As more people continue to identify their changing needs this year, some are turning to the upscale housing sector on Cape Cod and elsewhere for more space or finer features.
According to the most recent Luxury Market Report, from the Institute for Luxury Home Marketing (ILHM):
“In a snapshot of 2020, despite the devasting effects of the coronavirus pandemic, the luxury real estate market has seen one of its strongest years since 2008. In comparison to experts’ predictions in early 2020, it is remarkable how significant demands for property type, location, and amenity preferences have changed amid the pandemic.”
With more opportunities to work from home and a growing interest in having extra space for things like virtual school, working out, and cooking, the desire to own a house that can meet these needs continues to increase. Additionally, record-low mortgage rates are creating opportunities for buyers to stretch their legs into higher price points or even expand their real estate portfolios. The ILHM report also says:
“Experts believe that the demand for exclusive residential properties outside the metropolitan areas will continue well into 2021; even with the introduction of vaccines, the pandemic is far from over.
For those who have moved to the suburbs and beyond, moving back to the city full time is unlikely while the work from home trend remains. Many of these affluent homeowners are now making their secondary properties their primary residences for the foreseeable future.”
If you’re interested in buying a home this year, it appears that some higher-priced areas may have more homes to choose from than those at lower price points. Javier Vivas, Director of Economic Research at realtor.com, notes:
“Interestingly, markets, where new supply is improving the fastest, tend to be higher priced than those that have yet to see improvement, suggesting sellers are more active in the more expensive markets.”
This increased interest creates opportunities for homeowners in the higher priced category, who may have been concerned that there wouldn’t be sufficient demand for their property, because of current economic conditions. As noted above, historically low mortgage interest rates have opened new possibilities for buyers at price points they may not have considered in the past.
We continue to work with buyers from metropolitan areas — like Manhattan, for example — who do not view Cape prices, taxes and fees as out-of-bounds, as more local clients might.
As evidence of this increased interest in luxury homes, real estate companies are abandoning their “Million Dollar Clubs” created years ago to salute agents, who sold property at that price point and beyond. Our company, Today Real Estate, recently replaced the “Million Dollar Club,” with a “Two Million Dollar Club,” at least in part due to the number of recent one million dollar sales
With inventory continuing to be limited, this is a great time to market your Cape Cod home, no matter the price point. Interest remains strong. Buyers are lining up before Open Houses even begin. We helped a colleague at an Open House last weekend that generated 30 offers!
Helping our clients make the best decisions for their individual situations has been our full time job for 21 years, not a part-time hobby. If you’re interested in reviewing your options, let’s connect at 508=568-8191 or msennott@today realestate.com.
Remember: someday isn’t a day of the week. Talk soon…
Don’t wish for it; go for it!
Mari and Hank