The Year in Real Estate

The Provincetown Housing Market 2007

Harborside Realty is pleased to present our 2007 Provincetown Market Review, a snapshot of real estate activity over the past year in Provincetown, Massachusetts. The Review uses sales data reported by the Cape Cod & Islands Multiple Listing Service, and compares figures for the years 2005, 2006 and 2007.

-Len Bowen, Harborside Realty

The Market Overall

The year 2007 appears to have been one of "stabilization" in the Provincetown housing market.

After the dramatic "market correction" experienced in 2006, the number of properties sold and the total dollar volume of sales in 2007 both increased over the numbers for 2006.

Total Dollar Volume & Unit Sales

The Single Family Market

Single family home sales demonstrated the most dramatic turn-around of all property types:

- 2007 dollar volume doubled that of 2006, rebounding nearly to the 2005 level

- 2007 properties sold equaled the number in 2005, a banner year;

- 2007's average price increased 18% over the 2006 average price

Nevertheless, the average price for a single family home in Provincetown today represents a decline of about 15% from 2005's price; and it takes 50% longer now than it did in 2005 to sell a home.

The Condominium Market 

The condominium market fared less well than the single family market:

-2007 dollar volume was about 5% off the 2006 figure;

-the number of properties sold was essentially the same in both years

-the average price of a condominium declined about 3.5% from the 2006 number

-selling time increased to 5.5 months from 2006's 4.5 months.

The "good news" is that these all represent substantial improvements over the

dramatic changes witnessed in 2006, when dollar volume and number of properties

sold declined 25%. It would appear that a floor has been established.

Multi Family & Commercial Property

Income and commercial property sales show a mixed picture. Multi family property

Sales stabilized at 2006 levels, while commercial property and hotel/motel property

Transactions dropped dramatically. The small number of transactions in each category

make generalization hazardous.

Dollar Volume Unit Sales

Market Outlook

Prognostication would be foolhardy. The economy is uncertain, the mortgage market is

in flux. On the bright side, baby boomers--our largest market niche----are out there

in numbers, the 2nd home market around the country is showing incredible resilience,

and our own condominium and single family home market seems to have settled down

from the turbulence of 2006.