Signs and statistics point the way for a rebounding Spring market on Cape Cod. Blessed with a mild winter so far, our Spring market seemed to 'take off' during the normally quiet holiday season.

January statistics show an amazing burst of activity-

Single Family units sales activity is UP by an astounding 26% over January of 2011.Properties with accepted offers to purchase are UP by even more amazing 37%. These properties likely to close in the next 30-60 days, so 2012 appears to be the year of recovery in the Cape Cod real estate market.

Looking ahead: we don't see prices jumping, as demand is still not strong enough to reduce the inventory to 'balance' the market between Buyers and Sellers. Financing is still difficult for Buyers, and since the selling prices in January 2012 (compared to 2011) dropped by 10%, it is clear that pricing is key to success.

Second home buyers are a strong force in this market, and the best 'beach' properties are selling well-it is not too early to find that home by the sea for Summer 2012!

Call or email me to discuss why Seller and Buyers have relied on my professionalism and expertise for 26 years -Selling Cape Cod Real Estate...One Yard at a Time (tm)

Deb Schilling
Find me on Facebook-www.facebook.com/CapeCod1YardAtATime

Cape Cod Market conditions for late 2011

Our Cape Cod market continues to show strength in the last 2 quarters, as Buyers overcame concerns about economy and snapped up the best available properties. Cape Cod sales volume in 2011 is down about 10% compared to 2010 and median price dropped 2% for the same period. This is reasonable for the current situation, and is good considering 2010 sales were buoyed by the government tax incentives. 2011 has had no artificial buying stimuli, so the sales this year have been truly free market.

Many Buyers and Sellers recognize that the ‘bottom’ is here-especially when calculating the cost to purchase-with interest rates at historic lows. The Second home/vacation buyers seem to be aware of this and have made a significant contribution to real estate sales this year. We have seen significant interest in beach properties, village properties in Cotuit, Osterville Centerville, and Marstons Mills

Pricing and preparing a home for sale has never been more crucial-Buyers will buy the ‘good’ properties-priced well and prepped for showing. Sellers realize that condition sells and pricing to the market is key to success.

Consumer confidence appears to be growing slowly, and this will likely increase the desire to make the investments that have been postponed due to uncertainty and negative news.

2012 should be a year of gradual improvement in the Cape Cod real estate market, as interest rates should remain low and prices for properties will have hit bottom and may start to rise by Mid Year as demand reduces the inventory backlog. We don’t expect prices to rise much in the next year, but more desirable locations and appropriately marketed properties could exceed this modest expectation.z

Until you can return to the Cape (or even better buy your vacation home here) enjoy this scene overlooking Nauset Marsh from Fort Hill area of Cape Cod National Seashore on a glorious November day

Real Estate on Cape Cod-Been down so long it looks like up!

Prices to fall further vs real estate prices on uptick, interest levels rising vs affordability reduced. Jobs uncertain vs no double dip recession. Recent news is more optimistic, for sure, but always tempered with ‘as long as…’ or ‘but if’.

I have been digesting both the last quarter 2010 summaries and the 2011 outlooks, and the picture is not clear. Cape Cod’s real estate market is distinct from the rest of Massachusetts, as we are a ‘vacation home’ community within commuting distance to a major city with strong and diverse employment.

I would be naïve to suggest that Cape Cod Real Estate sales are not vulnerable to future economic uncertainty, but we may have taken our ‘hit’ and could be heading up in sales volume and average price in 2011.  Since January 1, 2011, we have had a substantial increase in Buyer traffic, precipitated by jump in interest rates from their 2010 lows, and by the prospect of significant activity on both the very low end of pricing and the luxury property segment. Sandwiched in between-the mid range houses from $300,000-1,000,000 there are buyers looking, but carefully considering each decision, and awaiting price reductions to motivate them to act.

In summary, we see bright signs ahead, with 2011 likely to be the transition year to a modest real estate recovery in 2012 for Cape Cod real estate. Asking prices on individual properties are not set to rise, but as I have said before, properties that show very well and are priced for the current competition have an excellent chance of getting sold in early 2011. See Chart below (from Cape and Islands MLS reports) showing inventory levels in December dropped to only 10 months at the current rate of sales-a great sign to demonstrate movement in market. If you have questions, or would like more information about the Cape Cod Real estate marekt, contact me at deb@onestophomes.com

Deborah Schilling,
…One yard at a time –selling Cape Cod real estate for 25 years, with focus on Villages of Barnstable and beyond, including Marstons Mills, Cotuit, Osterville, Centerville, Hyannis, Barnstable and West Barnstable.