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Cape Cod Market Update February 2022

January Review: Market Update

   The Cape Cod real estate market continues its trends of high prices and low inventory, but there may be a change in the air...or not.  The graphic at right illustrates how the market compares to January 2021.  If you can remember that far back, January was the start of the true frenzy before "Percent of Original Price Received" peaked in the early summer (June 2021).  Since then, prices are even higher and inventory even lower. However, we are tracking a few indicators which give a more nuanced view of the market.

First, single-family median sales prices have been hovering right around $650k since October. This may reflect a more typical seasonal market slowdown - something we have not experienced since the start of the pandemic.

Second, new listings are starting to climb after the holidays, again indicating a seasonal upswing in the market. We won't see a more affordable market unless we can increase inventory substantially and adding new listings is the first step in doing so.  Historically we would want to see around 500-700 new listings come on the market in January. In the current clime, the 209 we saw in January 2022 feels like a victory.

Third and Fourth, "Days on Market" has been steadily increasing from 6 days in June 2021 to 13 days in January 2022. Also "Percent of Original Price Received" has been holding steady around 100% since August. These trends point to the market reaching equilibrium, which is good insofar as things may not be getting worse. But it is cold comfort knowing that we have a long way to go before we have a healthy market again.

Finally, supply of inventory is as low as we have seen it. However, January is the traditional bottom for inventory so our fingers are crossed that we will start to see more homes coming on the market.

In other news, mortgage rates are still climbing slowly and, as of this writing, right around 4% for a 30 year conventional mortgage.  We also expect the fed to take action soon to curb ongoing inflation which will impact the housing market and economy at large in a number of ways.

 Whichever seat you are in, whether buying, selling or vacation renting, the professionals at Chatelain Real Estate are here to give you the expert advice you will need to make your transaction a success. For more market data check out our blog category Real Estate Trends.  You can also give us a call any time - we look forward to hearing from you.

Recent Market Summary

    Nov     Dec     Jan  
    Closed Sales    363     370     256  
   Inventory     367     285     231  
   Median Sales Price   $660k     $650k     $660k  
   Avg Days on Market    26     34     34  
   Avg % of Original Price    99.5%     99.9%     99.3%