Though the inventory has shrunken a bit in 2017 and 2018, there’s still plenty to appreciate for eager buyers. Sellers also have numerous opportunities to add to the low inventory and demand fair prices in a strong market.
The overall picture is extremely positive. No matter what side of the stand you are in, buying or selling, the Cape Cod real estate market is holding strong. Despite some challenges, it is the real estate market after all, Cape Cod is a prized destination to build your future.
The Past Two Years and the Trend Today
2016 saw an interesting shift in the Cape Cod market still being felt today. The inventory of Cape Cod homes for sale dropped to its lowest point in five years, a 35% drop from 2015. To further develop on this, the time a home sat on the market was also a five-year low, averaging 127 days.
These previous-year numbers indicated strong increases in home prices, which did occur, throughout 2017 and 2018. By September 2017, Cape Cod single-family homes saw a 9% year-over-year change (1).
Inventory has decreased due to the quick turnaround of homes, the high demand, and the economic stability of the region. While this made it a bit trickier than hoped for from many aspiring buyers, it suggested a defining future for Cape Cod. People were more than happy to settle here and watch their future grow.
Thankfully, recent data suggests that this low inventory may be tapering off, at least a bit. A November 2018 report stated that the inventory for homes dropped only 2% since September. While this may only be a single 60-day period in the total data, it comes at a time when the market is barreling into the holiday season.
The current inventory is quite healthy, according to current reports. During this reported period, both average days on market increased and percent of original sales decreased (2).
Charting out the back half of 2018 was fascinating. The total inventory was 2,182, 2,291, and 2,252 across August, September, and October respectively. Furthermore, the average days on market jumped from 90 to 98 while the median sale price grew from $420,000 in August to $480,000 in October.
To top it off, additional economic metrics at a federal level look positive. The Feds are all but expected to raise rates in 2019. Combine this with a wonderful employment level in Cape Cod and increasing wages and the community may settle into a cozy Renaissance period.
Of course, reservations are healthy and you need to assess all risks. For example, there are some economic reports suggesting a reeling back of the economic growth. If, and how, this will affect Cape Cod is speculative at the moment.
What does this suggest for just 2019? There is little doubt that based on collective reports, Cape Cod is seeing a nice buyer-seller balance come into play. The reports indicate a more suitable market for buyers. The bolstering inventory is a wonderful indication that buyers have a little more to choose from. This selectivity will empower buyers usually held at a disadvantage to low demand.
Whether your interests rest in the lower cape or the upper, mid cape, or outer, there’s plenty of promise. Economic reports are strong. Cape Cod is healthy. Buying in Cape Cod could lead you down a safe and prosperous pathway.
Contact us today to take these vital first steps in Cape Cod home buying.