If you are one of the many people who visit the Cape on a yearly basis, have you ever considered purchasing real estate on Cape Cod? Every year millions of people visit the Cape as a vacation destination. The friendly atmosphere, beautiful nature, and fantastic restaurants make it the perfect place to kick back and relax. Purchasing property on Cape Cod and the surrounding areas is a great investment that can last you a lifetime.
In this article, we will take a look at why purchasing real estate on Cape Cod and the surrounding areas is worthwhile. Additionally, we will take a look at the housing markets on Cape Cod, the islands (Martha’s Vineyard and Nantucket), and Plymouth.
Why Purchase Real Estate on Cape Cod and the Surrounding Areas?
While we can think of about a million reasons why you should consider moving to the Cape, we’ve broken it down to three succinct reasons:
- Profitable Investment
With 550 miles of shoreline, 42 golf courses, hundreds of miles of walking trails and a thriving art community Cape Cod is the perfect community for every type of person.
While you may get a glimpse of what the Cape Cod lifestyle is like when going on vacation, you can’t truly understand the community until you become a part of it. Purchasing real estate on Cape Cod and the islands gives you a unique insight into the true lifestyle of someone living on the Cape.
While you may not be able to move to Cape Cod full-time right now, purchasing a property on the Cape can be an extremely profitable investment. As one of the most popular vacation destinations in the country, tourists are always looking for fun and unique places to stay on the Cape.
If you purchase property on the Cape and rent it out to tourists while you aren’t there you have the opportunity to at least cover your mortgage. That way you still have a place of your own but won’t have to shoulder the full cost of purchasing a new property.
Cape Cod’s slow-paced lifestyle and friendly atmosphere make it a great place to retire. While you may not want to purchase new property when you retire, if you’ve held onto a rental property for several years, you can finally cash in on your earnings.
The income from rentals combined with the sale of another property should be more than enough to allow you to live full-time at the Cape.
If you don’t already own real estate on Cape Cod, it is still a great place to downsize. With a large retirement community, there are plenty of cottages and condos available for sale each year.
What is the Real Estate Market on Cape Cod Like?
Much like the rest of the country, the market for real estate on Cape Cod boomed in 2021.
The average sale price per house increased by 18.3% from $664,452 to $786,120. Additionally, the median sales price increased by 19% from $479,000 to $570,000.
Homes sold extremely quickly only staying on the market for an average of 36 days.
All this information shows you that real estate on Cape Cod is an extremely valuable asset. People want to own property there because it’s a great place to be.
If you’re interested in purchasing real estate in a particular part of Cape Cod visit the FastStats website to check out real estate numbers by town.
What is the Real Estate Market Like on the Islands?
While housing can be expensive in Cape Cod it doesn’t compare to the prices on Martha’s Vineyard and Nantucket. An ever-increasing population with no room to grow paired with increased prices for supplies has caused real estate prices to soar on the islands.
In 2020 the average cost of a house was $1,035,000. That was a $735,000 gap from what the average family living in Martha’s Vineyard can afford. The pandemic has only made the gap worse.
This major gap has attracted the attention of city officials and they are working on constructing affordable housing to help meet the needs of the town’s citizens. For the time being, unless you have a lot of money to spare, it’s best to avoid buying on Martha’s Vineyard.
Housing in Martha’s Vineyard seems like a real steal compared to Nantucket. In December 2021, the median home listing was $3,000,000. That averaged out to be a median listing of about $1,200 per square foot.
What’s even crazier is that the median home sale was $3,500,000 meaning that people were paying well above the listing price. Even more astonishing is that the median sales price continues to increase by almost 15% each year.
What is the Real Estate Market Like in Plymouth?
Much like the rest of Cape Cod and the surrounding areas, the Plymouth housing market continued to grow in 2021. It only increased by a modest 10%.
While homes are not cheap in Plymouth, they are much more affordable than on the islands. In 2021, the median listing price was $549,000 averaging at about $288 per square foot.
The good news is that the medium house only sold for about $522,000. This would seem to indicate that housing prices are trending cheaper. However, limited supply due to everyone buying homes in 2021 may drive the prices back up.
How is Climate Change Affecting the Cape Cod Real Estate Market?
As with any coastal property, one has to wonder about how climate change may affect the real estate market. Cape Cod and its surrounding areas are susceptible to the effects of climate change.
If no action is taken erosion and rising levels could have Cape Cod underwater in the next 50 years. However, beach restoration projects and green initiatives have proved effective in delaying the effects of climate change.
As you can tell by the housing prices above, climate change has not affected the value of the real estate on Cape Cod.
Where Should I Buy Real Estate on Cape Cod and the Surrounding Areas?
The best place to buy real estate in and around Cape Cod really depends on your budget and lifestyle preferences. If you have unlimited funds and want to be in the heart of a tourist country then Martha’s Vineyard or Nantucket is the best place for you.
If you’re living on a tighter budget and don’t mind being a short drive away from the prime beach spots, then Plymouth is a better option for you.
Purchasing real estate in Cape Cod is a happy medium between the two. It’s close to popular vacation spots but isn’t quite as expensive as the islands.
Regardless of where you choose to buy real estate in or around Cape Cod, you’ll be investing in a potentially profitable asset surrounded by a welcoming and easy-going community.