Holding Steady
In Cape Cod and Southern Maine, luxury values are stable, helped in some areas by increased interest in in-town properties.
By Rick DandesEncouraged by renewed buyer interest and an increase in the number of real estate transactions in 2010, market experts on Cape Cod and Maine’s coastline say that home prices have stabilized and may rise later this year.
“Our luxury market has held up,” says Chris Rhinesmith, owner of Pine Acres Realty, in Chatham, Mass., a scenic seaside town located at the southeast tip of Cape Cod. “Despite the recession, we had the best year we ever had in 2009. And so far in 2010, interest level is up and demand is up, so we’re optimistic.”
Rhinesmith attributes the buyer interest in Chatham to the relative value of properties in a picture-postcard location. To the east of Chatham is the Atlantic Ocean, to the south, Nantucket Sound, and to the north, Pleasant Bay. Major geographic features of Chatham are hilly, wooded uplands, extensive barrier beaches and spits, harbors, numerous small estuaries, and salt and freshwater ponds.
“We tend to draw buyers that would be looking for homes on Martha’s Vineyard and Nantucket islands. On the Vineyard and Nantucket, home prices are out of sight. In Chatham, you get a lot more for your money.”
Luxury properties on the beachfront in Chatham range from $5 million to $7 million; similar estate homes on the Vineyard or Nantucket would cost $10 million to $12 million.
In-town locations are becoming popular on the Cape, Rhinesmith says. “People who have second homes can come for the weekend, park a car and walk everywhere. Chatham has a dynamic downtown, and people from surrounding towns come to our shops and restaurants.”
Real estate prices in the quiet village of Osterville, about 27 miles west of Chatham, also have stabilized, says Alice “Sherry” Mattison, owner of Alice Mattison and Company. “We don’t have a lot of activity here, but we do have sales,” she says.
“People are opportunistic. Many buyers feel like we’ve hit a market low and we’re going to be back on the upswing soon. They don’t want to catch prices when they are rising. I think we’ll have a good summer, although not anywhere near what we used to.”
Mattison agrees with Rhinesmith that there is growing interest in homes that are not necessarily on the water. “Sure, people will always want access to the beach,” she says, “but I’ve noticed that people like being in-town, where you can walk to dinner or bike to clubs.”
Luxury homes in the Osterman area start at $1 million, Mattison says, “but we can go as high as $20 million for estates on the waterfront.”
Business has also picked up on the southern Maine coastline, says Claudette Pittman, a broker with Kennebunk Beach Realty, in Kennebunk. “Our buyers are looking for water views and beach access,” Pittman explains. Kennebunkport is known for its spectacular scenery, lovely oceanfront homes and picturesque harbor.
Luxury homes range from about $1 million for homes within walking distance of the beach to $4.75 million estates on the coastline. “A trend is to buy older homes and renovate,” Pittman notes.
Pittman believes the increase in buyer interest is related to investor psychology. “They are feeling the time to buy is now, after all we have been through last year. Our inventory of available luxury homes is depleted. For that reason, I think we’ll start to see prices start to climb again.”
[...] Holding Steady In Cape Cod and Southern Maine, luxury values are stable, helped in some areas by increased interest in in-town properties. By Lauren Varga [...]
[...] Holding Steady In Cape Cod and Southern Maine, luxury values are stable, helped in some areas by increased interest in in-town properties. By Rick Dandes [...]