Of course, there are some aspects about the market you’ll want to know before you make such a purchase. So here’s what you need to know about trends in real estate on Cape Cod as we enter 2019.
Supply and Demand
This year it’s been a close call as far as supply and demand for inventory across Cape Cod. Luckily, that means it’s both a buyer’s and seller’s market overall as the real estate market trends continue into the New Year. A busier than normal late fall was seen in market trends, but of course, it’s normal for that to cool down as the holiday season is in full swing.
Inventory has been down overall in 2017 and 2018. Closed sales, inventory, and median sale prices were all down in November as buyers and sellers slow towards the close of the year.
However, this could all mean good things for sellers moving into 2019. This could be the perfect time to add your property to the low inventory out there right now and add to the market. This could also provide the opportunity to set trends for the early 2019 market or at least be ahead of the curve.
Compared to this time last year
Although much of this might not steer you in one direction or another, there is one good thing to note. November of 2018 is already showing healthier trends than the same time the previous year. Last November reported 5.8 months of inventory, a little better than 2017’s 5.3 months.
What does this mean overall?
Thankfully, the economy is strong. There are hints from the federal government that rate hikes may be slowing down. This may only mean good news for a healthy local market.
Overall, the picture is very positive. Whether you’re planning to buy or sell, the market for homes in Cape Cod is very strong. And since the area is one of the most sought-after as far as owning real estate goes, it may be a good time to make that purchase you’ve been contemplating.
How the past affects the present
For the past couple of years, Cape Cod has seen strong increases in home prices. Additionally, inventory has gone down overall because of the fast turnaround of homes and the high demand from buyers.
The 2016 Cape Cod real estate landscape continues to affect today’s market. Inventory during this time dropped to the lowest point in five years – 35% from 2015. Additionally, the time a home was on the market was also at an all-time low, with an average of 127 days.
This made things a little more difficult for potential buyers. But this trend is also defining the future of the market in Cape Cod. The high demand can be attributed largely to the economic prosperity in the area, and this is visible in today’s market, too.
What to keep an eye on
There is, however, one issue you’ll want to look out for. The low affordability index could continue to be a point of concern. The median price of a house in Cape Cod is higher than what the median income can afford. So, before you make any purchases, make sure to do these types of calculations in order to best plan for the future.
Looking forward, there is relative harmony between supply and demand as begin the first quarter of 2019. However, reports indicate that buyers may ultimately come out on top. With ample inventory to choose from, buyers have more opportunities to shop around as they look for a second home or investment property. Contact us today for more information.