Are property values on Cape Cod going to fall?
The obvious factors that could potentially lead to a decline in property values on Cape Cod, are:
Economic recession: IF the local economy enters a recession, it could lead to a decline in property values as fewer people will be able to afford to buy homes.
Inventory: If the number of homes for sale on Cape Cod somehow more than doubles to quickly exceed the number of buyers in the current buyer pool, that could lead to a decline in property values, because sellers would probably need to lower their expectations of value in order to attract buyers.
New regulations: Regulations such as Title 6, the new septic regulations in Massachusetts, could lead to increased costs for homeowners, which could be passed on to buyers in the form of higher home prices, and could make some properties less attractive to buyers, leading to a decline in property values. This is a real and current threat, even with the inventory we have.
Natural disasters: Cape Cod is also prone to natural disasters such as hurricanes, heavy storms, and coastal flooding. Although there is debate about whether the actual level of the ocean has risen in any Cape Cod harbor in the last century, storms could lead to damage to homes and infrastructure, and a decline in property values.
It's important to note that property value can fluctuate over time and there could be other factors that could affect the real estate market on Cape Cod. We recommend that you connect to local real estate professionals like Team Coker, and stay informed about new regulations, changes, and events that could potentially affect property values.
With the current information we have, we don't see inventory increasing enough to negatively affect values. The Cape Cod real estate market is influenced by local economic conditions and by national trends. Interest rates affect buyers who require financing. We anticipate the Cape Cod real estate market to continue to be difficult for first time buyers and buyers who aren't ready to spend more than $400,000 on a property. The weather on Cape Cod is generally more attractive to most buyers than it is deterring. So, the answer to the question is that there are lots of IFs.
As real estate professionals with decades of experience, we not only watch the signs, we are inside properties every week. Our eyes see the real conditions and the actual amenities and components that a seller is offering. Rely on us. We love helping friends find their real estate answers and properties!
Best wishes, Heath
Heath Coker, Associate Broker
508-548-8888 c (Android) / 508-274-5613 c (Apple) / 508-540-9800
Holly Coker, Senior Sales Associate, 508-274-5612 / 508-540-9800
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