Martha's Vineyard Real Estate : Q & A with Abby Rabinovitz of Tea Lane Associates
Martha's Vineyard real estate sales appear to have fallen a little in volume and a lot in price. Is that your office's experience? If not, what has been your experience? And, what is your office doing that's new to energize the real estate market on Martha's Vineyard?
Abby Rabinovitz: Comparing Island-wide sales for 1/1/07-11/16/07 to 1/1/08-11/16/08, the total number of transactions is down 26%, and total dollar volume is down 36%. This is the general landscape of the market, but there are segments that are holding stronger than others, as well as pockets of great value for buyers on the island.
Our experience in the current market is that the number of sales is certainly down, as the stats prove, and that prices have declined in certain segments of the market and plateau-ed in others. It is important to note that volume in terms of number of transactions has been falling since 1998. Volume in terms of total dollar volume of the real estate market continued to increase from 1998 through 2005, as did median sales price, both indicators of rapid appreciation and a strong high-end segment of the market. Then in 2006, this phase of unprecedented appreciation of real estate values on the Island ended and the market began leveling off. While a healthy high-end segment of the market and a unique economic situation on the Island still exist today, with continued declines in market dollar volume and number of transactions in 2008, the market has become the best buyer's market we've seen in many years.
Martha's Vineyard has been and will always be a desirable vacation destination with a finite inventory of real estate. We have not experienced the radical price declines like other markets around the country. That said, the present market conditions offer buyers an expansive inventory of properties to choose from, excellent value, interest rates at 40-year lows, and strong local banks that are actively lending. This combination of elements creates an opportunity for buyers.
In terms of what our office is doing to energize the market, Tea Lane Associates is doing exactly what we've been focusing on for over 40 years, providing exceptional service and market knowledge for our clients. Marketing gimmicks do not work in this business and will not alter the dynamics of the market. Success for both our buyers and sellers lies in partnering with someone who knows how to navigate these market conditions to make them work for you.
The fall and the spring have traditionally been the big real estate sales periods on Martha's Vineyard. Are buyers adhering to that longstanding pattern, or is there another pattern developing?
Abby Rabinovitz: In 2008, Tea Lane Associates sold properties ranging from $372,000 to $14,000,000 with 82% of sales occurring in the spring and fall. Our current inventory of sales properties ranges from $410,000 to $22,500,000 and we are hoping for a strong spring.
What are you telling buyers and sellers about what they should expect in terms of pricing, volume of desirable listings, length of time a seller may expect to see his property on the market?
Abby Rabinovitz: For buyers, as mentioned above, this is an exceptional buyers market with excellent values available, incredible selection of inventory, low interest rates and strong local banks that are actively lending. Tea Lane Associates can help you navigate this market to achieve the best outcome for you.
For sellers, the single most important element in selling your property is to price it correctly for this market. Given the seasonality of the Island, expect it to take a year to sell. However, we have seen unique properties that are priced right sell much more quickly, in a matter of weeks or even before the property is officially listed on the market.
What sells is what is priced right, but because properties on the Island tend to be very unique in terms of location, views, beach access and innumerable other elements, pricing is sometimes very tricky. It is reasonable to test a price point, but the most successful sellers are those who are willing to be flexible and adjust the price quickly according to market feedback.
