Martha’s Vineyard Real Estate, hope for 2011

by Kerry on January 3, 2011

Martha's Vineyard real estate 2011

2011

January is a time of renewal, hope, expectations. It is a new year literally, a blank page that can be written however we like. We get to start over.   A new year = the possibility of a BETTER year.

For the majority of us a better year is a natural expectation. The past couple of years have been economically devastating for many, not to mention the emotional cost of fear and apprehension. We all want/need/expect better. We have  become believers in tomorrow, ’cause today sure didn’t do it for us. We are all watching the ever-influential media for signs of recovery, signs of hope.

Real estate is the nucleus of the economy, particularly the Vineyard economy. It is the largest generator of finances, the furnace, and the companies that manage them are the coal shovelers…we,by default, are the coal . When times are tough, real estate is the first place we look for information on what is really going on. Is the housing market stable? Are lenders lending? Are interest rates climbing? Falling? stagnating? How about the inventory, is it appropriate, or is it flooded.  Can you get a bargain? Can you afford even the most lucrative deal if it presented itself?

The past couple of years have been an easy read for Vineyard real estate, which is our compass towards the economy in general. After all, our livelihoods depend on it. We are a community of real estate services. Our income is dependent on home services. From rental income to renovations, housing is our business. Those seasonal homes that line the  streets are year round sources of income on the Vineyard.  The majority of year round residents are contractors in all fields, mortgage lenders, appraisers, landscapers, insurance adjusters, attorneys, real estate professionals. We rent them, sell them, finance them, paint them, renovate them. We build them and move them and winterize them and then we covet them.

Looking back over the past few years, our real estate  inventory has steadily climbed.We have  properties in circulation that were listed in 2007, 2008 and on. Sales were down to few and far between, and  the prices were stubbornly steadfast until the writing on the wall  was printed in red ink.We had (and continue to have) a flurry of foreclosures, mostly from our precious year round community.

This past year has been more promising. There were some price adjustments that have encouraged sales, bringing out some of those buyers who’ve been waiting for the right set of circumstances to make their move. Interest rates are at amazingly low levels, inventory is up and prices are finally adjusting. Brokers were busier with listings and showings, and rentals were consistent with past years(because even if they are not buying, everybody still wants to be here).

This next year should yield similar results, bringing out more buyers, cutting into the inventory and hopefully moderating that sense of freefall that has affected the residents of this real estate centric community. 2011 is just beginning and is full of promise. We have the blank page and have written the first word. Hope.

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7 Things we we love about October on the Vineyard

by Kerry on October 30, 2010

October on the Vineyard is pretty terrific, and here are some reasons why;

Playing in leaves

Late October afternoon

The weather. Fall arrives later and October is what September is supposed to be. October is the month where everything changes.  There are boot and sweater days interspersed with flip flop and t-shirt days. Early in the month is still swim-able, and later in the month is the ideal for beach combing and trail hiking.

Change of season leaf-peeping. The leaves change color later than the rest of New England, and turn spectacular towards mid-October. Vines of red climb up the trunks of bright orange and yellow trees creating perfect up-island afternoon drives and hikes that will take your breath away.

Scallops. Recreational scalloping gets going around the end of October. This year due to dredging at Sengekontacket pond, the season opened almost a month early. If you are so inclined, fresh sweet little scallops are available for the price of a scalloping permit ($35.00). A fun activity that bears the fruit of your labors deliciously.

Winter water views. Many feel great pride when the ocean peaks through the falling leaves and a much coveted winter water view reveals itself. Distance has no bearing, it could be near or far when  the trees shed their leaves in a strategic manner. Sometimes an obvious and clear view, but more often you have to work for it maybe through the top left hand window when you stand on a chair…Nonetheless the pride remains and we secretly congratulate ourselves on our real estate choices.

Outdoor sports and recreation. I run. Others walk, play basketball, tennis and bike. The climate is ideal for sweat-inducing sports with a crisp wind and sunny skies. We run further distances, play longer matches and spend more time being active when the temperature is moderate. October is the month to start a new sport, train for a run or perfect your game.

Pot luck dinners and local foods. We are well known for our community and self sustaining support of local businesses. When October rolls around there are locally harvested dinners to attend, slow food pot lucks and restaurant-hosted island meals to be had. We have the time to plan and attend, participate and support the local farmers and producers who supply our produce, protein and baked goods. We feed back into ourselves and grow stronger.

Halloween weekend. On the Vineyard Halloween is a 3 day event (or longer) and any qualms about costumed adults need to be shelved. Get into the spirit if you are inclined, because every town, school and institution is celebrating this festival of dress up and eat sugar. From pony rides to parades, scarecrow contests and adult costume parties, it is a celebration of shedding inhibitions and  indulging in some fun before the colder weather arrives.

Martha's Vineyard Halloween

Scarecrow contest

Next up: November.

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Why Vineyard real estate will always hold value.

by Kerry on October 24, 2010

Vineyard jetty

Beautiful

There are two kinds of real estate buyers on Martha’s Vineyard; 2nd home, or vacation home buyers, and year-round islander buyers.
Either way, real estate on Martha’s Vineyard is expensive and will remain that way despite economic conditions. Even in the recession, our properties have maintained value, with an average price decrease of between 15-18% as opposed to some 35-40% in other parts of America.

Some obvious reasons for the maintenance of value in Vineyard real estate include the proportion of water-front, water-view and water-proximity homes. The fact that the land on this island is finite and well protected with conservation commissions and land bank fees. The higher than average cost of construction, labor and materials. The isolation/exclusivity factor that is attached to any and all types of Vineyard real estate.
There is also a driving force of market value that is far less tangible…emotion. Many of us came here as children or had family with homes on the Vineyard. Others are recent converts, arriving later in life to discover and experience what we all know to be Vineyard magic.
The island touches you so gently you hardly know its happening. Many find that once they leave they can’t get it out of their minds. Often we found ourselves daydreaming of Vineyard beaches, scenes, people and experiences. Often upon leaving we were already thinking about the next trip, the next swim, the next sunset.

Vineyard beach party

Beach bunnies

Those buyers that are looking for their second home, their piece of happiness, their family customs and traditions have been touched by the magic and want to pass it along to friends and family. The buyers that are looking for year round homes are convinced of the alternative version of their traditional lives, are willing to adjust and create for the opportunity to immerse themselves completely in the lifestyle that has come to represent freedom and serenity.
A catastrophe of immense and unimaginable proportions may shake the market here, but short of the Apocalypse we will not be seeing any extreme property liquidations.

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Why won’t this house sell?

by Kerry on October 4, 2010

The first time I saw this listing was three years ago in the dead of winter. The shutters were closed and the house was ice cold.  It was  a pocket listing, and the owners wanted the house sold quietly without any public admissions that the house was available. The listing price was 1.2 million.

East Chop Cottage

Buy Me!

I am a big fan of discretion, particularly in real estate transactions. BUT, if you are going to price your property at the extreme top of the possible price range then you’d better have someone willing to shout it from the rooftops. You need an agent with a megaphone and unlimited funding for advertising because the worst mistake made by sellers is overestimating the value of their home.

In the case of this house, painfully, over time, the asking price was reduced. I remember it being at 1 million. I remember it being in the high 9′s. I remember it in the 8′s.  It is resting at $750,000 and that seems about right. It is a sweet summer house (3 season) with no basement and limited insulation, a  small lot and partial views to the harbor. The house is in need of some repairs, is over a hundred years old and very charming. On Martha’s Vineyard,  $750,000 is a fair price for this property and it should sell…but it hasn’t.

Listings experience a flurry of activity when they are first introduced to the market. If a listing is overpriced even the flurry will be small. As the reductions are made and the house remains vacant, a vibe begins to emerge. The vibe of “there must be something wrong with the house”. When your house becomes stale, finding the right buyer is that much more challenging.

The process of pricing a property is a simple one. The market will dictate where you should be. We look at the sales of comparable properties and then we add or subtract money where the discrepancies lie. If one house is newly remodeled and the subject property is not then what is the extent of the remodeling? How much value has the remodel  added to the property, and an adjustment is made. Same thing with number of bedrooms or bathrooms or lot size…Basing an asking price on what you THINK you should be able to net will not sell the house.

The single most important way to sell your property is to price it right. Find a real estate professional to help you, and always substantiate your pricing with the current market trends. You may not HAVE to sell your house, but if it is on the market don’t you WANT to?

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View from the porch. Vineyard stories .

by Kerry on July 2, 2010

Vineyard Porch

There is no better place to be, than a porch on Martha’s Vineyard. Some say the beach, others the golf course, for me and thousands of my  voyeuristic peers, the porch is where its at.

Mine is enormous. Majestic even. Over 900 square feet of outdoor living space, it has seating and lounging areas. There is a hammock, dining table and the customary dog at your feet.

Critical to good porching is good location. My porch sits at the corner of two streets that are at the heart, the cross section of my community. It is the perfect porch to watch the day progress, marked by the types of traffic going by.

In the very early morning it is doggie time. The neighbors are out walking all type of canine and the area slowly comes to life with the soundless wandering of loyal friends and masters.

A little later in the morning, but still early for most, are the tennis players. Games that have been played summer after summer by the same pair or the same group of friends, they slowly make their way to the courts walking, biking and running by my porch.

These morning athletes are quickly followed by another breed, the runners (of which I am one). To some this is a starting point, to others the finish but most make their way past my porch.

Around mid-morning the tennis players come back, the runners return and the beach migration begins. Still early enough to find parking at the popular up-island spots, cars filled with children and toys file by, headed to beaches around the island. The vehicle being a giveaway to the destination, as nearby beachgoers mostly travel by foot or bike, a towel thrown around their shoulders.

Some go early. Noon. Others have lunch at home then head down, each time passing my porch to get to and from, here and there.

I also see the UPS trucks, Fed Ex, delivery guys and gals as well as contractors headed to jobs around the neighborhood. Zipping around dirt roads and hidden pathways, the secret routs reveal themselves on my porch.

Today my porch is my office. Watching the comings and goings and imagining the destinations inspired these words as I sit here observing, enjoying the wonder of a porch.

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