It’s all about the punctuation. In 2023 this column concluded with exclamation points: Huge increases in median price! Low inventory! High interest rates! In 2024 it concluded with question marks: Can prices continue to go up? Will interest rates ever come down? Is the COVID market over? Now in 2025 we’re ending with a period: This is the new normal.
In 2025 the Cape Real Estate market showed continued consolidation of 2024 trends. Inventory remains low (530 active units at time of writing), but days on market has climbed to its highest monthly average (46 days) since prior to COVID. Similarly, percentage of sale price received by sellers has returned to it’s long-term average of approximately 95%. This continues the trend that started in 2024 of homes selling for slightly less than asking price, after more days on the market.
But what about median home price? We’re happy to report that median price did tick slightly up to $739,000, 3.5% over 2024. This is the smallest increase since 2018-2019. This is good news because it means that homeowners are still building incremental equity, but without outpacing buyers’ purchasing power as quickly as has recently been the case. That said, affordability remains a dire concern both here and elsewhere in the country. Home prices on the Cape and Islands have more than doubled since 2015, while Barnstable County median income has only risen by 47% in that time.
There is some good news for buyers. The average 30-year conforming mortgage rate dipped this year to it’s lowest point since the Federal Reserve began sharply raising their benchmark rates in 2022. With home prices as high as they are, even small fluctuations in mortgage rates can impact a buyers’ bottom line (and purchasing power) by hundreds of dollars a month. Also, the Affordable Homes Act of 2024 included a provision that gives buyers an affirmative right to a home inspection – buyers can no longer waive a home inspection before their offer is accepted. This is good news for buyers who may not have the cash needed to take a risk on unknown costly repairs.
Overall, the market has stabilized in a strange place. In comparison to pre-COVID, we have far fewer homes on the market selling for twice as much money at about the same pace after similar reductions in price. A decidedly mixed picture. But stable is good – it means that, whether you are buying or selling, you have the time to make a deliberate, well-informed decision. And there is no better firm to spend that time with, or to get that information from, than Chatelain Real Estate. Call or email any time to put us to work for you!