Cape Cod...Island of Opportunity?

Welcome! And thank you once again for visiting the Cape Cod Realty Advisor Guide.

As my last Blog was more of an introduction, I am really excited to get into the meat of what is happening in and around Cape Cod with regard to Real Estate.

One of the questions I am always asked by people that are not 'in the business' of Real Estate is: "So, How's the market?" Now, I believe that more than half the people asking this question think they already know the answer. They think the market stinks, that it will be years before it bounces back and that there are no more opportunities left. Correct?

Absolutely. (What?)

Look. The opinion put forth in the previous paragraph is only correct if you are unable to see the tremendous opportunities that exist. Let me challenge you to look at the situation with a bit more of a ‘glass half full' perspective.

To be successful at anything, you have to be able to look outside your own situation and see it through another's eyes. When people say that the market ‘stinks', what they really mean is that their property is worth less than it was 2 years ago. They hear about property foreclosure, credit crunches and falling home prices. If you own a home and your credit is still intact, this is a perfect opportunity for you to upgrade your home. As long as you are selling low and buying low there is no value lost. In fact, a move to a larger or more expensive home will serve up a greater return when the market bounces back. An example of this would be that if you are in a home that is worth $250,000 vs. $350,000, a 10% eventual return of the market will gain $25,000 and $35,000 respectively. Not a huge difference, but this gap widens as prices climb. (And they will). Not only that, but you are enjoying a new home that may have previously been out of reach. For those first time homebuyers, you may be surprised to know that there still exists a multitude of quality lending institutions that want to lend you money!

Now, for those looking to buy a primary or second home, you should be viewing this as ‘The Perfect Storm'. "What are you talking about!?", your thinking. This is what I mean. There are three driving forces that make this situation the ‘Perfect Storm'. Inventory is abundant, prices are temporarily depressed and interest rates are still historically low! This very situation is the one that people were begging for in 2005. And it is now this situation that will attract individuals from both here and abroad, to begin purchasing Real Estate here on Cape Cod. Don't kid yourselves, this is going to happen. The first wave of Baby Boomers are set to retire in 2009, at which time they will be looking to a handful of locations to live full or part time. (Cape Cod being high on their lists) Interest from other countries that now hold incredibly strong currencies such as, Canada, Ireland and England, will also drive the Real Estate market as it presents smart investment opportunities. And finally, more locally, the rash of foreclosures will cause some individuals to seek rental housing as an alternative to owning. This in turn drives the need for investor owned rental properties.

So as you see, there are opportunities that exist here on Cape Cod both now and in the future. So take the time to educate yourselves, and make this opportunity yours! Thank you again for reading my Blog, I hope you found it both eye opening and enjoyable. Please feel free to send any questions, comments or topics for future Blogs to: Mhansen@c21shoreland.com

Regards, Mark Hansen