Q: How would you describe the current state of Cape Cod’s real estate market?
A: Healthy. Our pending sales and sold properties are up dramatically. Properties are being listed and sold rapidly as demand is high – so our inventory is low. Remarkably, our average sale prices on the Cape are steady. Our second home market is strong and Cape Cod continues to be a desirable retirement and second home destination.
Q: What economic factors affect the Cape Cod real estate market? Do they differ in the higher end category?
A: About 50% of our buyers are purchasing second homes on the Cape. These buyers primarily hail from Massachusetts, Connecticut, New York and New Jersey. We have a high percentage of cash buyers – especially in the higher end market. Our demographics on Cape Cod indicate that our population is older than off Cape and retirement homes are a large part of our marketplace. There is a high level of consumer confidence right now and buyers who were holding back in previous years are in the market now. But even in economically less stable times we find that the high-end buyer is always present and Cape Cod continues to be desirable.
Q: The baby boomers have traditionally had a strong influence in our nation’s economy. Now that they are aging, how has this demographic affected the Cape Cod real estate market?
A: The baby boomers are by far our largest segment for sellers and buyers. Our strong over age 55 population here on Cape Cod is divided between retirees and second homeowners. Baby boomers have amassed wealth from their real estate investments and inheritances and have been an ever-increasing force in our marketplace across the whole spectrum of price ranges, and very much so in the Luxury market. In addition, we are seeing significant market growth from younger, Gen X and Millennial buyers.
Q: Over time, how have Cape Cod home market values fared statistically with economic ebb and flow?
A: Most sales, as well as purchases on the Cape are discretionary – few sellers have urgency to sell quickly and few buyers have urgency to buy immediately. Many of our residents here are second homeowners. So our market is frequently different than the off Cape and urban markets in the northeast. It has created a more stable price point and a healthy, slow and steady increase since the volatility of several years ago.
Q: What’s hot in the Cape market? What is currently selling?
A: We have consistently strong demand for properties that are ready to go. Buyers in all price points want to fall in love with a home and be able to move in with a minimal amount of renovation. Especially in the spring and summer, the Cape lifestyle beckons.
Q: What factors have the greatest positive affect in the Cape luxury market?
A: Strong economy, attractive interest rates on jumbo loans, stock market stability, the Cape’ s close proximity to Boston – and good weather!
Q: Can you describe Cape Cod’s availability of local resources, services, and contractors that a homeowner may need?
A: We have an abundance of resources for all homeowners – ranging from great healthcare facilities to shopping to fine dining. And of course we have talented architects and reputable contractors to renovate and update older homes.