Feels like we are on the brink of completing a full boom, bust, boom cycle. Prices are moving up and are, in some cases, moving beyond ’05/’06 highs. 22 Cliff Road is a great example of this. It sold on 2/4/05 for $1.425M. Sold again on 9/30/09 for $1.15M. It came back on the market on 5/5/14 for $1.425M. It has not sold, yet, so we do not know market value, but I imagine it will sell this season close to that price. Traditionally, the next boom creates new peaks and where the last boom left off becomes the new mean. I think that will hold true for this cycle and this boom feels different in that banks are not handing out money to anyone with a pulse. The lending standards are much stricter than the last boom, so the buyers are either very qualified or cash. Should cause for a more sustainable rise. So, if we are at the mean, this Nantucket wave is still peeling and there is plenty of riding left.
“Well the joint was jumpin’, going ’round and ’round,
Hey! realin’ and a rockin’, what a crazy sound,
Well they never stopped rockin’ till the moon went down.” – CB/GD
Awfully bright out…