Well, not literally, but anyone who has been watching the real estate market on the Cape knows that it is hot to the touch! Painfully low inventory coupled with an unusually high number of buyers have been driving prices up and days-on-market down. Maybe buyers are looking to flee the density of the city. Maybe they’re looking for a more beautiful spot to shelter in place or work from home. Maybe they’ve got a good case of carpe-diem-itis. Whatever the reason, homes are flying off the market within days – if not hours – of being listed and unfortunately for many buyers, prices have been soaring out of their price range.
Let’s take a look at the last couple of months. In our May 31st blog post, we forecasted that the market, which had been on life support in the early Spring, was showing signs of rebounding. Pending sales, which had been down over 40% in April from the previous year, were now down only 12%. New listings that were down almost 60% in April from the previous year were now down only 27%.
Fast forward to today. The July numbers show closed sales up SEVENTY PERCENT compared to July 2019. Pending sales are up 57% and median sale prices are up almost 15%. These numbers have made it very difficult for many buyers to get into the market. Bidding wars have made a come-back and even more so than usual, cash is king.
But will it last? That’s a tough question to answer, especially since the current market conditions have been largely due to the pandemic, and nobody knows for sure how long it will last. For the market to “settle down”, we need more homes on the market. Will the Fall bring with it more “For Sale” signs? Let’s look at the numbers.
In July, new listings rose by 10% over July 2019. So that’s a promising sign. The August numbers will not be out until the second week of September, but an early analysis of the MLS data suggests that new listings may be down slightly from last year. But that’s as of this writing with still a week to go. Historically, September is one of the best months of the year for new listings. If you lost out on one or more homes over the summer, hopefully September will be true to form and deliver a new crop of fresh listings. But you must be ready to act! Other buyers will be on the lookout for the same properties. Be sure you are receiving new listings the minute they hit the market and that you have your financing all lined up. The best homes are likely to continue being scooped up fast.
In this highly competitive climate, you need every advantage when searching for a new home. Be sure you have a professional Realtor working on your behalf as your Buyer’s Agent. It doesn’t cost you anything and it could make the difference between you finding the perfect home or not. If you are not already working with a Realtor, visit our Agent page on our website and reach out to one of our Sales Professionals. It will be our privilege to assist you.