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.
Falmouth Home Buyers Are In a Great Position
Some startling statistics show that it’s a great time for anyone to be a Cape Cod condo buyer in Falmouth (MA). This is especially true what with the ample Cape Cod real estate inventory that is still growing. That means Cape Cod sellers are usually more flexible. With mortgage interest rates at historic lows, it could entice more condo buyers to emerge from their winter hibernation.
What Does This Mean to You as a Cape Cod Condo Seller?
Since there have been more Cape Cod condos coming on the market than have been sold, there is still downward pressure on prices and the inventory remains high. Condo buyers are clearly in control and will stay in control until there are three consecutive months with more Cape Cod residences being sold than come on the market. The key to selling your Cape Cod condo in this market is to price the property correctly.
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Until next time,