WEST YARMOUTH – The Cape Cod & Islands Association of Realtors has issued a report that says a historic run of housing sales lasting from the middle of 2020 through the middle of 2021 has cooled down entering the new year due to a nearly complete depletion of available housing inventory.
According to data released by the association, housing sales dropped 13.4 percent from 2020 to 2021, with 6,117 and 5,296 homes sold, respectively.
The halt has fueled a rise in home prices in the region with the median sale price rising from $479,000 in 2020 to $570,000 in 2021, a steep rise of 19 percent.
“The hot housing market we saw through the pandemic has been held back by the lack of inventory. However, that lack of inventory is not tempering prices, but only the amount of sales,” said Chief Executive Officer Ryan Castle.
At the end of 2021, the Cape Cod & Islands Multiple Listing Service reported 388 available homes for sale, a 54.8 percent decrease from the year prior.
According to Castle, the lack of inventory could have a negative effect on the Cape economy.
“There is an imbalance in the market. We have more demand than we have available housing, and are seeing historically low amounts of new listings come on the market. This is a bad precursor for Cape Cod’s economy as housing sales drive many other facets of the economy,” he said.
“The first half of 2022 will see double digit declines in sales because there simply are not enough houses on the market to sell to satisfy the needs of the region. We absolutely need more housing for sale on Cape Cod.”
The announcement comes as many in the Cape & Islands struggle to find affordable housing.
All data released tracks single-family homes and condominiums as per the Cape Cod & Islands Multiple Listing Service for Barnstable County.
By, Matthew Tomlinson, CapeCod.com NewsCenter
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