The Half-Way Mark

The end of the second quarter and first half of 2008 is a good time to review the performance of the real estate market. We compiled the following table for a year to date review with three year comparison for the towns of Provincetown, Truro and Wellfeet.

Provincetown

2008 to date
Properties Sold: 89
Dollar Value: $48,409,301.00

2007
Properties Sold: 165
Dollar Value: $85,902,800.00

2006
Properties Sold: 158
Dollar Value: $82,653,453.00

2005
Properties Sold: 228
Dollar Value: $139,366,255.00

Truro

2008 to date
Properties Sold: 31
Dollar Value: $19,619,500.00

2007
Properties Sold: 61
Dollar Value: $36,974,833.00

2006
Properties Sold: 56
Dollar Value: $37,325,075.00

2005
Properties Sold: 91
Dollar Value: $55,464,466.00

Wellfleet

2008 to date
Properties Sold: 26
Dollar Value: $13,137,190.00

2007
Properties Sold: 93
Dollar Value: $55,814,425.00

2006
Properties Sold: 74
Dollar Value: $42,099,750.00

2005
Properties Sold: 105
Dollar Value: $57,164,800.00

Seller Incentives

If you are selling a property, you have no doubt seen other sellers offering incentives to make their properties stand out, and you are wondering if you should jump on the bandwagon. In a market with increased inventory, the challenge for sellers and their agents is to figure out what will capture the attention of the buyers. Incentives are more common in traditional markets, but we are beginning to see them crop up on the outer Cape. Some sellers are offering to: pay condo-fees or property taxes for a year, pre-pay for a year of parking, pay a bonus to the selling agent, hold a part of the mortgage, or pick up the closing costs for their would-be buyer. One seller even offered a new motor scooter with the purchase of his property!

Do these incentives work? In some cases, they may initially help to draw attention to the property. But do they increase the likelihood of a sale? In our experience, the answer is NO. With so much competition, there are two fairly simple ways to make your property stand out. 1 – Clean, repair and stage your property. Get rid of clutter, make obvious repairs, and consult a staging expert. A property that appears well maintained and presents in a clean and stylish manner will rise to the top of the buyer’s list. It’s all about making an impression. 2 – Price you property appropriately. This is the single most important factor. Instead of offering to pay expenses for the buyer, use that money to bring the price down to where it belongs in the marketplace. Get an appraisal of your property, and price the property accordingly. In the end, it’s the property that will win the buyer over, not the perks.

Aim for an 'A' on Title V

There has been a lot of talk about Title V lately. Title V refers to the state regulation of the type of septic system your house or condo association has in order to dispose of waste. Many homes on the outer cape have cesspools or a version of a septic system. However, these systems do not pass as title v systems.

When selling your home or condo, you must be sure that the health department for the town where your property is located, has a passing Title V report. This means that your system has been tested by a licensed inspector and filed with the town. Your system should be tested every two years to keep the report current. If you are not selling your property there is no need to test, but proper maintenance by pumping should be done occasionally. If you are not aware of the type of system you have and you are planning to sell your home, make sure your realtor gets a copy of the title V report prior to listing your home for sale. You should know what type of system you have and whether or not it passes. 

Effective February 1, 2005, all homes and condo associations in Provincetown and most other communities in the state, must have a passing Title V when selling property. Sellers who offer town approved engineering plans are on the right track, however, it is difficult for a buyer to obtain financing with competitive interest rates when a property does not have a passing Title V. Seller beware, considering the current market conditions, this could make your property a challenge to sell. 

Introducing the CLIENTS’ CORNER

It has occurred to us that many of our clients have exciting businesses or interesting information to share, and we would like to provide a networking forum for you. Do you have a show in Provincetown you would like to promote? Have you just opened a shop in Greenwich Village? Will you be performing at a Boston café? Did you just win an award? Are you hosting a fundraiser for a special charity? Do you want to publicize your website address?

Our Blog announcement goes out to over 500 people each week, and we’d be happy to post your information. Just send us an email with the information you’d like to share and look for our new CLIENTS’ CORNER feature to appear on our Blog home page within the next couple of weeks.

Send information to: info@provincetownrealestatenow.com.

Mortgage Rates Garner Interest

Mortgage interest rates have been the topic of many dinner conversations lately. Right now, with low rates and low prices it’s a good time to buy. This is indisputable. Refinancing can be a little tougher as property values continue to decrease, impacting appraisals and creating an impossible loan to value ratio for banks. Many homeowners, who took advantage of adjustable rate mortgages a few years ago, find themselves stuck in unfriendly products and unable to refinance to take advantage of lower rates.

The upcoming presidential election has generated some interesting predictions for mortgage interest rates. Some say that if a Democrat is elected, the mortgage interest rates will increase. Others say that there will be no impact whatsoever.

Historically, starting with the Reagan administration, rates were high, up to 15%. The rates started to decrease as the first Bush administration neared its end, hovering around 9-10%. They continued a slow decline under the Clinton administration and increased slightly right after George II was sworn in. During the current Bush administration rates hit all time lows, around 5%.

Where the rates will go is hard to tell. The mortgage industry is still suffering from its recent meltdown. Inflation, price of oil and whether or not we enter a recession will be major factors. 

With instability in the mortgage industry and the upcoming election a possible factor in impacting the rates, a good time to act on that special property is now. Never before has there been a genuine sense of opportunity to invest if you are qualified to do so.

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.