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: firstname.lastname@example.org). 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.
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.
You’re probably asking yourself, “why in the world would comedian Ray Romano consider buying a luxury condo in Cape Cod?” First of all, Mr. Romano is no stranger to Cape Cod. As a matter of fact, Mr. Romano was the Celebrity Guest Conductor for the 22nd Annual TD Banknorth Pops by the Sea concert back in 2005. Need more reasons why you might see the “Everybody Loves Raymond” guy purchase a Cape Cod condo? Take a look at my impressive list of 4 great reasons why Ray (or any celebrity for that matter) would consider buying a condo on Cape Cod: