We won’t have official numbers from the Cape Cod and Island Board of Realtors for at least a week, but anecdotally — based on what we’ve seen and our colleagues are saying — there seems to have been a shift in the area’s real estate market.
The Open House frenzy of March and April seems to have calmed. While there are always exceptions, there are no longer lines of buyers waiting to see a property. What we used to describe as a “busy” Open House has returned.
Multiple offers are still the norm, but not in the numbers of a few months ago. Bids are still over asking price, but there aren’t as many head scratchers, because of the large amounts involved.
What hasn’t changed is that list price is now the starting point. The days of bidding low are a thing of the past — at least for now.
Why the change? There are several potential reasons.
May and June can be some of the slower months in the housing industry as people focus on weddings, graduations, summer plans, etc.
But, national housing industry publications are also talking about “buyer fatigue.” Too many lines to see properties that became out of reach, because competition pushed prices beyond what many could afford. (Or thought was reasonable.)
At the same time, the number of listings has crept up. While inventory is still nowhere near what it needs to be, the increase in available property is a good sign.
Finally, with so many getting vaccinated, the urgency to move to areas like Cape Cod for the open space, recreational activities, etc. has lessened. Health clubs are open again. The kids can swim in the condo pool. Favorite restaurants and bars are now providing indoor and outdoor dining.
You also have to wonder if the “work-at-home” thing has started to fizzle. As example, Boston traffic reports are starting to sound very similar to those of pre-virus days.
Is this a temporary lull or another example of a return to normalcy? We should have a definite answer by the end of summer.
In the short -term, what does this mean for buyers and sellers?
For buyers — especially those who stepped out — it’s time to get back in.
For sellers, who have been sitting on the sidelines, you may have lost money. While offers are still coming in for over asking prices, they are not as high as they typically were just a few months ago. (But there are still exceptions.) While no one expects prices to drop, potential return on investment is shrinking.
As always, we’re available to answer your questions or help you review your options. Please contact us at 508–568-8191 or firstname.lastname@example.org. We’re happy to help.
Mari and Hank