Tag Archives: Cape Cod

Right Price Equals a Quick Sale

The condo market on Cape Cod has been very slow, but there is clear evidence that if a unit is in good condition and is priced right, it will sell.

A case in point is a closing that took place yesterday. When I was meeting with the seller about listing her beautiful condo, the seller had a price in mind that was considerably above the fair market value that I had determined. I suggested that she have an appraisal done so that we would have an independent third party’s view of the property value. Another good reason to have an appraisal done is that there will be a day of reckoning when the bank appraisal is conducted after the home is under contract. No matter how much the prospective buyer loves the home, if the home does not “appraise,” there is no sale.

After the appraisal came in, the seller listed the home and priced it accordingly. The condo sold in 63 days at the appraised value to a couple who had been scouting the market for over two years. They knew that the home was priced right and was a good value in this market.

Cape Cod Condo Absorption Rate Improves

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

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.

Good News for Cape Cod Vacation Home Buyers

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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Cape Cod Fall Events

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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2009 Cape Cod (MA) Condos Listed/Sold Comparisons

  

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.

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.

NAR Released Second Quarter Condo Statistics

Cape Cod Real Estate News

The National Association of Realtors has released its second quarter sales results for Cape Cod condos. The good news is that lower prices and attractive interest rates have increased affordability for both year-round and second Cape Cod home buyers. Click the link below to see the survey.
NAR Second Quarter Condo Sales Results

Searching for a Cape Cod Condo

If you are ready to browse the Cape Cod MA MLS listings, then feel free to contact me, Steve Clay, your Cape Cod Condo Realtor to set up home viewings or to learn more.

Until next time,
Steve

Condo Financing Still Tough on Cape Cod

The downward pressure on the sales prices of Cape Condos continues as the challenges of getting financing continue.

Buying a Cape Cod Condo

The very same condo that I mentioned in May had a new buyer and a new lender and fell apart again at the last minute. This time it was about the buyer’s income. Needless to say, the bank (in this case Citizens Bank) had preapproved the buyer, received all the information requested in a timely manner, and gave no indication of a problem until the day of the final commitment when they issued a “declination letter.”

Another condo in a very well managed, well funded complex that has never had a special assessment, is under agreement with a strong buyer. The buyer is putting 20% down. Yesterday, the date of the final commitment, the lender (Provident) could not meet the original commitment date because their underwriters are backed up. The commitment is now due next week. Stay tuned.

You Can Buy A Cape Cod Condo At A Great Price

Needless to say, this continues the downward pressure on condo prices because buyers are reluctant to get involved.

On the bright side, however, I do have a closing today on a very nice Cape Cod condo. Bank of America is providing the financing for this one.

Until next time,
Steve