The Cape Real Estate market continued to show signs of a ‘return to normalcy’ in 2024. The average number of days on market rose to 41, the highest level since 2021. Percent of asking price received by sellers dropped to 96.6%, the same level we saw in 2017. And the seasonal bumps in activity that disappeared after COVID began to emerge in the spring and fall. In other words, houses are selling slightly more slowly, for slightly less than asking price, and slightly more frequently in the spring and fall, than they did in 2023. “Not only that,” adds Chatelain Real Estate sales manager Ned Chatelain, “but we are seeing fewer multiple offer situations than in previous years. When you do get multiples, you get maybe 2 or 3 rather than 10 or 12. It is allowing buyers to shop around a little more.”
However, we have a long way to go before reaching market equilibrium. Buyer demand continues to outpace available homes for sale, driving a 5.3% increase in median sale price last year. This is the smallest increase since 2020, but prices have gone up a total of 150% since then. This has caused real affordability concerns for low and moderate income households. When we look at the number of homes for sale we see a similar story - there was a 15% increase in new listings last year which seems encouraging. However, in real numbers that equated to only about 550 units for sale. In 2014 we would have had 3,200. “Until we see significant increase in the number of units available for sale, we are likely to see prices continue to rise and a continued affordability crisis for residents” says Ned.
The million dollar question is where those units will come from. With current interest rates over 6%, home prices at record highs, and most homeowners paying record low pandemic-era refinance rates in the 2-3% range, folks are justifiably hesitant to move. We see some potential for new units from elderly homeowners downsizing. Additionally, the increasingly competitive short term rental market may force some second homeowners to place their home on the market. But in the short term, it is difficult to see a path towards a truly balanced market in the medium term.
The bottom line is that the Cape Real Estate market continues to be increasingly complex and increasingly costly. Expert representation by an experienced Realtor is more important than ever. To discuss how current market trends impact your family’s plans to buy or sell a home on Cape Cod, give us a call today. We look forward to hearing from you.