within walking distance to amenities or shops or things like that. Even though that’s desirable in a primary residence, it seems it might be even more desirable in the market we work in.”

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