Real Estate Market Conditions
(As reported January 2008 by Shirley Enders)
My dad always said “The older you get, the faster time flies.” Well, Dad, I guess you were right! It's hard to believe 2008 is already here! Cape Cod had a glorious 2007 spring, summer and autumn, many beautiful and sunny days on our beautiful sandbar. The perennial beauty amid the ever changing seasons of this area never ceases to amaze me and is something Darryl and I never take for granted. We think we live in one of the loveliest places on the planet! Darryl says this wondrous place has so much 'eye candy'. Even in winter, we look forward to walking the beaches on the fairer days.
And, like the cyclical change of seasons, the real estate market changes too. Real estate seems to be on everyone's mind and in the forefront of media and news reports.
How did Cape Cod fare in 2007?
Every real estate market is local and while Cape Cod is also experiencing the downturn in the market, expected after a number of years of incredible appreciation, it is not all doom and gloom. Economic and motivational factors of buyers and sellers affect each area differently and because it is a vacation destination and has a large number of 2nd home buyers and sellers, our statistics are a bit different than other parts of the country that are more sorely affected.
While many parts of the country are experiencing serious declines in number of sales, Cape Cod is proving to be a bit more resilient. Comparing sales through the end of 3rd quarters (apples with apples), 2005 was definitely the stellar year with 3,095 single family homes and 799 condos sold. In 2006, 3rd quarter totals for single-family homes were 2,439 (-21%) and for condos 587 (-27%). Yet, 2006 was still is among the top 5 years for volume of sales!. Interestingly, 3rd quarter totals for 2007 through the 3rd quarter are mostly on par with 2006 for single-family homes with 2,429 sold (minus .5% - less than ½ of 1%) and condo sales are only marginally down (-4.4%) with 561 sold.
What about prices? Just looking “at the numbers” the median prices are holding fairly level. How is that possible? As many of you know, I'm a bit of a stats nut. A median is the middle number of a group of numbers. That is, half the numbers have values that are greater than the median and half the numbers have values that are less than the median. While a median sales price is usually much more accurate than an average when determining a picture in regions, the current median is skewing reality on the Cape. The reason: the huge diversity in price ranges in our region. Within a relatively small geographic area, Cape Cod offers homes under $300,000 and over $1,000,000. When the high end is selling and the low end is selling, it pulls the median in between up and we see smaller fluctuations which doesn't reflect reality within any particular price range.
The other reason is that despite a lot of bank owned properties and short sales being offered currently on the market, these are generally not anyone's “dream home” and some buyers are making other choices. There is also a large number of homes owned by 2nd home owners and they simply don't need to sell and hence can be more patient. Each property and location and price range needs to be considered individually so don't hesitate to give us a call if you are considering buying or selling. That's the benefit of having knowledgeable Cape Cod real estate agents ready to assist if desired!
It's a great time to buy!
Everyone knows someone, or they have said it themselves: “If only I had bought when…” If your goal is to buy a primary residence or a vacation home, the timing couldn't be better. Remember, the bottom of any market (no matter the length or depth of the curve) isn't apparent until it has passed. While it is not a good time to “buy and flip” properties, if your goals are longer term, NOW is a great window of opportunity. There is more property to choose from and sellers that are motivated are negotiable. And, despite the problems in the mortgage industry, if you are a credit worthy buyer with a decent job history, mortgage options are available and at great interest rates!
Any good news for sellers?
If a homeowner doesn't need to sell in a buyer's market (and many on Cape Cod don't have that urgency), their investment is very secure. Interestingly, many Cape Cod homeowners have recently successfully sold their existing homes and realized exceptional gains if they bought before or early into the “boom” and they are now buying other properties, on or off Cape, at great values as well.
The extended boom created a misconception among younger homeowners that didn't experience previous market adjustments. The fact is, residential properties, whether primary residences or second homes, overall are not a high yield short term investment. But they have always proven to be a GREAT long term investment. In fact, it is the primary way most families build wealth. And as everyone knows, home ownership has perks greater than just economic.
What's in store for 2008?
On Cape Cod, I do believe even more buyers and “wash-a-shore wanna-bees” will decide the time is right to make their purchase and step off the sidelines. It will take some time to absorb some of the existing inventory, so sellers need to be both reasonable and patient. The best economic gurus have differing options, so Darryl and I can't predict the depth of the length of the market curve but we promise to keep you up-to-date on what is real as it happens.
You can expect further market updates throughout the year. Mid-February the 2007 stats for the entire year will be available and we’ll have some insight as to how 2008 is starting out. So bookmark our site for future reference. It's a great resource for everyone who owns Cape Cod real estate… or would like to!
Wednesday, January 16, 2008
Saturday, October 27, 2007
Cape Cod Market Conditions - October 2007
Real Estate Market Conditions
(As reported October 2007 by Shirley Enders)
My marketing reports always consider three levels of statistics – national, regional throughout the Baystate, and then particularly my local market – CAPE COD. Peruse it all or scroll to the information that most interests you!
ACROSS THE NATION
There is not a news cast that doesn’t have something to say on the long-predicted down turn in the real estate market, stories of foreclosures brought on by sub-prime mortgage woes, and the fact that, for most of the country, it is a “buyer’s market.”
Here is a link to a NAR report released October 24, 2007:
MORTGAGE AVAILABILITY IMPROVING BUT HAMPERED SEPTEMBER EXISTING-HOME SALES
Yes, it is a buyer’s market, and there are buyers who are doing just that - BUYING, albeit at their own pace and without a sense of urgency. They are doing their homework before stepping to the plate realizing that housing remains a very good long-term investment.
The mortgage industry is recovering and qualified and creditworthy buyers can find very attractive conventional loans and interest rates. And the mortgage markets will continue to level through the next couple of quarters.
Because home-price trends vary greatly from one region to another and even within metro areas, home buyers and sellers are always encouraged to get accurate and reliable information from their LOCAL real estate professionals.
REGION BY REGION IN THE BAYSTATE
Massachusetts is a beautiful and diverse state – beautiful ocean villages, incredible cosmopolitan cities and suburbs, as well as incredibly beautiful countryside. Consequently our real estate picture varies from location to location as well. The charts below are a telling tale.
Note that these numbers are derived from the Massachusetts Association of REALTORS affiliated Multiple Listing Services as of 10/15/07 and represent the number of sales through the 3rd quarter (January through end of September) and medians for the 3rd quarter only.
(To view charts, click on link at bottom of article)
CAPE COD
The 2007 year started out promising with a 10.4% increase in the sale of single family homes in the 1st quarter compared to the same period in 2006. However, the number of sales started to decline in the subsequent quarters. For condos, it was the opposite. The year started off slowing in condo sales (-21.3% from 2006) and increased 11.8% in the 3rd quarter. Interestingly, for single family homes, through the end of the 3rd quarter, the number of sales are only down ½% over 2006 and for condos -4.5%. Homes are selling… though with longer shelf lives and prices adjusted for the current market.
The median prices have seen a decrease for several quarters and some upward blips on the scale but it belies what homeowners are seeing in their pocketbooks and that is not totally in line with what homeowners are seeing as differentials in their individual pockets. Many homeowners who bought in 2004 or 2005 are often not able to “break even” if they need to sell – the adjustment they need to make is much more than the median fluctuations. Why is that?
A median is the middle number of a group of numbers. That is, half the numbers have values that are greater than the median and half the numbers have values that are less than the median. While a median sales price is usually much more accurate than an average when determining a picture in regions, this agent believes the current median is skewing reality on the Cape. The reason: the huge diversity in price ranges in our region. Right now, there are more homes on the market under $275,000 than was seen on the Cape for a few years. Many of those are bank short sales. Although not jumping off the shelves because the people who would want to purchase them don’t always qualify for the conventional loans, they are selling. There are also many luxury homes (multi-million $$), despite the recent jumbo loan mortgage stress, that are selling. When the high end is selling (even after market adjustments) and the low end is selling it pulls the median in between and tends see smaller fluctuations. In fact, many homes in the $350,000 to $750,000 have longer shelf lives. The properties in this range have buyers who want to buy them because they want to make an upward and downward move – but many have a home to sell first in order to do so which can create a bit of ‘grid lock” – and hence prices adjust accordingly.
(To view charts, click on link at bottom of article)
What’s in store for 2008?
It’s all about supply and demand. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. Perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. In the meantime, sellers need to price realistically from the beginning, be reasonably patient and expect longer shelf-life – and also anticipate the buyers are expecting sellers to be very negotiable on price and/or terms.
Because of a continued high inventory of homes for sale, buyers have plenty of choices and a lot of bargaining power. That, combined with very favorable interest rates, seem to have buyers returning to the market realizing it is a very favorable window of time in which to buy. Buyers sitting on the sidelines for further adjustments should realize that in any previous downward real estate cycle, the bottom was not realized until after it is past! Everyone has a story that begins with “If only I had bought it when it was….”
One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
To view the whole article including all the charts go to http://www.athomecapecod.com/market_conditions.html
(As reported October 2007 by Shirley Enders)
My marketing reports always consider three levels of statistics – national, regional throughout the Baystate, and then particularly my local market – CAPE COD. Peruse it all or scroll to the information that most interests you!
ACROSS THE NATION
There is not a news cast that doesn’t have something to say on the long-predicted down turn in the real estate market, stories of foreclosures brought on by sub-prime mortgage woes, and the fact that, for most of the country, it is a “buyer’s market.”
Here is a link to a NAR report released October 24, 2007:
MORTGAGE AVAILABILITY IMPROVING BUT HAMPERED SEPTEMBER EXISTING-HOME SALES
Yes, it is a buyer’s market, and there are buyers who are doing just that - BUYING, albeit at their own pace and without a sense of urgency. They are doing their homework before stepping to the plate realizing that housing remains a very good long-term investment.
The mortgage industry is recovering and qualified and creditworthy buyers can find very attractive conventional loans and interest rates. And the mortgage markets will continue to level through the next couple of quarters.
Because home-price trends vary greatly from one region to another and even within metro areas, home buyers and sellers are always encouraged to get accurate and reliable information from their LOCAL real estate professionals.
REGION BY REGION IN THE BAYSTATE
Massachusetts is a beautiful and diverse state – beautiful ocean villages, incredible cosmopolitan cities and suburbs, as well as incredibly beautiful countryside. Consequently our real estate picture varies from location to location as well. The charts below are a telling tale.
Note that these numbers are derived from the Massachusetts Association of REALTORS affiliated Multiple Listing Services as of 10/15/07 and represent the number of sales through the 3rd quarter (January through end of September) and medians for the 3rd quarter only.
(To view charts, click on link at bottom of article)
CAPE COD
The 2007 year started out promising with a 10.4% increase in the sale of single family homes in the 1st quarter compared to the same period in 2006. However, the number of sales started to decline in the subsequent quarters. For condos, it was the opposite. The year started off slowing in condo sales (-21.3% from 2006) and increased 11.8% in the 3rd quarter. Interestingly, for single family homes, through the end of the 3rd quarter, the number of sales are only down ½% over 2006 and for condos -4.5%. Homes are selling… though with longer shelf lives and prices adjusted for the current market.
The median prices have seen a decrease for several quarters and some upward blips on the scale but it belies what homeowners are seeing in their pocketbooks and that is not totally in line with what homeowners are seeing as differentials in their individual pockets. Many homeowners who bought in 2004 or 2005 are often not able to “break even” if they need to sell – the adjustment they need to make is much more than the median fluctuations. Why is that?
A median is the middle number of a group of numbers. That is, half the numbers have values that are greater than the median and half the numbers have values that are less than the median. While a median sales price is usually much more accurate than an average when determining a picture in regions, this agent believes the current median is skewing reality on the Cape. The reason: the huge diversity in price ranges in our region. Right now, there are more homes on the market under $275,000 than was seen on the Cape for a few years. Many of those are bank short sales. Although not jumping off the shelves because the people who would want to purchase them don’t always qualify for the conventional loans, they are selling. There are also many luxury homes (multi-million $$), despite the recent jumbo loan mortgage stress, that are selling. When the high end is selling (even after market adjustments) and the low end is selling it pulls the median in between and tends see smaller fluctuations. In fact, many homes in the $350,000 to $750,000 have longer shelf lives. The properties in this range have buyers who want to buy them because they want to make an upward and downward move – but many have a home to sell first in order to do so which can create a bit of ‘grid lock” – and hence prices adjust accordingly.
(To view charts, click on link at bottom of article)
What’s in store for 2008?
It’s all about supply and demand. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. Perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. In the meantime, sellers need to price realistically from the beginning, be reasonably patient and expect longer shelf-life – and also anticipate the buyers are expecting sellers to be very negotiable on price and/or terms.
Because of a continued high inventory of homes for sale, buyers have plenty of choices and a lot of bargaining power. That, combined with very favorable interest rates, seem to have buyers returning to the market realizing it is a very favorable window of time in which to buy. Buyers sitting on the sidelines for further adjustments should realize that in any previous downward real estate cycle, the bottom was not realized until after it is past! Everyone has a story that begins with “If only I had bought it when it was….”
One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
To view the whole article including all the charts go to http://www.athomecapecod.com/market_conditions.html
Monday, February 19, 2007
Cape Cod Real Estate Market Conditions - February 2007
Real Estate Market Conditions
(As reported February 2007 by Shirley Enders)
My marketing reports always consider three levels of statistics – national, regional throughout the Baystate, and then particularly my local market – CAPE COD. Peruse it all or scroll to the information that most interests you!
ACROSS THE NATION
There is no doubt that the real estate market underwent significant changes across the nation throughout 2006 – but here is a serious reality check: Despite all the doom-and-gloom stories and dire predictions, did you know that 2006 was the 3rd highest sales per year on record? The numbers and statistics are in and, according to the National Association of Realtors, across the nation there were 6,480,000 existing-home sales in all of 2006, down 8.4% from a record of 7,075,000 in 2005. The 2nd highest total was $6,779,000 in 2004. NAR began tracking home sales in 1968.
That was “number of sales”. What about prices? The national median existing-home price for all housing types (including single-family, town homes, condos and co-ops) was $222,000 in December of 2006, which is unchanged from December 2005. Note that the median price is determined considering half of the homes sold for more and half sold for less.
While national statistics are interesting, regional statistics are always more reliable for a “picture” of any one particular area. Comparing December 2006 to 2006, existing-home sales in the Midwest rose 4.3%; increased 0.8% in the South, declined 2.8% in the Northeast; fell 9.1% in the West.
Because home-price trends vary greatly from one region to another and even within metro areas, home buyers and sellers are always encouraged to get accurate and reliable information from their LOCAL real estate professionals.
REGION BY REGION IN THE BAYSTATE
Massachusetts is a beautiful and diverse state – beautiful ocean villages, incredible cosmopolitan cities and suburbs, as well as incredibly beautiful countryside. Consequently our real estate picture varies from location to location as well. While the number of homes sold across the Baystate were down considerably in 2006 versus 2005 (from -7.4% in the more affordable westerly areas to -28.4% in the Southeast), the median selling prices of homes were more resilient than one would expect. A major adjustment from the red hot seller’s market of from 2001 to mid-2005 but certainly not a huge “bubble burst”.
CAPE COD
As the statistics comparing 2006 with 2005 show, the Cape Cod real estate has also proven very resilient. While single-family homes sales were down 19.9% the annual median home selling prices dipped a mere -1.9%. For condos, the annual number of sales was down -25.8% but the median selling price rose 2.0%. Why is that? The answer is two-fold.
First, Cape Cod is a unique area from the rest of Massachusetts since 40% of Cape Cod homes are 2nd homes (fewer on the Upper-Cape and more as one travels to the outer-Cape). Many 2nd home owners simply do not have to sell and can be patient knowing many consider this beautiful sandbar to be on the “wish list” of many potential home buyers.
Secondly, real estate is a “slow boat to turn”. 2006 was the year of adjustments as sellers finally realized that the days of double-digit appreciation were gone. As inventories grew and fewer buyers were responding to home offerings, ASKING PRICES decreased and adjusted. Interestingly, once adjusted for the current market, the homes that sold generally sold within 93-98% of final asking prices… resulting in the median sold prices varying only marginally quarter-to-quarter.
What’s in store for 2007?
It’s all about supply and demand. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. But it may take most of 2007 for that to happen – perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. In the meantime, sellers need to price realistically from the beginning, be reasonably patient and expect longer shelf-life – and also anticipate the buyers are expecting sellers to be very negotiable on price and/or terms.
Because of a continued high inventory of homes for sale, buyers have plenty of choices and a lot of bargaining power. That, combined with very favorable interest rates, seem to have buyers returning to the market realizing it is a very favorable window of time in which to buy. Amazingly, during the normally very slow winter season on Cape Cod, quite a number of homes in all price ranges are “pending” sale! And Internet activity of buyers looking earnestly from afar is evident. That bodes well for the spring market!
One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
To view the whole article including all the charts go to http://www.athomecapecod.com/market_conditions.html
(As reported February 2007 by Shirley Enders)
My marketing reports always consider three levels of statistics – national, regional throughout the Baystate, and then particularly my local market – CAPE COD. Peruse it all or scroll to the information that most interests you!
ACROSS THE NATION
There is no doubt that the real estate market underwent significant changes across the nation throughout 2006 – but here is a serious reality check: Despite all the doom-and-gloom stories and dire predictions, did you know that 2006 was the 3rd highest sales per year on record? The numbers and statistics are in and, according to the National Association of Realtors, across the nation there were 6,480,000 existing-home sales in all of 2006, down 8.4% from a record of 7,075,000 in 2005. The 2nd highest total was $6,779,000 in 2004. NAR began tracking home sales in 1968.
That was “number of sales”. What about prices? The national median existing-home price for all housing types (including single-family, town homes, condos and co-ops) was $222,000 in December of 2006, which is unchanged from December 2005. Note that the median price is determined considering half of the homes sold for more and half sold for less.
While national statistics are interesting, regional statistics are always more reliable for a “picture” of any one particular area. Comparing December 2006 to 2006, existing-home sales in the Midwest rose 4.3%; increased 0.8% in the South, declined 2.8% in the Northeast; fell 9.1% in the West.
Because home-price trends vary greatly from one region to another and even within metro areas, home buyers and sellers are always encouraged to get accurate and reliable information from their LOCAL real estate professionals.
REGION BY REGION IN THE BAYSTATE
Massachusetts is a beautiful and diverse state – beautiful ocean villages, incredible cosmopolitan cities and suburbs, as well as incredibly beautiful countryside. Consequently our real estate picture varies from location to location as well. While the number of homes sold across the Baystate were down considerably in 2006 versus 2005 (from -7.4% in the more affordable westerly areas to -28.4% in the Southeast), the median selling prices of homes were more resilient than one would expect. A major adjustment from the red hot seller’s market of from 2001 to mid-2005 but certainly not a huge “bubble burst”.
CAPE COD
As the statistics comparing 2006 with 2005 show, the Cape Cod real estate has also proven very resilient. While single-family homes sales were down 19.9% the annual median home selling prices dipped a mere -1.9%. For condos, the annual number of sales was down -25.8% but the median selling price rose 2.0%. Why is that? The answer is two-fold.
First, Cape Cod is a unique area from the rest of Massachusetts since 40% of Cape Cod homes are 2nd homes (fewer on the Upper-Cape and more as one travels to the outer-Cape). Many 2nd home owners simply do not have to sell and can be patient knowing many consider this beautiful sandbar to be on the “wish list” of many potential home buyers.
Secondly, real estate is a “slow boat to turn”. 2006 was the year of adjustments as sellers finally realized that the days of double-digit appreciation were gone. As inventories grew and fewer buyers were responding to home offerings, ASKING PRICES decreased and adjusted. Interestingly, once adjusted for the current market, the homes that sold generally sold within 93-98% of final asking prices… resulting in the median sold prices varying only marginally quarter-to-quarter.
What’s in store for 2007?
It’s all about supply and demand. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. But it may take most of 2007 for that to happen – perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. In the meantime, sellers need to price realistically from the beginning, be reasonably patient and expect longer shelf-life – and also anticipate the buyers are expecting sellers to be very negotiable on price and/or terms.
Because of a continued high inventory of homes for sale, buyers have plenty of choices and a lot of bargaining power. That, combined with very favorable interest rates, seem to have buyers returning to the market realizing it is a very favorable window of time in which to buy. Amazingly, during the normally very slow winter season on Cape Cod, quite a number of homes in all price ranges are “pending” sale! And Internet activity of buyers looking earnestly from afar is evident. That bodes well for the spring market!
One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
To view the whole article including all the charts go to http://www.athomecapecod.com/market_conditions.html
Friday, December 22, 2006
Cape Cod Real Estate Market Conditions December 2006
Real Estate Market Conditions
(As reported December 2006 by Shirley Enders)
ACROSS THE NATION
Throughout most of the country as well as on this beautiful sandbar called Cape Cod, buyers have had more choices due to a larger inventory of homes, sellers are more willing to negotiate and some who are extremely motivated are offering incentives adding up to a buyer’s market. However, the media is now indicating that buyers, who have been waiting in the wings for the best opportunity, have decided “NOW is a good time.”
Following are just a few of the many links from the economic gurus watching the market and verifying what we as Realtors are beginning to see as more and more homes are “pending” in all price ranges even during the holiday season – traditionally one of the slowest times for real estate sales.
Greenspan Says The Worst Is Over For Housing - November 28, 2006
http://www.realtor.org/RMODaily.nsf/pages/News2006112904?OpenDocument
Pending Home Sales Confirm Market Is Stabilizing - Daily Real Estate News - December 4, 2006
http://www.realtor.org/RMODaily.nsf/pages/News2006120401?OpenDocument
Realtors: Slump to end in ’07 - Boston.com (The Boston Globe online) – by Bloomberg News – December 12, 2006
http://www.boston.com/business/globe/articles/2006/12/12/realtors_slump_to_end_in_07
CAPE COD
Across Cape Cod, the number of sales of both detached single-family homes and condos eased throughout the 1st three quarters (January through the end of September).
Nevertheless, it is also clear that Cape Cod has remained a very desirable place for many to own a home – whether a primary residence or a second home. So far, while the volume of real estate sales is down significantly and we have seen significant reductions in asking prices, the final sales prices have refused to drop in correlation with the reduced demand. For example, while the number of single-family homes sold in the 3rd quarter of 2006 was -25.4% from the same period in 2005, the median asking price from the sale period in 2005 was only -3.5% across the Cape. And this is the 1st decrease in median for 2006! The 1st quarter median was level at 0.0%, the 2nd quarter was +2.5%! And while the year-to-date volume of sales is down for condos, the median sales price is still seeing a positive increase.
What these numbers indicate is that, while we have been in the process of a market adjustment, we are not seeing a big “bubble burst” as many had predicted. Once adjusted for the market conditions, most homes on Cape Cod are selling between 93-98% of final asking prices. Why is that? Many Cape Cod home sellers are 2nd home owners. Many don’t NEED to sell. Many have opted to withdraw their homes from the market or to simply “be patient” once they have adjusted the price to fair market value.
For home owners who do wish to sell in the current market, those who have owned their properties for a while will see a very good return on their financial investment (not to mention the emotional benefits they received from home ownership). They should realize that “average days on the market” data is actually longer than the statistics would reveal as the listing of many homes have expired and been re-listed starting the “count” over again. Pricing correctly from the beginning, preparing and staging their homes to be appealing to buyers is critical. And, once they sell, if they are also going to be buyers in the same market, they also will see some very good values, balancing the pendulum.
What’s in store for 2007?
It’s all about supply and demand and where we are in the cyclical market of real estate. The length and height of each curve is dependent upon so many factors in a world that is constantly changing that not even the best economic gurus can predict with pinpoint accuracy what will happen in a few weeks or months or quarters. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. But it may take most of 2007 for that to happen – perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. It appears this downward curve may be a somewhat long but shallow one. Time will tell. One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
(As reported December 2006 by Shirley Enders)
ACROSS THE NATION
Throughout most of the country as well as on this beautiful sandbar called Cape Cod, buyers have had more choices due to a larger inventory of homes, sellers are more willing to negotiate and some who are extremely motivated are offering incentives adding up to a buyer’s market. However, the media is now indicating that buyers, who have been waiting in the wings for the best opportunity, have decided “NOW is a good time.”
Following are just a few of the many links from the economic gurus watching the market and verifying what we as Realtors are beginning to see as more and more homes are “pending” in all price ranges even during the holiday season – traditionally one of the slowest times for real estate sales.
Greenspan Says The Worst Is Over For Housing - November 28, 2006
http://www.realtor.org/RMODaily.nsf/pages/News2006112904?OpenDocument
Pending Home Sales Confirm Market Is Stabilizing - Daily Real Estate News - December 4, 2006
http://www.realtor.org/RMODaily.nsf/pages/News2006120401?OpenDocument
Realtors: Slump to end in ’07 - Boston.com (The Boston Globe online) – by Bloomberg News – December 12, 2006
http://www.boston.com/business/globe/articles/2006/12/12/realtors_slump_to_end_in_07
CAPE COD
Across Cape Cod, the number of sales of both detached single-family homes and condos eased throughout the 1st three quarters (January through the end of September).
Nevertheless, it is also clear that Cape Cod has remained a very desirable place for many to own a home – whether a primary residence or a second home. So far, while the volume of real estate sales is down significantly and we have seen significant reductions in asking prices, the final sales prices have refused to drop in correlation with the reduced demand. For example, while the number of single-family homes sold in the 3rd quarter of 2006 was -25.4% from the same period in 2005, the median asking price from the sale period in 2005 was only -3.5% across the Cape. And this is the 1st decrease in median for 2006! The 1st quarter median was level at 0.0%, the 2nd quarter was +2.5%! And while the year-to-date volume of sales is down for condos, the median sales price is still seeing a positive increase.
What these numbers indicate is that, while we have been in the process of a market adjustment, we are not seeing a big “bubble burst” as many had predicted. Once adjusted for the market conditions, most homes on Cape Cod are selling between 93-98% of final asking prices. Why is that? Many Cape Cod home sellers are 2nd home owners. Many don’t NEED to sell. Many have opted to withdraw their homes from the market or to simply “be patient” once they have adjusted the price to fair market value.
For home owners who do wish to sell in the current market, those who have owned their properties for a while will see a very good return on their financial investment (not to mention the emotional benefits they received from home ownership). They should realize that “average days on the market” data is actually longer than the statistics would reveal as the listing of many homes have expired and been re-listed starting the “count” over again. Pricing correctly from the beginning, preparing and staging their homes to be appealing to buyers is critical. And, once they sell, if they are also going to be buyers in the same market, they also will see some very good values, balancing the pendulum.
What’s in store for 2007?
It’s all about supply and demand and where we are in the cyclical market of real estate. The length and height of each curve is dependent upon so many factors in a world that is constantly changing that not even the best economic gurus can predict with pinpoint accuracy what will happen in a few weeks or months or quarters. As supply of available homes diminish, because of seller’s withdrawing them from the market or buyers who are purchasing them, the cycle will begin upward once again. But it may take most of 2007 for that to happen – perhaps a small dip in the median prices as existing inventories are used up and then modest recovery and back to a more “normal” balanced market. It appears this downward curve may be a somewhat long but shallow one. Time will tell. One thing is for sure, market histories indicate that real estate prices/investments have always proven to be a good long term investment.
Friday, September 01, 2006
Cape Cod Real Estate Market Conditions - Aug. 2006
The Cape Cod Real Estate Market
(As reported August 2006 by Shirley Enders)
CAPE COD
Throughout Cape Cod, the sales of both detached single-family homes and condos eased throughout the 1st two quarters of 2006.
Year-to-date (January through end of June), the number of single-family units sold was down 18.9% from the same period one year ago. Fewer buyers in the market and more homes from which buyers can choose has relieved much of the upward pressure on prices, resulting in the smallest gains in a number of years.
The Cape Cod condominium market started 2006 with only a slight decrease in number of sales 1st quarter and yet saw a significant gain in median price. However, for the 2nd quarter, the number of sales was down significantly and appreciation leveled with only a slight difference with the same period in 2005. This is not all that unusual in a market where buyers may have more affordable choices in single-family homes from which to choose including a supply in the high $200,000s and low $300,000s.
The motivation of the sellers varies depending on their individual circumstances. Many of the sellers are 2nd home owners and are not necessarily in a hurry to sell and can wait. Others who have relocated or who must move for any variety of reasons might be more “negotiable” than those who will continue to utilize their second home as a vacation home or rental as they have in the past. Unfortunately, homeowners who bought during the upward cycle with too little down are feeling the pinch right now.
It is clear that the recent era of double-digit appreciation is long gone. However, it is also clear that Cape Cod is remaining a desirable place for many to own a home. So far, while the volume of real estate is down significantly and we have seen significant reductions in asking prices, the final sales prices have refused to drop in with the reduced demand. The median held firm for the 1st quarter and saw a slight rise in the 2nd.
What Realtors have noticed is significant reduction in ASKING pricing. Sellers in 2005 were in the old “hot market” mentality remembering days of multiple bids and relatively short market times before negotiating satisfactory terms. However, because of the larger amount of inventory on the market, sellers are now becoming more realistic and once asking prices have been adjusted for the new market conditions, residential properties seem to be selling within 93% to 100% of FINAL ASKING PRICES. Since fewer buyers have a lot to choose from and are taking their time in making decisions, sellers are finding they must be more patient than in prior years.
(As reported August 2006 by Shirley Enders)
CAPE COD
Throughout Cape Cod, the sales of both detached single-family homes and condos eased throughout the 1st two quarters of 2006.
Year-to-date (January through end of June), the number of single-family units sold was down 18.9% from the same period one year ago. Fewer buyers in the market and more homes from which buyers can choose has relieved much of the upward pressure on prices, resulting in the smallest gains in a number of years.
The Cape Cod condominium market started 2006 with only a slight decrease in number of sales 1st quarter and yet saw a significant gain in median price. However, for the 2nd quarter, the number of sales was down significantly and appreciation leveled with only a slight difference with the same period in 2005. This is not all that unusual in a market where buyers may have more affordable choices in single-family homes from which to choose including a supply in the high $200,000s and low $300,000s.
The motivation of the sellers varies depending on their individual circumstances. Many of the sellers are 2nd home owners and are not necessarily in a hurry to sell and can wait. Others who have relocated or who must move for any variety of reasons might be more “negotiable” than those who will continue to utilize their second home as a vacation home or rental as they have in the past. Unfortunately, homeowners who bought during the upward cycle with too little down are feeling the pinch right now.
It is clear that the recent era of double-digit appreciation is long gone. However, it is also clear that Cape Cod is remaining a desirable place for many to own a home. So far, while the volume of real estate is down significantly and we have seen significant reductions in asking prices, the final sales prices have refused to drop in with the reduced demand. The median held firm for the 1st quarter and saw a slight rise in the 2nd.
What Realtors have noticed is significant reduction in ASKING pricing. Sellers in 2005 were in the old “hot market” mentality remembering days of multiple bids and relatively short market times before negotiating satisfactory terms. However, because of the larger amount of inventory on the market, sellers are now becoming more realistic and once asking prices have been adjusted for the new market conditions, residential properties seem to be selling within 93% to 100% of FINAL ASKING PRICES. Since fewer buyers have a lot to choose from and are taking their time in making decisions, sellers are finding they must be more patient than in prior years.
Tuesday, January 03, 2006
Cape Cod Real Estate Market Conditions - Jan. 2006
The Cape Cod Real Estate Market
(As reported December 2005 by Shirley Enders)
CAPE COD
Throughout Cape Cod, sales of detached single-family homes eased throughout the 1st three quarters of 2005. Year-to-date (January through October) shows the number of units sold down 11.6% from the same period one year ago. Fewer buyers in the market and more homes from which buyers can choose has relieved much of the upward pressure on prices, resulting in the smallest gains in a number of years.
(As reported December 2005 by Shirley Enders)
CAPE COD
Throughout Cape Cod, sales of detached single-family homes eased throughout the 1st three quarters of 2005. Year-to-date (January through October) shows the number of units sold down 11.6% from the same period one year ago. Fewer buyers in the market and more homes from which buyers can choose has relieved much of the upward pressure on prices, resulting in the smallest gains in a number of years.
Saturday, March 19, 2005
Cape Cod Real Estate Market Conditions - Feb. 2005
THE CAPE COD MARKET
(as reported February 2005 by Shirley Enders)
The Cape Cod market remained strong throughout 2004. The median price for a single family increased 10.8% and the condo market soared showing 22.8% appreciation 2004 over 2003. Interesting, this appreciation averaged over the year was seen despite the number of units sold in either the single family market (4754 in 2004 versus 4744 in 2003) or the condo market (957 in 2004 versus 901 in 2003) did not increase significantly – far less than other regions of the state. Part of this appreciation may also be explained by the development and/or expansion of luxury condos on the Cape – availability of units that simply did not exist in 2003.
How does one Cape Cod town compare to another? Check out the chart below formulated with data from The Warren Group (chart shows towns in order from Upper to Outer Cape).
With the number of sales remaining steady and more housing inventory becoming available, the market is starting to shift a bit from the frenzied buying of previous years. Buyers that are looking for a home in 2005 are finding they have more to choose from and asking prices are starting to be adjusted a bit as sellers endeavor to be competitive. Sellers are also finding that average days their home’s are on the market is a bit longer. This trend started last fall and, as expected, continued through the slower winter season. Despite the very chilly and snowy winter the Cape is enduring, the Cape Cod pre-spring market has gotten off to a good start as interest rates have adjusted downward once again. It will be interesting to watch the spring market.
(as reported February 2005 by Shirley Enders)
The Cape Cod market remained strong throughout 2004. The median price for a single family increased 10.8% and the condo market soared showing 22.8% appreciation 2004 over 2003. Interesting, this appreciation averaged over the year was seen despite the number of units sold in either the single family market (4754 in 2004 versus 4744 in 2003) or the condo market (957 in 2004 versus 901 in 2003) did not increase significantly – far less than other regions of the state. Part of this appreciation may also be explained by the development and/or expansion of luxury condos on the Cape – availability of units that simply did not exist in 2003.
How does one Cape Cod town compare to another? Check out the chart below formulated with data from The Warren Group (chart shows towns in order from Upper to Outer Cape).
With the number of sales remaining steady and more housing inventory becoming available, the market is starting to shift a bit from the frenzied buying of previous years. Buyers that are looking for a home in 2005 are finding they have more to choose from and asking prices are starting to be adjusted a bit as sellers endeavor to be competitive. Sellers are also finding that average days their home’s are on the market is a bit longer. This trend started last fall and, as expected, continued through the slower winter season. Despite the very chilly and snowy winter the Cape is enduring, the Cape Cod pre-spring market has gotten off to a good start as interest rates have adjusted downward once again. It will be interesting to watch the spring market.
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