May 2008 Cape Cod Market Report
The season is about to start and the Cape is beautiful with the flowering trees in bloom! Today's market on Cape Cod offers incredible opportunities for buyers...and just in time for our summer season! Interest rates are at historic lows, conventional financing remains readily available for qualified buyers and there is a wide selection of homes in all price ranges avail-able and waiting for you.
To quote our Cape and Island MLS newsletter: "For buyers, conditions are optimal! Plus, prices have balanced out and are lower than they were a few years ago. In addition, a home remains one of the best, most solid long term investments one can make. Over the past 30 years, homes have increased in value on average 6.6% per year, and the value of a home doubles every 10 years. You can't watch the sunset and feel the Cape Cod summer breeze from a mutual fund. Don't wait...right now is a fantastic time to make the investment in a Cape Cod home!"
The Massachusetts Association of Realtors feels that for 2007, the housing market fundamen-tals remain strong. There was less inventory on the market in 2007 than in 2006. The Association states that sales are still at a historically high level, mortgage rates are at historic lows and sales are moving along with better things to come as our season begins on the Cape.
Fewer homes on the market on the Cape is good news in that it shows the inventory is being used up. If you buy now rather than later, you have the advantage of more homes to choose from with more amenities and in locations that appeal to you.
The current inventory of homes for sale is down 2.95%.
Homes sold year to date is down 9.82%
.Homes under agreement is down 16.03%
Median value of homes sold is down 9.82% but the average value of homes sold is up.
What does this mean to you as a buyer? My feeling is this is a great time to buy a home as historically, homes on the Cape and especially in Chatham keep their value and appreciate. Just in this past year I have seen various areas where there were beach cottages upgraded to year round homes. While there is not nearly as much "spec" building going on except for homes well over $1,000,000, there is quite a bit of activity improving existing homes for re-tirement or for use as second homes and rental/investment properties.
Chatham has been spared the subprime mortgage and foreclosure disasters to a very great extent although other areas west of us on the Cape have not been so fortunate.
We anticipate a great summer despite the negative press from the media. It is always wise to remember the press is reporting overall conditions in the nation and in the entire state of Massachusetts, while the Cape is a special entity unto itself and Chatham a very special part of the Cape.
In conclusion...this still is a buyer's market and there are some really attractive homes at most attractive prices in Chatham, Harwich, Orleans and Brewster...some around assessed value. If you are considering buying a home, this is an excellent time to do it!
If you are thinking of selling, the question of should I put my home on the market is a little more difficult. First of all, if you are willing to price yours right and it compares favorably with others on the market in your community, then it will sell. However if you price it high, only bad things happen. It will sit on the market without any showings and you will get upset with your Realtor and he or she may lose interest. Then if you lower your price to where you are competitive, buyers will wonder what is wrong with it, think you are desperate and feel they can "steal" it.
Therefore if you don´t need to sell, don´t. But remember, it is going to be a long time before the market goes back up. We probably will not see any appreciation next year and then only 6% or 7% for the next few years thereafter. In making your decision, be sure to factor in your carrying costs, i.e. taxes, insurance, mortgage payments, home owner and condo fees, utili-ties, etc. If you take a hard look at the numbers you may find it makes sense to sell now.
I hope this report has been informative. Please be in touch if I can help you.
Evelyn Doane
508-237-1629
www.ChathamByTheSeaWithEvelyn.com
edoaneccod@comcast.net
This report discusses the overall Cape Code real estate market and not any specific prop-erty, community or area. The opinions are that of the author and should not be considered to be a specific recommendation. They along with the data are presented to help you make an informed decision.
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