Cape Cod or The Cape is a dreamy vacation paradise with its natural beauty, excellent golfing sites, and outstanding beaches for surfing, swimming, and sailing. It is also one of the best places for seal and whale watching as well as for other outdoor activities like biking and hiking. With all these features, it is no wonder why Cape Cod is a favorite choice for people searching for a vacation home or rental properties.
There are plenty of choices in the area from single family homes to apartments. However, what Cape Cod is really known for are its luxury properties. Most of them offer waterfront views that effortlessly present the beauty of the resort island.
Luxury properties, especially condominiums are all around Cape Cod. Some are very pricey considering that the home value index in the area is $392,900. Compared to the same period last year, the percentage is almost a five percent change. With this trend, it is expected that Cape Cod will continue to rise in home prices for a little over four percent.
Although the real estate market remains cool toward sellers, Cape Cod still offers a great way to earn from investments. The price per square foot at the current time is $297, which remains higher than the state average of $242. However, the rent prices in Cape Cod are lower compared to Massachusetts average, which is $2,500 (versus $1,900).
Although this is the case, there are many condominiums for rent and for sale that have grabbed the attention of renters and buyers. Not only are they rich in features and amenities, but their prices can make anyone’s head spin.
Real Estate Market Report from 2016 to 2017
Cape Cod was hit by a little bit of financial crisis over the past few years. However, the peninsula has started to recover. The evidence is in its stable real estate market. The stabilizing economy has helped the place to become a favorite destination, especially for those looking for great residential options.
The positive interest rates as well as the flexible mortgage choices result in an increase of about 15% in 2016 when it comes to home prices and sales. In fact, home sales are up, regardless of the price points. Although the number of sales did not exceed the peak of the market back in 2000 where there were almost 3,000 homes sold in just the first half of the year, it is clear that the recovery of the island is quite impressive.
Since the great recession, the median prices of homes have continued to grow. The lowest ever recorded was $299.000, which was way back in 2009. In 2016, the median price rose to $348,500, which was over 16% from the 2009 low. Meanwhile, 2005 remains as the peak year for the high rates of homes for sale in Cape Cod, which was $368,000.
As for the entry-level and the midlevel markets, they experienced stable appreciation in values. However, last year, the luxury market declined by seven percent, although the home sales are still at least $1 million. The $1 million to $2 million home sales were actually the sweet spot for the real estate market last year due to almost 45% increase in prices and sales.
It is a different scene this year though, particularly for the luxury market. Instead of falling as it did for the last two years, it has experienced significant growth. The first half of 2017 had a surge in sales where properties cost at least $1 million. Year over year sales also improved with more than 11% increase and the median price moved up to almost two percent.
It seems like 2017 is a great year for the luxury market, and the trend will much likely continue until next year. This year is also record-breaking because of the number of homes sold and the home sales with prices that are over $10 million.
Luxury Properties in Focus
With the renewed energy in the luxury market, more and more expensive properties, especially condos seem to appear in several listings, either for sale or for rent. Some are quite notable for specific reasons.
here are literally hundreds of condos available on the Cape Cod market but some way beyond the prices of other properties. In 2014, more than 20 of the condominiums asked for more than a million dollars. Also in the same year, there were two listings asking for over $2 million. These two properties’ hefty prices did not shock anyone though because the condo units were in the Harwich Port, a posh complex with expensive pads.
Here are the luxury condo developments in Cape Cod that demanded blockbuster prices:
The waterfront resort offers breathtaking views of the harbor and its sparkling waters. From every room, the units in the resort give the tenant or the owner a view of the Nantucket Sound as well. There are also world-class amenities, thanks to the first class beach club package inclusive of tennis, two in-ground swimming pools, a private beach, a beach grill, and an outdoor bar. There is also a playground for kids and adults can use the fitness room.
The resort was built back in 2007 and measures 5,319 square feet of space for an open floor plan condo Unit 11. There are four bedrooms, along with five full bathrooms and two half ones. During the time of the listing, the pricey condo unit boasted of the gourmet kitchen, the third-floor conveniences for the Nantucket Sound, and the upper walkout deck.
The luxurious unit also offered a membership to the tennis and beach clubs. The tenant is set to enjoy a private pergola with wood and stone from Belgium. The resort condominium is just a short distance to the Harwich Port Village, as well as shopping and restaurants. The asking price for Unit 11 at that time was $3,600,000.
In the same building, another expensive condo unit was for sale. Unit 2’s original asking price was $4,350,000 but later lowered the price to $3,500,000, which was still quite high.
West Hyannis Port
Another captivating listing is located right in the heart of Cape Cod, the brand new property, which was just completed in July of 2017, can give the buyer just what the coastline of Massachusetts is about. The unspoiled piece is just nearby the popular Kennedy Compound. The property truly exudes what it would feel like to live in a quintessential beach real estate.
The waterfront property spans a total of 7,000 square feet. According to the listing, there are indeed large houses in the area, but most of them are overwhelming. For this new property, there is something inviting about it.
Unlike with many waterfront homes that are not ideally shown during rainy days, this property is different as there is so much to see inside the luxury property. Additionally, the outdoor space is a true masterpiece as it boasts a 400 feet private beach, which is the focal point of the area. Anyone who stands inside the property will see just how beautiful the southern views are.
The waterfront site has easy access to several beaches, including Craigville Beach, which is considered one of the most famous places in the Cape. The property offers seven baths, four half baths, and five bedrooms. Among the amenities include a garage with space for a total of four cars and indoor features, such as a library and dog grooming.
The asking price is $12.5 million, and for the right price, the luxury waterfront property can be purchased furnished.
In 47 Commercial Street found in the village of Provincetown in Cape Cod, there is this luxurious condo asking for over $2.5 million. The condominium spans a total of 2,452 square feet and has been around since 1800.
The condo features a four-bedroom waterfront property in an exclusive west end setting. The buyer can enjoy high-end amenities, including three fireplaces, hardwood floors, access to the beach, and a private outdoor area. There is also a very large kitchen, complete with vaulted ceilings as well as signature water views. The master bedroom of the property also has waterfront views. The condominium has been well maintained and has been renovated with modern amenities back in 2001.
In the same area of Provincetown, there is a luxury condo duplex right at 350 Bradford Street. It is also a luxury condo building but has been having issues because of its height. According to an independent surveyor, the complex exceeds the height restriction of the town as it is 6.2 feet tall.
Due to the protests, the town sent the survey results to the developer and requested for a plan of action that should be issued back in July. The condo building has a total of 13 units in the seven buildings on the property.
Based on the zoning bylaws of the village, the height of the building must be dependent on the natural grade or the ground surface before alterations made by man. The team of surveyors insisted that the measurement of the base elevation of the condo property was inaccurately calculated. The surveyor used old topographic photos and maps to present that the land was gently sloping and not dropped as it is today.
The height concern was raised back in June of 2017, and the developer was given a month to respond. The firm then acknowledged that the architect made a mistake in determining the true height of the land, causing the condo development to stop its processes. At that time, one of the duplexes was under construction.
Even as the project was put on hold, the condo still opened during the fall season this year. The condominiums were marketed as luxury properties in the East End of Cape Cod. The units included oversized windows with open floor plans for each room. There are also nine-foot ceilings and roofs designed to be flat to maximize the entrance of light in the living spaces. From the units, views of the area and sunset can easily be witnessed.
The prices for the condos start at $659,000 with the most expensive unit priced at $1,149,000.
Another luxury condo in a Cape Cod village is found in Truro. It is not as expensive as the other mentioned properties above, but it is just as luxurious. It only has two bedrooms with two baths and just 1,200 square feet of space. The asking price is $599,000.
This condo is just new as it was built in 2015. As expected, there are stunning views as offered by its waterfront location. It has a southerly exposure on the bay, allowing views of Provincetown and Wellfleet in the upper deck of the condominium building.
This condo has a Great Room, which proudly presents high-quality wood floors and oversized windows. There is also a gourmet kitchen that comes with a breakfast bar and much more. The condo also has plenty of space for the dining area where entry can be done through the sliding glass doors.
Meanwhile, the master bedroom has en-suite bath and a soaking tub. The other room can be used as a guest bedroom, which also comes with its own bathroom. Other amenities include air conditioning and heating systems. The rent is $3,500 weekly, and the condo can be offered complete with furnishings.
More Buyers despite High Prices
Cape Cod’s natural resources have always drawn visitors to the peninsula, especially during the summer season. With its proximity to the islands of Martha’s Vineyard and the Nantucket Sound, buyers and renters are always looking for a place in Cape Cod.
With the enhanced cultural attractions such as golf courses, galleries, shops, restaurants, and cities, Cape Cod has become a real tourist destination. While it is popular in the summer, many people still flock to the area in winter with the promise of a bracing walk on its beach.
Sellers of condos and other residential properties in Cape Cod may find the market as lukewarm for them, but there is something for buyers to rejoice about. Although the prices are steep, there are several opportunities in the area, even for those looking for a luxury property.
Compared to the luxury market in Boston, Cape Cod’s prices are still not as high. Greater Boston has prices that start at $1,380 for every square foot. With such comparison, the peninsula is still one of the best destinations, especially for those searching for a vacation home with a waterfront view. Although Cape Cod may seem like a buyers’ market, it is actually a great time to start a real estate investment.