Happy 2013! I’ve been asked about the status of the Brewster house and barn in the June 26th post, and happily it is sold. As mortgage rates hit historically low rates, properties on Cape Cod that are priced correctly and Staged are being snapped up quickly. Land is beginning to move again as well. Four homes in my immediate area sold recently for surprisingly high prices. In the third quarter of 2012, days on market for residential property decreased only 2.6% over the previous 3rd quarter, and median values decreased nearly 7%, but volume sold is up over 19%. See the entire report here.
Previously I wrote: “Yesterday while perusing the sales I saw quite a few cash sales, including a $ 1.4 million sale in Orleans.” Today I saw a $ 2.675m cash sale, again in Orleans. Maybe a trend is indeed building. The recent $ 10 million cash sale in East Dennis I would consider an anomoly. I also saw a FHA sale yesterday. It’s been said that FHA is the new subprime, it will make homeownership available to many with as little as 2% down. I remember my first home was purchased with an FHA loan. I believe in homeownership for all qualified people, but hope that people don’t overextend in a whole new way. I don’t believe that there are a spate of million plus cash buyers, but there seems to be an increase in the $ 200-300,000 range. Will you be financing your home purchase or paying cash?
The Cape Cod and Islands Association of Realtors reports that both numbers of sales and average sales prices are down against last March. This is no surprise to me as included in those sales numbers are a plethora of bank owned and short sale properties dragging values down. It has been a rather sad Spring, and while 811 properties were sold in the first quarter, 6,352 remain on the market. The opportunity market continues for both buyers and sellers, as people are here and willing to buy, and depending on when the sellers themselves bought it is a good time to extract themselves from a costly propert and downsize or upsize as the case may be. NPR reported today that the Fed will consider yet another rate cut, and while that does not necessarily translate into mortgage rate reductions, it tends to stimulate spending and create consumer optimism. What does this mean for you? If you can, buy. Real estate is still a good LONG TERM investment. They aren’t making any more Cape Cod, quite the opposite. Unique and exquisite properties will always hold their worth. I can show you some that are indeed special. And if you want a place for family and friends to mill about and BBQ after dragging the floats back after a long day riding the waves, I have that too…on sale.