May and June Review -- Double Issue:
Well we're back after taking a brief hiatus last month. So what's been going on in the Cape Cod real estate market for the past two months? Much the same as before but with some signs of change. Let's jump in.
The real estate market lacks a healthy amount of inventory. This has been the story for years, even before the pandemic; however, COVID exacerbated the problem and the market has not yet recovered to pre-pandemic levels.
Median home sale price continues to increase. Lack of supply and high demand continue to inflate prices. While we can't say if prices will continue to rise, we don't expect them to fall much in the near term.
Larger market forces may be starting to impact the Cape market. Rising inflation and mortgage interest rates are making home buying even less affordable and have driven some prospective buyers from the market. After years of being priced out of homes or losing out in bidding wars, some buyers are taking a break from their home searches. We are seeing evidence of this because the "months supply of inventory" has been slowly increasing since about February. How is this possible even though inventory is down? Well this metric takes into account the relationship between pending sales and inventory over a period of time (12 months). Because pending sales have been declining it indicates that demand is also down. If demand significantly slows, we expect to also see average days on market start to increase as well as a decline in the % of original price received - so we'll be watching those two metrics closely over the coming months.
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.
| Mar | Apr | May | June | |
| Closed Sales | 225 | 247 | 296 | 324 |
| Inventory | 274 | 324 | 428 | 504 |
| Median Sales Price | $651k | $725k | $749k | $711k |
| Avg Days on Market | 36 | 37 | 28 | 17 |
| Avg % of Original Price | 101.8% | 103.1% | 104.4% | 104.2% |