In last week’s post we wondered if the real estate market on Cape Cod was changing. We only had anecdotal evidence based on our own experience and that of our colleagues to suggest that there seemed to be a shift.
Now, we have the official stats from the Cape Cod and Island Association of Realtors that suggests something may be happening.
The biggest evidence is a drop of $30,000 in median sales price for a single family home from May ($630,000) to June ($600,000) across Barnstable County. So, while the final sale price as a percentage of list has remained steady (104%), the actual dollar amount has decreased.
In Sandwich, the median price dropped from $590,000 in May to $539,000 in June — a not insignificant decrease of more than $50,000.
It’s important to note that a year to date comparison from 2020 to 2021 shows a nearly 31% increase in median sales price in Town overall. ($420,000 vs. $550,000.)
Inventory across the Cape increased last month (502) from the previous (448). In Town, it jumped from 25 to 34 homes. New listings nearly doubled from 28 to 50, while days on market increased from 14 to 24.
The Cape now has 1.2 month supply of available single family homes. At least three months is needed to be considered even reasonably healthy.
So what does this mean?
For buyers — particularly those who dropped out of the market after being frustrated with long lines at open houses and price competitions that they couldn’t win — this could be a good sign. If you were among the discouraged, it might be time to re-start your search.
For sellers — as we’ve been suggesting for weeks now — your return on investment is potentially shrinking. While we’re continuing to see most offers come in above list price, they’re generally not at the volume or mind boggling levels that we saw just a few months ago. (In Sandwich, the percentage over list dropped from 105.6% to 103.1%)
The time for sellers to act is now, as competition is increasing with more homes coming on the market.
If you’re wondering where you can move if you sell, the larger inventory is also a positive for you.
Is this a temporary slowdown because of buyer fatigue and distractions due to graduations, weddings, and vacation planning? Or is something else at work? Time will tell, but smart real estate investors — sellers or buyers — should take note.
As always, we’re happy to assist you in reviewing your options . We’ve been helping our clients make the best decisions for themselves for more than 20 years.
Please reach out at 508-568-8191 or firstname.lastname@example.org. Talk soon…
Don’t wish for it; go for it!
Mari and Hank