Year-To-Date Sales Data

The real estate market on the Outer Cape is holding its own. In comparing sales from January through May of 2007 with activity from these same months in 2008, the sales volume in Provincetown is up slightly this year, Truro is about even and Wellfleet is down by 30%.

Following find a breakdown of the Sales this year by town:

PROVINCETOWN (2008 YTD Sales Volume: $40,460,801 vs 1/1/07-5/29/07: $35,875,000)

Single Family 13 have sold with an average price of $938,000.
Multi Family 2 have sold with an average price of $1,175,000
Lots and Land 0 have sold
Commercial 1 sale with a price of $1,650,000
Condominium 52 have sold with an average price of $349,362
Hotel/Motel 1 sale with a price of $6,1000,000



TRURO (2008 YTD Sales Volume: $15,122,000 vs 1/1/07-5/29/07: $16,020,100)

Single Family 13 have sold with an average price of $697,792
Multi Family 0 have sold
Lots and Land 4 have sold with an average price of $812,500
Commercial 0 have sold
Condominium 8 have sold with an average price of $350,088
Hotel/Motel 0 have sold



WELLFLEET (2008 YTD Sales Volume: $11,645,190 vs 1/1/07-5/29/07: $16,746,175)

Single Family 14 have sold with an average price of $639,928
Multi Family 0 have sold
Lots and Land 2 have sold with an average price of $212,100
Commercial 3 have sold with an average price of $182,667
Condominium 4 have sold with an average price of $428,500
Hotel/Motel 0 have sold

Quite the Scenic 'Scene'

In conversations we’ve had throughout the years with various individuals who decide to move here, the natural beauty of Cape Cod always comes up as one of the reasons.

A few week’s ago, as recorded on our video blog, we were treated to a spectacular show of Right Whales feeding off Race Point and Herring Cove Beach. Viewing a breaching whale from the beach is rare.

With that being said, the wonders experienced on the Outer Cape are breathtaking. From our sunsets and world’s most beautiful beaches to the manic culture of summer and isolation of winter, there is nowhere like the outer cape.

Why do I bring this up? Well, it seems that folks are buying on the Outer Cape now for the absolute love of the area, not for a quick buck to be made on a flip. This is good news for us year round residents as it means more concern and care from homeowners who vacation here.

Since 2005 the median real estate price for a single family home in Provincetown dropped 12.6% to $594,500. In Truro, a drop of 8.7% to $582,500 and Wellfleet a 10.7% drop to $500,000. This means opportunity for buyers who are ready to make the investment in a Cape Cod home.

If you are a second homebuyer who missed out on opportunities before the radical appreciation of the early 2000’s, come back, and make that dream of owning a vacation home on Cape Cod a realty.

The Pitfalls of Overpricing

The best indicator of what your property is worth is an examination of recent comparable sales. Your Seller’s Agent can provide you with a CMA, a comparative market analysis, which outlines these sales and estimates the value of your property. Try to remain unemotional when you review this information. You may be thinking of how nicely you re-tiled the bathroom or how much better the kitchen looks since you re-modeled, and because of your efforts, you feel your property is “better” than the comps, and therefore worth more. It can be very difficult to depersonalize the process of pricing, but it is the key to success.

The “sweet spot” for marketing a property is the first 30 days. The greatest number of showings typically occur during this period. This is when the property first appears in advertisements and on real estate websites. Buyers closely monitoring the market will become aware of your property and take immediate notice of the new offering. Excitement is generated by the new listing. Buyer’s Agents will be previewing the property for their clients. BUT, only if it’s priced right.

When a property is not priced properly, you essentially forego the benefits of the first 30 days. Buyer’s Agents will overlook the listing as being unrealistic and will not bother to alert their clients about the property. Realtors know their market, and why waste time with a property that is overpriced? Buyers conducting their own searches will compare the house to others like it, and will dismiss it. With the current market conditions, it is very risky to price your property higher than it’s worth. With increased inventories, there are too many other choices.

You may be thinking, “I am not desperate, so I will just wait for that one person who loves this house as much as I do and is willing to pay for it.” In most cases, this strategy does not bear out. Remember, most Buyers will be getting an appraisal to satisfy their lenders, and the appraisers use the same comps that your Agent used in the CMA. If the property doesn’t appraise for the asking price, you may find yourself re-negotiating the purchase price.

If you do not need to sell and you require a price higher than the market will support, it is best to wait until the market appreciates. Why relegate your property to becoming stale? When the market finally catches up, buyers will ask “what’s wrong with that property? It’s been on the market for so long.”

If you want results, price the house competitively. Remember, for every month the house doesn’t sell, you will pay carrying costs, and ultimately you must deduct those from any higher price that you may have achieved by waiting an extra year to get your price.

How Low Can It Go?

Price reductions and new listings priced according to current market values continue to generate activity in this slow real estate market. Buyers are now acting to take advantage of opportunity. Some buyers, however, are waiting to see just how low, the sellers will go.

From the buyer’s perspective this strategy could create anxiety. Here’s the risk. If you find a property you like and decide to play the waiting game you could lose out. With interest rates still low and price reductions bringing many properties into reach for more buyers, you may lose that property you had wanted. We’ve seen this lately on the outer cape. A buyer passes on a property in order to play the waiting game. Suddenly, the property sells and the buyer feels dejected having not expected the property to sell. 

Sellers on the other hand are not only reducing their prices, but are offering a buffet of enticements…some are paying condo fees for up to a year, large buyer bonuses and more. But the only thing that really matters is the listing price.

If you are in the market to buy and have identified your dream home on the outer cape, talk to your realtor about making an offer. If you are willing to make a realistic offer, it might surprise you as to what sellers are willing to do to sell their property.

Provincetown's Historic Floaters

Have you ever wondered about the meaning of the blue plaque that is found on many Provincetown houses? Throughout Provincetown, but mostly in the West End, you will find antique homes that bear a blue and white ceramic tile that depicts a house on a boat.

These homes are known as Floaters. They were built beginning in 1818 on the peninsula that we know as Long Point. Many of today’s visitors are not aware that at one time, a settlement existed on Long Point. There was a thriving community, with a Salt Works being the primary industry. The Light House was built in 1826 and there were windmills, a store, a school, boat landings, and a total of 200 people that lived in 38 houses.

When a large salt deposit was found in Syracuse NY, it essentially put the Long Point Salt Works out of business and eventually in the 1850’s, the settlement was abandoned and the families moved to the mainland. Wood was a precious resource at the time, and rather than just leave their homes, the settlers brought their houses with them by floating them over on rafts. They were placed on foundations, and many still stand today.