As predicted, lower inventory pushed Cape Cod home prices up by 6-percent over one year ago, according to the Cape Cod and Islands Association of Realtors. The latest data available shows the median price of a Cape Cod home is now $398,000.
The supply of homes for sale dropped 7-percent in 2017, and that reduced the absorption rate to 5.3 months from 6.9 months one year ago. The absorption rate is the length of time it would take for the existing supply of homes to sell out at the current sales rate.
Provincetown lead all towns with prices surging 33-percent. Orleans gained 13- percent, Mashpee was up 10 percent for the year.
Dennis and Chatham saw pricing corrections, down -4.5 and -2.2, respectively.
Prices were relatively flat in Harwich .5, Barnstable .6 and Yarmouth .9.
Elsewhere, prices were up 5.4 percent in Falmouth, 7.9 percent in Wellfleet, 1.6 percent in Truro, 1.4 percent in Sandwich.
Analysts cite several reasons for the lack of homes for sale. Homeowners who purchased when mortgages hit historic lows are now loathe to buy something else with a higher mortgage rate. Also, homeowners who would like to sell their Cape Cod home to purchase something different, can't find something they want.
Looking at the year ahead, some factors expected to influence the Cape Cod real estate market are natural disasters and the threat of flooding, inflation and rising interest rates, and the restrictions on income tax deductions due to the Tax Cut and Jobs Act recently passed by Congress. States without income taxes such as Florida, Nevada, Tennessee and Texas are expected to benefit.
But hey, you don't hear singer Patty Paige crooning about "Olde Nevada", now, do you?