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Shirley Bahler

Real Estate Market Conditions

(As reported March 1, 2011 by Shirley Bahler)

How did Cape Cod do in 2010?

Looking at the year as a whole, the Barnstable County Registry of Deeds, which includes both commercial and residential sales data, indicates total sales volume in 2010 (entire year) was up 15% over 2009 (entire year) and total sales volume was up 24.8%. However good that news may be, the median sales price was only up negligibly - approximately 1/2 of 1%.

Looking at data from Massachusetts Association of Realtors allows us to target only the residential real estate market -- and then further differentiate between single family homes and condominiums. In 2010, single family homes sales were up 7.4% (3,119 in 2010 versus 2,904 in 2009) and the median price of a single family up 7.2% (to $343,000 from $320,000). In 2010, condominium sales saw an incredible increase in the number of sales -- up a whopping 45.9% (648 sold in 2010 versus 444 sold in 2009). Interestingly, the median sale price of a condominium was only up 1.4% (to $248,500 from $245,000).

Okay... so that was Cape Cod.
How do we compare with the rest of the state?

Cape Cod is doing very well indeed! Check out these comparison charts.

Note that statistics can be very useful for DETERMINING TRENDS AND MARKET DIRECTION. A rise in average or median pricing does not necessarily indicate that we are seeing appreciation in any particular price range or for any particular properties - but that homes in all prices ranges are selling. Most agree that here on our beautiful sandbar we have likely and hopefully bottomed out and may soon see a slow climb back up. We will know that only in retrospect.

What about foreclosures?

The market is still experiencing challenges -- such as short sales, foreclosures and its share of bank-owned properties (REOs). The Barnstable County Registry of Deeds reported that there were significantly more foreclosure deeded in 2010 (736) versus 2009 (481). That represents a year over year increase of 53%! However, it should also be noted that the trend started to reverse in the last quarter of 2010 and has continued into the beginning of 2011. So there are POSITIVE SIGNS for a slow turn in this area as well. Is this just a blip on the scale? Time will tell - and I will continued to keep you informed.

How does it look for 2011?
Whew! It has been a real New England winter.... even here on Cape Cod where the weather is generally a bit more temperate. That certainly affects whether buyers want to be out there looking at houses. Yet, despite the icy conditions, the good news per the data from the Barnstable Registry of Deeds was that the Cape is seeing some very positive figures as we started off the New Year in January. February 2011 remained very icy and cold which dampened sales a bit over February 2010. But the weather is warming and the hot sheets indicate a number of properties going under contract.

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 a still a selection of properties to choose 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! How long with the favorable interest rates last? It is expecting they will start increasing soon.

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 secure but, even once prices stabilize, it will be quite a while until we are starting to see appreciation. Those that have their homes on the market are likely encouraged by increased number of showings on those properties that have been priced for the current market. Even properties that have been on the market for some time are going under agreement and finally selling. It is clear that an over-priced property is a waste of time as homes must “appraise” in order for buyers to buy.

It is said, when it comes to real estate, that LOCATION is the most important thing. In fact, it is the second most important thing – the first being timing. Many Cape Cod homeowners have recently successfully sold their existing homes and realized gains if they bought before or early into the “boom” – even if they aren’t netting what they would have a few years back -- 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.

Stay updated!

First and foremost, I owe those of you who look forward to reliable market updates an apology. While I'm a stats nut and watch the market data regularly and can personally see the trends as they unfold in the real estate market, I was remiss last year in regularly updating that information. This year I will be updating the marketing report on a quarterly basis. In the meantime, if you, your family or friends ever have a question pertaining to Cape Cod real estate, please do not hesitate to contact me. I'm never too busy for your referrals and look forward to being of assistance.

If you have a question on the Cape Cod real estate market that is not addressed here, don't hesitate to call 508-888-8999 x144 or email to shirley@AtHomeCapeCod.com.

Your complete Cape Cod
real estate resource.

Shirley Bahler

4 Merchants Square, Suite 7
P.O. Box 1780
Sandwich, MA 02563
508-888-8999 x144
800-878-3722 (toll free)

Email: Shirley Bahler

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