After a busier than usual late fall we are starting to see the seasonal cooling off around the holidays. Closed sales, inventory and median sales price were all down in November as both sellers and buyers tend to back off this time of year. We also note that with 5.8 months supply of inventory the market is healthier [...]
Median Sales prices continue to climb in both the single family and condominium markets and, as a result, we saw a considerable drop in the affordability index for Barnstable County in October. The inventory of homes dropped less than 2% since September and the current months of inventory, 6.6, is considered a healthy [...]
September saw further gains in inventory with 6.7 months supply of single family homes. Since September and October generally experience the last of the summer listing frenzy before the winter slump and, with the rising interest rates and other market trends leading towards a more buyer favored market, the growth in [...]
August Review: The big news here is that inventory continues to grow. We currently have 6.4 months of single family home inventory in Barnstable County as well as increasing number of homes for sale (labeled as inventory in the table below). Generally a market with around 5 and 6 months of inventory is considered healthy so we are [...]
June Review: The numbers for June continue the ongoing trends... compared to last year, median sales price of single family homes is up 10%, days on market is down 20% but inventory is even for the first time since 2009. Additionally, when we look at the first 6 months of 2018, months supply of inventory is up 40% from January, which may [...]
May Review: Last month was characterized by the Spring market frenzy. While 399 closed single family homes may not seem like much of a frenzy, compared to the January-April dearth, it was. Overall though, sales and inventory are down compared to this time last year, which we believe says more about the unusually busy 2017 market leaving us [...]
After examining the process of selling on Cape Cod, it is now time for a buyer's perspective. For more information on selling your home, start at Part 1 of the series here.
"That's wonderful news! Owning a home is a dream many people want to realize and we take great pride [...]
We're back for another installment of 'Ask Agnes'. Recently we have had a lot of interest regarding the process of selling your home on Cape Cod. We'll start this series with the process of selling and be sure to hit relevant points to consider when listing your property including when, with whom, and why.
"'Should I sell' is probably the most important question to consider for any potential seller. Before considering a move, research the time and cost for changing your current home into one more suited to your needs. If you love your current location but need an extra 200 sq ft then an addition or reconfiguration may be a better idea than a move. For more information on choosing a contractor check out our blog - 5 Things to Consider When Hiring a Contractor. However a job relocation, undesirable location, or already maximized space in your current home are all reasons that necessitate a sale.
"Once you have made the decision to sell, timing can be critical. Luckily a lot of the Cape Cod market has such low inventory right now that a home priced correctly for its condition and features can sell quickly regardless of the listing start date. Additionally we ran some numbers for the previous few years and there is no significant correlation between how close you get to your original asking price and when you list your house. However, houses that list in the early spring and late summer spend less time on the market. And the less time your home spends on the market leads to fewer mortgage payments, electric bills, insurance (etc...) so ultimately, more money in your pocket."
"Make a plan for the future: The most important question is where will you go once your home sells? If your home is not a primary residence then this question may already be answered, but if your home is rented it is important to make sure tenants have somewhere to go as well. Another thing to consider is your financial situation and how long you can afford to wait for your house to sell. The reality is that some properties take longer to sell than others but be sure you have enough money to pay all mortgages, taxes and repair bills that may come up. Just because you are selling doesn't mean you are not responsible for putting on a new roof or repairing damage due to flooding. Working with a local agent on a pricing strategy to meet your timeline is critical.
"Prepare the property: While squeaky hinges and jiggly doorknobs are things we all deal with in our own homes, now is the time to address each item on the punch list (a great example of a well prepared and kept property is 9 Osborn Snow Dr, East Dennis). You would laugh at how often some of these items are on the original inspection report from years (sometimes decades) ago when the owner bought the house. But don't feel bad, this is the reality of owning a home (and I have a few of these items still on the list too...Ed...). Also cleaning and appropriately staging your home highlights its best qualities. A pile of folded clothes on the bed during a showing is not as detrimental as a three foot stack of newspaper clippings on a cluttered and dusty desk. Unique furniture, expensive menageries, and unfinished projects don't sell houses. Let the best of your home shine through (and finish that 10 year old jigsaw puzzle in your new house). The same goes for landscaping. Trim the hedges, cut the grass, weed the garden, mulch the roses. Check out some suggestions in an older blog on exterior improvements. Curb appeal is the second impression of your home (the first is the photos!) and cannot be underestimated in importance."
Thanks Agnes, as always we appreciate your years (but not too many) of insight into the local market. For the next installment we'll be examining how to choose a real estate agent and what having your house listed is actually like. As always don't hesitate to contact us with questions about all of your real estate needs.
Our goal in this series is it to help you understand how we interpret markets on the Cape and how this informs our recommendations when developing pricing strategies. For our final installment we will evaluate the Cape Cod market for the past 3 years (starting in October 2014).
First the inventory of single family homes has been dropping over the past few years. This factor coupled with rising median sales prices and fewer days on market indicate an accelerating market in Barnstable County. Another interesting factor to note is the significant decrease in homes for sale over the past year and that 2017 did not show as stark a seasonal bump in inventory as is typical. Additionally the affordability index is trending towards less affordability on Cape Cod.
What's our take? If you are thinking of buying, our advice is not to wait. Interest rates are at historic lows and, if the current market trend continues, homes will continue to become gradually more expensive. The long-term news isn't all bad, though - there are numerous local, state, and federal initiatives in the works which plan to ease the affordability pinch here on the Cape. For more information, check out this local housing forum featuring none other than our own Ned Chatelain. But you don't have to wait for new programs to buy something - give us a call and we can put you in touch with the top-notch mortgage brokers we work with who can walk you through low-downpayment and no-downpayment mortgages, first time home-buyer programs, or local lending incentives that can make the difference between buying this year or buying in three years.
On the other hand, If you are thinking of selling, this is good news for you. The Spring is an excellent time to get your house on the market and winter is the best time to get it ready. Give us a call today if you are interested in a home valuation and comparative market analysis.
Our goal in this series is it to help you understand how we interpret markets on the Cape and how this informs our recommendations when developing pricing strategies. In this installment we will be evaluating a specific market - single family homes on the water, Barnstable to Orleans (Homes on Water Bodies & Homes on Beaches). Immediately we notice some relevant trends.
First the median sales price for these homes is much higher than the Barnstable County median at $1,200,000, yet take far longer to sell with a median days on market of 95 (and an average of 231). To be fair these are expensive waterfront homes, occupy a smaller market niche, and ultimately take longer to sell. We also see, based on the bar graph at left, that the group of fastest selling homes (43 days or less) sell for 94% of the asking price - as compared to Brewster in Part 2, those fastest selling homes did so in 25 days or less with 99% of the asking price.
Getting back to the waterfront case study, the homes that take longest to sell require price reductions on the order of 12% off the original asking price and only sell for 79% of the original asking price. What we see here is that people tend to price waterfront homes very aggressively (high) and require significant reductions before they sell. Furthermore these homes are sold for far less than the original asking price as well as the current asking price - something to think about if you are in the market for a $1,000,000 home on the water. Consider also that many of these sellers have a price in mind and are willing, can afford, and believe that waiting will get their asking price; however, as is evident in the data, waiting longer does not return a higher sale price.
We discovered one more interesting thing here. When analyzing certain markets it is useful to know how square footage affects sale price - and it may not be what you think. In this market (and this is not always the case) the larger the home the fewer dollars per square foot ($/sqft) it returns. Using the trend line on the graph we would predict that a 9000sqft home would sell for about $500/sqft whereas a 1000sqft home would sell for closer to $600/sqft. Mind this is a loose relationship but it is a trend that reappears in many markets. The takeaway? Larger waterfront homes are having a harder time selling than smaller ones - price reductions may be warranted earlier in developing a sales strategy.
Check back next time for our final part in the series: some long term analyses.