Cape Cod Market Update February 2020

January Review:

After the holidays the January market saw an increase in new listings which was up nearly 14% from January 2019.  We are hopeful this trend will continue and result in more months supply of inventory as we enter the Spring season.  We also note several trends in other metrics that indicate what the Spring may look like.  Days on market has remained largely unchanged since May (with a slight dip in the summer).  This indicates relative balance between quick sales due to under-pricing or motivated buyers and prolonged sales due to over-pricing or a dearth of buyers.  Also months supply of inventory is currently the lowest it has been in January since at least 2017.  If these trends continue the market may look similar to 2019: low inventory and seller favored.  

However, we are seeing something else happening.  The single-family home affordability index, if you have been keeping up with our reports here, remained largely the same throughout 2019 and the trend goes all the way back to the end of 2017 (with a brief decline in the fall of 2018).  This indicates that the median income on Cape Cod has been keeping pace with the median home sale price increases over the last two years.  The trend overall has the affordability index hovering in the 80s and since a score of 100 indicates the median household income can afford the median homes sale price, the Cape is still not as affordable as it could be, but at least the trend is not one of decline.  Contact us today, we are always glad to discuss the market in further detail if you have questions. For more market data check out our blog category Real Estate Trends.

	Nov	Dec	Jan
Closed Sales	334	350	270
Inventory	1,700	1,346	1,397
Median Sales Price	$439K	$436K	$431K
Avg Days on Market	109	109	108
Avg % of Original Price	93%	93%	93%