This 3 BR 2.5 bath Falmouth condo has been completely renovated!

The number of months it takes a seller to sell a condo decreased 33% from October 2009 to February 2010. In October, the absorption rate stood at 20 months and it is now at 13.5.

The most dramatic drop is in Wellfleet where the rate dropped from 39 months to 7.8, followed by Provincetown with a drop from 35.1 months to 12.2.

What does this all mean? It is a positive indication that the sale of condos has picked up significantly. The absorption rate of single family homes is now only 2% better at 11.3 months, the closest the two have been in over two years.

Hyannis grandparents, be sure to take your grandchildren to visit Santa at the Cape Cod Mall. Santa Claus and his merry crew of happy elves have taken up residence for the rest of the holiday season at the Mall.

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There are many steps to financing a condo purchase when times are good. In today’s market when things are not so hot, there are even more hoops to jump through. Just as you want a highly competent medical specialist and a world-renowned hospital when you are sick, you need a highly competent mortgage broker and a mortgage company with realistic underwriting guidelines in challenging real estate markets.

What prompted this post is a closing that took place yesterday…over a month after the original closing date. The reason was the mortgage company…and not necessarily the mortgage agent! By the way, the buyers put 20% down, had exceptional credit scores, and both husband and wife have well-paying jobs!

Three Steps to Stress-Free Condo Financing

1. Assuming that you have secured the services of a competent real estate agent, seek the agent’s guidance in selecting a mortgage provider. An experienced agent will know which companies are “condo friendly” and which agents have the best track records.

2. Use a mortgage provider that has provided mortgages in the condo complex where you buying. On Cape Cod, some of the local financial institutions are better bets than those with off-Cape underwriters. 

3. Use a local mortgage agent who is familiar with the area and the condo complex. Since they have already jumped through hoops for previous clients, they will know how to guide you through them for your closing.

Maybe “stress-free” is a bit of an overstatement, but if you follow these three steps, your purchase will be a lot less stressful.

A maintenance reserve:  What an idea!

 In the midst of our country’s major financial crisis and with daily news casts about both public and private credit debt, it is refreshing to see a condominium community that has wisely put money aside since its inception.  So while other complexes defer projects due to a lack of funds, FalmouthPort in Falmouth, MA just goes on about its business.

FalmouthPort is a waterfront condo community on Cape Cod.  Since it was built in the late 1970’s, the Association Board with its current professional management company, the American Properties Team, have managed the property in a highly professional manner. 

 Three points need to be highlighted:

1. The Board knew from day one that even though the complex was new, the day would come when repairs would be needed.

2. A Long-range Repair and Replacement Plan was adopted, and money (a maintenance reserve fund) was set aside .

3. The funds were invested conservatively.  When stocks were rising wildly, the fund did not grow as fast as some would have liked.  When the market tanked, however, the fund was barely touched.

What spurred this entry?  Today the main road was repaved.  No, there was not just a top coat applied; the old road was removed, and a new one put in its place. 

  And most important: there was not a special assessment.

We received news on Friday that at least one local Cape Cod lender, Cape Cod Five, is reinstituting 90% loans for second home buyers. (NOTE: Contact Meryl Watson for details: mwatson@capecodfive.com). This was made possible because no title insurance companies would insure more than 80% loans but now at least one company is willing to offer the coverage.

95% Financing is Available for Cape Cod Condos

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There are many wonderful Massachusetts condo communities you can call home in the Cape Cod area, but you should definitely have the town of Barnstable at the top of your list while searching for a Cape Cod Condo for sale.

Barnstable Real Estate

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October is here, and with it comes the beautiful fall season, which has already started to turn the Cape Cod area into a sea of yellows, oranges, reds and golds. Of all the areas to visit during the fall months, Cape Cod needs to be on your list. Not only are there tons of local events to enjoy, you will fall in love with the natural beauty that showcases Cape Cod.

Cape Cod Family Fun

Below you can browse a small sampling of the local events and things to do on Cape Cod in October:

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This beautiful condo in a waterfront community that is being offered at $317,000 is an example of good buys awaiting Cape Cod condo buyers. Click on the picture for full details and a virtual tour.
	Current	Sold	Absorption
Town	Listings	6 Mo.	Rate
Barnstable	94	35	16.1
Bourne	43	20	12.9
Brewster	63	28	13.5
Chatham	21	5	25.2
Dennis	83	21	23.7
Eastham	14	4	21.0
Falmouth	72	24	18.0
Harwich	46	8	34.5
Mashpee	105	46	13.7
Orleans	37	11	20.2
Provincetown	187	32	35.1
Sandwich	28	6	28.0
Truro	56	10	33.6
Wellfleet	26	4	39.0
Yarmouth	90	36	15.0
TOTAL	965	290	20.0

What does this mean?

Since the absorption rate for condo sales in a balanced market is usually around 5 months, a 20 month absorption rate means that the number of condos available exceeds the number of potential buyers. This would indicate that buyers still have the advantage in negotiating sales prices and conditions.

Now that the summer is winding down, it’s time to do those things that you wanted to do all summer but somehow never got to do.

Lobster on the Lawn Mondays

Every Monday night during July and August from 5:30 to 7:30 pm, Saint Barnabas Episcopal Church in Falmouth Village serves all meat lobster rolls with all the trimmings for just $15 per person. My wife Mary Beth and I finally made it this past Monday. Hundreds of locals and visitors gather on the church’s expansive lawn. Tables and chairs are provided, but many people bring blankets and sit right on the grass. They also offer free PB & J with juice, chips and a cookie for kids under age 10.  Finally, you get a choice of lemon meringue or blueberry pie…of course mine was blueberry!

Community Atmosphere

Part of the attraction is the casual community atmosphere that permeates the evening. Frisbees, flying footballs, and even a life-sized lobster are part of the fun, and you can end the evening with a stroll down Main Street.

There’s Still Time

The program wraps up for the summer on August 31.

Until next time, Steve

*Absorption Rate: The number of months that it would take for all Falmouth condos presently on the market to be sold. A balanced market is around 5 months.

Here are some Falmouth Real Estate  statistics by price range: 

Cape Cod Real Estate Positives:  

1. The fact that the number of Cape Cod condos listed for sale is down 11% is a good sign.
2. The absorption rate is also down.

Cape Cod Real Estate Negatives:

1. The average sales price is down 10% from the same period a year ago (2008: $407, 812; 2009: 367, 576).   
2. In the past six months, 53 Cape Cod Area condos have come on the market while 22 have been sold. 

Conclusion: The continued downward pressure on sales prices means that the Cape Cod home buyers market continues.

Until next time,
Steve