W
ealthy investors, spooked by recent market volatility, are turning to more stable assets like luxury real estate on Cape Cod. According to Paul Grover, cofounder of Berkshire Hathaway HomeServices Robert Paul Properties in Osterville, sales of homes above $2 million have surged 35% this year compared to the same period last year. This trend is driven by buyers who can afford to pay cash and are less concerned about rising interest rates.

    Luxury buyers on Cape Cod tend to be insulated from market fluctuations due to their wealth and ability to pay cash, said Betsy Hanson, CEO of the Cape Cod and Islands Association of Realtors. Many come from within driving distance, primarily from Massachusetts, Connecticut, or New York. However, Grover notes that an increasing number of affluent buyers are coming from farther away, such as Texas and California, where they're seeking a more stable and desirable location.

    Luxury prices on Cape Cod typically start at $2 million to $5 million, depending on the location. Last year, Grover sold a property in Barnstable for $22.75 million, the highest price ever recorded for a single-family home on the Cape. These properties are often vacation homes that don't see much use beyond July and August.

    Cape Cod's luxury market has been relatively immune to the broader real estate trends, including high interest rates and prices. The median sale price of single-family homes on the Cape rose slightly in April, while other markets experienced declines. With a tight housing supply and strong demand, the Cape remains an attractive destination for luxury buyers.