Vineyard Brokers Report Sales Up Across the Market

By ALEXIS TONTI

With the turn of the season from summer to fall there are signs that
the Vineyard real estate market has turned also, picking up the pace as
it rounds the corner after a slow stretch.

"Sales are absolutely up," declared Judith Federowicz,
the owner of Landmarks Real Estate in Vineyard Haven.

"The market has been very good since Memorial Day weekend, and
it is still going strong at this moment. And the biggest sale time,
traditionally, starts now - from the beginning of the fall to the
new year," said Julie Flanders of Flanders Up-Island Real Estate
in Chilmark.

"It's been an extremely active market this year. There
have been a good number and a good variety of buyers. I would say we are
most definitely a seller's market," said Sharon Purdy, the
owner of Sandpiper Realty in Edgartown.

Over the past three years, the events of Sept. 11, the weakened
stock market and the overall downturn in the economy put a damper on
Vineyard real estate sales. Properties on the market for less than $1
million found buyers, but anything pricier was slow to go.

In recent months, however, many Island real estate brokers say they
have seen a surge in the sale of properties for $3 million to $5
million. And while the high-end market is still sluggish, they say
business now is clearly stronger than it has been in awhile.

Ms. Flanders estimated that her agency will finish the year about 10
per cent higher than last year in total sales.

"Some of it stems from historically low interest rates. Even I
say, ‘Where can I buy next?' You can't help it,
it's like a shopping frenzy," Ms. Flanders said.

"It also shows that even in these times the Vineyard retains
its appeal. Families feel safe and secure here," she said.

Ms. Purdy said Sandpiper Realty is up about 15 per cent in total
sales over this time last year.

She said properties that are on the market for less than $1.5
million are still the quickest sells. She also said she has been
surprised this year to see properties moving in the $3 million to $4
million price range.

Ms. Federowicz, who reviews reports about the Vineyard real estate
market daily, said there has been a sharp rise in property sales in the
$3 million to $5 million range this year.

"All indications are that the upper-mid market is definitely
active, very healthy numbers," she said, adding that Landmarks is
about 30 per cent ahead of last year in total sales.

Ms. Federowicz said that since January of this year 89 properties
have sold for more than $1 million. She also said that there are
currently 30 properties under agreement to be sold for more than $1
million.

"That really says something," she said.

Ms. Federowicz said she thinks the change means that the economy is
regaining some of its strength.

"A year ago we were still suffering the after effects of Sept.
11 and NASDAQ. But now everybody is feeling more confident," she
said.

"In general, the public is more accepting of the fact that we
live in a different time and that terrorism is part of our lives -
and they realize we do have to go on living our lives. They have a more
realistic view," Ms. Federowicz said.

Ms. Purdy agreed.

"Quite simply, it's the economy and the war, and
that's what impacts us as well. In other words, your client
optimism is what fuels the market, as well as how other markets are
performing, like the stock market," Ms. Purdy said.

She added: "But I can honestly say that values on the Vineyard
have held very well. And in most instances, particularly in that lower
price range again, we have seen some good appreciation."

By all accounts the most expensive properties still constitute the
weakest part of the market.

"There's been interest, but no one has really stepped up
to the plate to buy," Ms. Federowicz said.

"The demand for high-end properties still has not fully
returned to what it was before the stock market change, and only time
will tell whether it will," Ms. Purdy said.

Numbers from the Martha's Vineyard Land Bank support the
trend.

The lank bank collects a two per cent transfer fee on most Island
real estate transactions. The money is used to purchase public
conservation land.

The land bank reports more than $2.46 million in total revenue so
far this fiscal year, a 38 per cent increase over the same period last
year, when revenue stood at about $1.54 million. The new fiscal year
started July 1.

Sharp increases in land bank revenue sometimes are attributed to the
sale of a few high-priced properties. But land bank executive director
James Lengyel, who closely monitors property sales across the Vineyard,
said this year's jump reflects a broad increase in sales at all
price ranges.

"It is commonplace in the land bank chronology for large sales
to pop up, but we really haven't noticed any cluster of those
sales recently. It would appear that there are generally more [sales]
across the board," Mr. Lengyel said.