We always try to understand the real estate market on Cape Cod in a variety of ways and to explain our understanding to our clients.  For the first installment of this series we will be looking at Barnstable County as a whole and explaining an interesting trend that carries over into many markets on Cape Cod.  Our goal is to help you understand how we interpret the market here on the Cape and how it informs our decisions when developing pricing strategies.

    To begin we found residential property sales from $100,000 to $2,000,000 for the past 365 days and calculated the median days on market and sales price.  In this case median days on market is 55, median sales price is $380,000.  Why median and not average? When describing a set of data that is not normally distributed (a bell curve), average is not necessarily the best way to describe the central tendency of the data.  The median says that 50% of homes that sold were equal to or greater than that price, and the other 50% were less than or equal to that price.  This helps us get a better picture than the average for what a typical house sells for on Cape Cod (since only a few expensive homes will pull this average up).  Also for the days on market the same discrepancy is apparent: median is 55 days, average 100 days.  The average in this case is skewed above what is typical because some houses take a very long time to sell.  So we stick with median for these cases.

    The other thing we find is that the longer a house stays on the market, the less money it makes...in two ways.  Notice the graph at right.  The pairs of bars represent the fastest selling homes (selling in less than 26 days), the middle (26-118 days) and the slowest selling homes (more than 118 days).  The red bars are the current price as a percent of the original list price.  The blue bars are the sale price as a percent of the original list price. What we see is that the fastest selling houses don't reduce in price (red = 100%) and sell for very near the original asking price (98%).  The next set of homes reduce their current price to 97% of original and sell for only 94% of the original.  The last group reduce the price yet again and sell for even less than the original asking price.  The trend is towards weaker offers generating lower sales prices.

    The lesson is three fold.  First, by pricing your home well from the start you are increasing your chances of getting a better offer.  Second, leaving your home at a high price for too long tends to return lower offers - a principle which is more pronounced the longer your house spends on the market. Finally, by using qualified local real estate agents who understand the local markets you are maximizing your chances of pricing your home correctly from day one.  One final point, agents do not determine the price of your home, the market does.  

    If you are curious about how your home will compete in the local market please contact us today or click here to get a home valuation.

Fall is a great time to consider more significant home improvements including bathroom and kitchen remodeling, exterior residing and shingling, and landscaping upgrades and improvements.  With the holidays still months away many projects can be completed before guests, turkeys, and trees begin occupying your time.  If your project is a more [...]

  As the days get shorter and the prospect of fall becomes ever more apparent, outdoor landscaping improvements seem less daunting.  Cooler weather makes outdoor projects more enjoyable and undertaking even simple jobs can add significantly to the curb appeal of your home.  The National Association of Realtors published a report relating to [...]

We have three excellent open houses this weekend as well as numerous others throughout the Cape.  We are featuring the wonderful property on 9 Osborn Snow Drive, East Dennis.  From the fruit orchard, to the steam shower, the outdoor pizza oven and the sprawling deck, everything about this home exudes luxury.  Perfect for entertaining [...]

We have just introduced a new informational page on the website, 'Homeownership on Cape Cod'.  We will be adding more information to it in the future, but for now here is the third part of that page with some useful information regarding basements, sump pumps and dirt roads.  As [...]

    We think this article by Tom Vanderbilt at Outsideonline is particularly poignant.  While it characterizes a mountain town in Colorado the parallels to Cape Cod are astounding.  Vanderbilt describes how the growing trend in short term rentals through companies like Airbnb is slowly eliminating potential housing for residents.  The problem is one of economics: if you can own a home in a desirable area, why would you rent it on a long term basis - yearly for example - when you can rent it on a short-term basis, through a company like Airbnb, and generate more income?  Vanderbilt follows a local father struggling to make ends meet, working multiple jobs, and worrying about where he will live when the tourist season starts...sound familiar?  What makes the Cape such a great place to live also makes it a great place to vacation and it is difficult to dissuade a homeowner from the extra income potential.

    On Cape Cod we are finding that more and more homes are being rented just for the summer, making them unavailable for long term lease seekers.  In fact, in response to the decreasing supply of affordable housing on Cape Cod, CCYP is holding a design competition for architects (see the brochure here).  The contest encourages a repeatable homes design balancing 'affordability, utility, adaptability, durability and suitability for the target demographic (young professionals, working families, year round residents).'  Other initiatives on Cape Cod seek to remove restrictions on building and renting accessory dwelling units (more commonly known as in-law apartments) to increase the amount of available housing.  This link comes from the local MLS on Cape Cod and describes the problem well.

    While the economy plays a large roll in housing trends on Cape Cod we are curious to see where the future will lead.  On one side of the coin locals will be increasingly priced out of the market and the Cape will be a resort where service personnel commute from less expensive housing elsewhere.  On the other side of the coin the development of Cape Cod will find a balance between the tourist economy that sustains the region and more permanent solutions.

If you are interested in learning more about housing on Cape Cod and buying or selling property please contact us today with your questions.

We have just introduced a new informational page on the website, 'Homeownership on Cape Cod'.  We will be adding more information to it in the future, but for now here is the second part of that page with some useful information on septic systems, building norms and utilities.  As always [...]

We have some excellent open houses this weekend.  From a just listed charmer in South Yarmouth to a luxury home in East Dennis overlooking beautiful Quivet Neck, we invite any and every buyer to come and take a look.  For a list of all upcoming open houses in the Cape Cod are, [...]

    Don't miss out on this well-kept, immaculately maintained 2+ bedroom saltbox at the end of a dead-end street in super-convenient South Yarmouth.  Fresh kitchen and 2 completely updated full baths.  Flexible floor plan with cathedral living room and en-suite master. Level, low maintenance yard, with deck and outdoor shower.  .4 miles from [...]

We are having an open house extravaganza this weekend!  Four wonderful properties featured from Barnstable Village to East Dennis.  If you are interested in viewing all open houses in the [...]