Cape Cod Market Update May 2020

April Review:

  April certainly was a little unusual. When the Spring market should have been in full swing much came to a grinding halt instead. Closed sales were down 22% from April 2019 and saw a decrease from March 2020, which is unusual as well. We expect the trend of low sales to continue into May since the lagging indicator of number of pending homes (those that are under contract) was down 43% from April 2019.  Inventory was also low in April and was down nearly 60% from 2019, and was nearly flat from March, again an unusual thing to see when the Spring market should be taking off.

  Are we concerned? Well, not exactly.  While we do expect the overall trend of low home sales and inventory to continue for another month or two, depending on the timing of Governor Baker's 4 phase reopening plan, there are good things too.  First, we are open for business and doing business (see the blog from our agent, Amanda Bebrin, regarding what buying looks like with social distancing in place). If you need to buy or sell, we can, and are, getting it done. In the short-term there is pent up demand for homes and many sellers are waiting to list or have removed their homes from the market, so we expect a boom as more restrictions are eased. Second, mortgage rates are at near historic lows and if you are buying, now is a good time for financing. Third, short-term seasonal vacation rentals are open to essential workers and we look forward to having them open fully in phase 2, which may be as soon as June 8th. Finally, after working from home since March, we are eager to reopen the office to regular visitors and hours, following the outlined guidance from the Commonwealth. All of these things indicate that life will, soon, be getting back to normal. Stay healthy and safe everyone!

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.

	Feb	Mar	Apr
Closed Sales	324	326	264
Inventory	1,426	1,471	1,455
Median Sales Price	$435K	$441K	$440K
Avg Days on Market	120	124	116
Avg % of Original Price	93%	94%	95%