Cape Cod Real Estate
2nd quarter update
Where is the Cape Cod Real Estate market headed?
In the short term, it seems to be bouncing along with about a 15% loss of value from the “peak” in 2005. There is a greater loss of value in some hard hit areas, where foreclosures have caused “comparable values” to decrease much more substantially. Interestingly, those were areas that were on the low end of the price points in any market.
There is a concept that novice investors, quick-flippers and first time buyers who are risk averse, cash poor (no or low down payments) or with poor credit, bought the least expensive property they could find, in order to capitalize on the real estate boom. When the Cape Cod Real Estate market began to destabilize, those low end properties were often in less desirable areas, may have had other issues that made them less able to hold the value.
What does that really mean? The more expensive Cape Cod properties (not including true luxury properties, which are their own story of price), have fallen less in value, as the Sellers could stay put through this market, or wait for the right Buyer to come along. There is a saying “there are no desperate sellers on Cape Cod” which is not totally true now, but there are fewer, and that has allowed the market to hold its own in a relative sense.
For the 1st 6 months of 2008, the median sales price has fallen 6.5% (compared to 1st 6 months of 2007), and the number of sales fell 8.2% over the same period. That is certainly not catastrophic, by any measure! We are seeing activity on the buying end with second home buyers, and 1st time buyers particularly motivated. The best Cape Cod houses in terms of condition and price are getting showings and offers. We are still seeing Cape Cod houses selling overall at 92-94% of the listing price.
Is it a Buyer’s Market? No doubt, but with qualifications. Our Cape Cod real estate inventory is still high, but not substantially different than in 2006 and 2007. The inventory level is up about 60% from 2005 (the height of the market), but even then there were over 2500 properties available!! The days on the market has lengthened substantially since 2005 and 2006, but not so much more than 2007.
Mortgages guidelines change daily, and are being tightened continually. Certain types of mortgages that were readily available even in recent months may not be so now. Rates are very competitive now, with among the lowest rates ever.
Price is still the great motivator. When a house is priced appropriately, it will generate showings and offers. Buyers with a mentality of ‘stealing’ a well priced house in good condition in a great location will be disappointed in the results.
The best strategy for success for Buyers or Sellers is to work with an experienced Realtor, who is in position to provide professional consultation on the market conditions for the geographical area, price point and requirements of the situation for the individual consumer.
Price, preparation and location have never been more important to both Buyer and Sellers of Cape Cod Real Estate.
If I can help you with any of your Cape Cod real estate concerns, I bring 23 years of experience in listing and selling properties—in ALL market conditions!!
Deborah Schilling
Certified Residential Specialist
Graduate Realtor Institute
Accredited Buyer Representative
Member, Real Estate Cyber Society
