Do you have any predictions of what the Cape Cod market will be like this year?

Asked by Barbie White Kimball, Cape Cod Mon Jan 14, 2008

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Don Tepper’s answer
Don Tepper, Agent, Burke, VA
Mon Jan 14, 2008
Ed clearly knows more about Cape Cod than I do, but I am familiar with the Cape--especially the Falmouth, Hyannis, Barnstable, and Marstons Mills area. I'd be cautious regarding the market, mainly due to broader economic conditions. First, in general, it looks as if the national economy may be slipping into a recession. (I think it probably did enter a recession a couple of months ago.) Even if it's not, by economic definition, a recession, I think economic activity will slow down considerably. And that'll affect the Cape in a number of ways. For those who live on the Cape and are dependent, directly or indirectly, on tourists, it's possible that tourist traffic will be down. Couple the recession and economic uncertainty with high energy prices (the cost of gasoline for people driving, the cost of aviation fuel for people flying either to the Cape or to Boston), and I think 2008 will be somewhat "off."

For those who aren't as dependent on the tourists--who either work in Boston or work in a non-service area on the Cape--I'd still expect a softening in the market due to the general economy.

Ed's right: Interest rates are great, and should remain so. And there are plenty of motivated sellers. Your difficulty could come if you have a property you need to sell, or if you need to sell your new purchase within the next several years.

Hope that helps.
2 votes
Tatiana M. D…, , 02670
Mon Jan 28, 2008
Optimists are telling us there will be a rebound in the national economy in the second half of 2008. Thus, buy now, take advantage of the low interest rates, lower prices, high inventory...

Pessimists are telling us prices will continue to drop in 2009 and even in 2010 before stabilizing. Who knows what the interest rates will be then? No one knows with any certainty what the future holds. If one finds the home of their dreams today, one should buy it because it may not be there next year.

Personal observation: There are more buyers at this time than in either 2006 & 2007. Inventory is shrinking. This indicates a shift in the market.

The question is do you need to buy or sell today? Are you looking to speculate, which is always risky, no matter what the market conditions are. What are your goals? Real estate investments usually do well over the long term. What we are seeing now is an adjustment in market prices.
Web Reference:  http://www.westdennisera.com
1 vote
Underwater, Home Seller, Dallam County, TX
Thu Feb 26, 2009
"The Cape cod real estate market is steady and strong."

Nope. Cape Cod has dropped like a rock since this "Pro" gave you this "advice."
0 votes
Susan Brown &…, , 02563
Mon Feb 25, 2008
We feel the market is picking up since we are in the spring market.... we are selling and listing properties with lots of buyers out there. The media always is so negative on home sales, however, if you have to sell you will have to lower the price to what the market says your home should be, due to foreclosures and bank owned and short sales the sellers who are just trying to sell and move on are having a difficult time. This is a goof market if you are thinking of buying or selling now on Cape Cod!
0 votes
Sean Fields, , 02653
Sun Feb 24, 2008
Agnes, I can answer only for my area of the Cape(lower and outer) and the best way to do that is to give you the current market activity for you to use as a guide:
Orleans 14 pending sales median price: $762,000

Eastham 16 pending sales median price: $489,700

Brewster 12 pending sales median price $392,000

Chatham 19 pending sales median price $1,149,000

Harwich 21 pending sales median price $379,900*COURTESY CAPE COD AND ISLANDS MLS STATS
These numbers are in line with the best of the last few years....
It has been my experience so far this year that speculatively priced properties(that is pricing with little or no precedence) will be rejected by the market and those more thoughtfully priced will still go to multiple offer(we had three of those this week alone in my office). We don't lack for buyers right now, we lack for buyers that are not value conscious.
0 votes
Eric Grossman, , Osterville, MA
Sun Feb 24, 2008
Hi Agnes,

My advice would be to take your property off the market and wait for better market conditions so you can re-coop your costs and walk away with what you want. Unfortunately, today's buyer doesn't care what you put into the property. The astute buyer is looking for a good opportunity. If your's isn't the one, they will move on to the next property.
Web Reference:  http://www.sandbarhomes.com
0 votes
Tatiana M. D…, , 02670
Fri Feb 1, 2008
Hello Agnes,

Upon reading your response to Peggy, I now realize you are a seller. I understand how you would like to recover your maintenance and upgrade expenses and net the most out of the sale of your cottage. Unfortunately, neither real estate agents nor sellers set the selling price of any property in any market. A piece of real estate is only worth what one is willing to pay for it.

It is my personal experience when you are absolutely ready to sell your property to price it as closely as possible to the value determined by a Comparative Market Analysis conducted by a seasoned Real Estate Professional in your area. I usually got 3 opinions of value for comparison purposes.

By "overpricing" your property, it will sit on the market for a long time (6 mos.+) and unfortunately will end up selling for less than if you had priced it right from the very beginning. It is a proven fact. I fell victim to that in a rising market!!!

If the value determined by the Comparative Market Analyses does not satisfy your financial needs and you are able to hang on to your property, do not waste your time and efforts on trying to market it. If you can afford to wait for the market to turn around, then do so. That can take several years. On the other hand, if you want to move the property now, then you have to accept the price the market bears. I hope I am not being too harsh. I do not want you to be disappointed as I was and lose in the end.

Tatiana Daniels
Web Reference:  http://www.westdennisera.com
0 votes
Peggy Gabour, Agent, Brewster, MA
Fri Feb 1, 2008
Hi Agnes,
I think you hit the nail in the head, you are not a motivated seller. That makes a big difference over the 40 price reductions (yes, it is true) we had. Yesterday was 20. Those are motivated sellers trying to reposition themselves in the market. Some are short sales/foreclosures but not as many as you find in Florida/California. Just people who want to move on with their lives, get their homes sold so they can move on to where ever. Where are you planning to go once you sell your house?
0 votes
Bill Eckler, Agent, Venice, FL
Fri Feb 1, 2008
The Cape cod real estate market is steady and strong. However it is not immune from the typical problems we are seeing in other normally consistent markets. Expect to see short sales and forclosures to be part of the scene. Opportunities will abound......

The "Eckler Team"
Century 21 Almar & Assoc.
Venice, Fl 34285
941-408-5363
0 votes
Barbie White…, Both Buyer And Seller, Cape Cod
Fri Feb 1, 2008
No, Peggy I have not and do not intend to. My price will be a fair and reasonable price for my property and the market.
This will be the second spring I have put my house on the market and I'm hoping for the best. I'm one of those people that Realtors do not like. I am not in a desperate situation. I'll stay here as long as it takes to get what my house is worth. The one question I have for you and other Realtors is,"Why don't you tell the buyers who call us "GREEDY" sellers how much it really costs to sell a house?" I don't think that the buyers realize the costs incurred by the owner. One of the largest costs has been a new $15,000.00 septic system because I am on a salt marsh and wetland. Never mind the regular maintenance it takes to avoid surprises when it is inspected by the buyer. All told, I have already spent close to $35,000 just to put my home on the market. Then there are the closing costs yadayada. As well as The Tax that we Cape Codders have to pay. That's why I haven't lowered my price. By the way, I cannot afford a Realtor at 6%. I am selling myself with the help from the Entry Only listing service. The co-broker fee is 2.5%. I will be pricing my home a little higher than I need so there's room for negotiations. After owning this small cottage for 25 years, I deserve to be able to walk away with enough so I can afford a decent place to live in my later years. I also highly doubt that you had 40 price reductions in one day in the middle of winter. You must be mistaken and have 40 listings, or could it be that they are all foreclosures?
0 votes
Peggy Gabour, Agent, Brewster, MA
Fri Feb 1, 2008
G-R-E-A-T! Low interest rates - prices dropping on homes - buyers are here every weekend....today there were 40 price reductions on active properties. Have you dropped your price yet Agnes?
0 votes
Susan Brown &…, , 02563
Fri Feb 1, 2008
Right now is the time to buy... lots of inventory..prices are low! and interest rates are going down! We are very busy with buyers and sellers and banks. I feel it is going to be a great market if you want to work it.
Sue Brown & Stephanie Smith
"Cape Cod's Finest Mother/Daughter Team"
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Jan 15, 2008
Agnes
Wait......my crystal ball is in the car. Let me go get it!


Half kidding, just to keep you at ease, whatever you loose on one end you will make up in the other. As long as you have good representation.

And anyone that can predict the future, please have them contact Geraldo Rivera.
0 votes
Jonathan Bow…, Agent, Stoughton, MA
Tue Jan 15, 2008
I'd say it's going to be a crappy year for selling real estate on Cape Cod. I'd say it's going to be a great year for buying real estate on Cape Cod. :)
Web Reference:  http://www.bowenboston.com
0 votes
Ed Clemon, , Mashpee, MA
Mon Jan 14, 2008
Its a great time to buy Real Estate on Cape Cod. I believe that with the interest rates being where they are and the properties available with motivated sellers that your timing couldn't be better.
Web Reference:  http://www.capecodera.com
0 votes
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