As we begin the first week of 2010, the outlook for real estate on Cape Cod is mixed-as it has been for some time. There have been some good analyses in print and other media. Since Fall 09 was pretty good on  Cape Cod, we hope it will continue into 2010.

The difficulties are going to be with financing and credit issues, as banks are constantly revising lending guidelines and becoming more conservative. The Consumer is feeling more confident, and has been accustomed to being able to secure financing for most purchases unless their credit rating was really poor or they hold too much debt. That may change in the coming months  as Private Investors begin to buy ‘Mortgages’ (technically Mortgage Backed Securities) again. Those investors are likely to be more cautious, and will put pressure on Interest rates to rise-to make their investments pay off.

We are not immune to this on Cape Cod, but I am optimistic that the activity I saw in the Fall of 2009 was based on confidence in the value of Cape Cod real estate. We tend to have more affluent buyers than some resort areas, and although all income levels were affected by the economic downturn, our Yankee frugality and/or generally higher income levels allow Buyers to believe our real estate is a good long term investment.

The most recent reports I have from Realtor.com (the most visited Real Estate Web site in the U.S.), show a substantial downturn in ‘Views’ in December. The high points (overall) were earlier in the Fall, as Consumers began to see possible good news ahead. I will be monitoring the activity in January, and hope the weather moderates. Once the initial cold snap happens, though, cold and inclement weather doesn’t stop Buyers, so we are all accustomed to it now, and look forward to Spring (and maybe a new Home!!)

Other indicators show that there is serious interest in Buying on Cape Cod, with the help of the Homebuyer’s Tax Credit (for first time buyers and existing home buyers), and with Investors looking at the many opportunities that are available for purchase.

I had an excellent showing today on a house I have listed in Marstons Mills, located on a Saltwater River, with views to Prince Cove with its deepwater marina. It is listed for $474,000 and the prospect is a local Builder who loved the location and may be up for a project to update this unique property.

We still see good activity for First Time Buyers, and Second Home Buyers, and I expect it to pick up considerable as our “Spring Market” develops. (Yes,  the Spring Market on Cape Cod does begin well before the daffodils come up and the grass turns green-the Early Bird gets the choicest worms here!)

Deb

Yesterday I closed on a listing that was in East Falmouth-a cute Cape in a nice neighborhood of Ashumet Valley Estates. The economic stimulus has had a positive effect on real estate and in this case it helped both the Buyer and the Seller!

The Buyers-a lovely young couple who are schoolteachers bought the house, and will utilize the extended First Time Buyer Tax Credit. I suspect (they were not my clients) that they will reimburse themselves for expenses associated with the purchase, and maybe even buy some new items for the house.

The Sellers are moving out of state to new jobs, and their purchase is likely to be in time to qualify for the Tax credit for homeowners who are selling a home they have occupied as a primary residence and buying another.

Without these incentives, the transaction may not have come together-the house was listed by another agency earlier in the year, and little activity. I listed it in August, and it seemed like properties on Cape Cod in the 'First Time Homebuyer' range were really selling well. Also, we were seeing an uptick in Second Home Buyers purchasing on Cape Cape Cod. In fact, we had several interested parties from each category. A couple of offers were very low, and not able to be successfully negotiated, as the Buyers were reading Media reports of lack of activity and low list to selling price rations. With patience, and effective marketing, this house found its perfect Buyers in November, and may not have been able to sell prior to the original expiration of the Tax Credit.

We ended up with Happy Sellers and Happy Buyers for this Cape Cod home in Falmouth, and look forward to seeing continuing momentum in 2010-the signs are postive! ?For details on the Tax Credit click on the link below, or call for a hard copy, email or fax for details on this wonderful benefit.

tax_credit_indformation_sheet.pdf (71.34 kb)

Happy Holidays

Deb Schilling

Photo of Association beach on Ashumet Pond-if you own in this neighborhood, you would have rights to this find freahwater beach.

During this difficult economic time, it is important for all of us to remember how much our donations mean to the charities or non profits we choose to support. Late last year and earlier this year, the slow down in the Cape Cod Real estate market made it difficult for me to keep up with my charitable giving. I have had the good fortune to have had a 2009 that by the end of the year will not be 'off' that much from 2008!

I have selected a new organization to support-The Cape Cod United Way. They have traditionally supported a wide variety of programs and organizations locally. I invite you to explore their mission and share in supporting it. Connect with them at www.uwcapecod.org and view the Giving or Volunteering opportunities at www.uwcapecod.org/pdf/broforwebsite.pdf . As a small businessperson, I elected to commit to giving through the Rising Tide program. My name was featured in an article in the November 2009 edition of the periodical Cape and Plymouth Business as a participant in this new program. To read the article about the United Way Cape Cod, connect to

Rising Tide article Cape & Business Nov 09.pdf (1.32 mb)

I have also been a long time fan of Libraries in the Town of Barnstable. As I lived in Marstons Mills for 20 years and my Real Estate office has always been in Marstons Mills. I also support the Marstons Mills Public Library at www.mmpl.org It is a fine small library with a local feel, which is true for the other 6 libraries in our Town.

I also feel we have a treasure in Talk Radio with our local NPR radio station with is WCAI. I enjoy the wide ranging topics and interviews-from politics to nature and personalities on a local Cape Cod level. Learn more about the programming or listen online at www.cainan.org

I have made a commitment to be a Sustainer by a regular monthly commitment pledge to PBS WCAI Radio.

I believe that I owe a lot to Cape Cod for my success and the joy that every day reminds me how lucky I am to live in such a wonderful place! Whether you are here already and need to change your living situation, plan to move here by buying a second home, or retire here by buying a retirement home, I would be pleased to help you with a no obligation consultation to help you in your decision process.

Deb

The recently extended HomeBuyer Tax Credit is poised to help us continue our strong gains in activity this Fall. Great opportunity for first time buyers, AND current Homeowners to take advantage of this Tax Credit to buy a home on Cape Cod!

This information sheet provides an overview of the Tax credit provisions

Here is a FAQ (Frequently Asked Questions) regarding how the Homebuyer Tax Credit actually might work in the "Real World"supplied by Laurie Hayes, VP Mortgage Banking at Eastern Bank, here in Marstons Mills. I think it puts it into an understandable context!

Rise and shine! I got up with the birds on Friday to attend a Breakfast meeting with excellent speakers offering perspective on Cape Cod Economic and Housing Outlook. Of course, it was important to incorporate big picture economics, as that affects Cape Cod. The forecast is Sun with Clouds-no surprise to those of us who see glimmers of positive signs, dimmed by realities of a long slow recovery.

Cape Cod economy is largely Real Estate based-not as much in new building, but in remodelling, and ancillary services needed by a large population of Vacation Home owners and retirees. Our jobs are largely generated by small (very small) businesses-again substantially in the housing related sector. We have some manufacturing jobs, some High Tech, substantial Health Care related positions and seasonal Tourism related jobs, but our economy is weak right now, in terms of job growth and local consumer confidence.

That said, the second home/retirement home Buyers, as well as a few-mostly local-investors are taking advantage of low prices to jump into Cape Cod Real Estate market.This is beginning to move up the price point from just the low end selling well ($250,000 and below) to up to $500,000 and higher properties beginning to have serious action.

Most speakers at the Breakfast felt our Real Estate is bouncing along the bottom, and likely to do this for some time to come. The factors that keep prices from rising with demand are the weak job market (little growth-especially through Spring 2010 locally at minimum), limited availability of financing for new start up businesses (who are the ones most likely to lead our economic recovery here-as in the past), high cost and availability of 'Jumbo' mortgages (which so many of our properties require).

We are likely, it is said, to see a Recovery in the Shape of an "L" with wiggles in the horizontal leg. We fell off sharply from 2008, and appear to have bottomed, and there are likely to be occasional lifts and positive signs, only to be brought back down until there is solid and sustained evidence of recovery. Then lending will resume-hopefully in a more reasoned way than when loans were provided with no thought of how they would be repaid, or the clamping down that virtually stopped lending in its tracks, except for Govemernment purchased products.

Realtors are said to be the most optimistic profession, and while that is true, in 25 years of my involvement in Real Estate, there positive outcomes in every market-there are always Sellers who need to sell, and there are always buyers who need or want to buy. If the volume and prices are 'off' then the competition is more fierce, and as a Realtor, my job always has been and will be to offer the most professional advice to help my clients achieve the goals they set. Sometimes that means only offering advice until the market changes, sometimes it involves helping the clients through a difficult buying or selling process-it is all part of what I do!

Deb