Steve Clay

An Overview of the 2009 Falmouth Condo Market (Through May 15)

December 31, 2008 May 15, 2009

• Units on the market 56 76
• Average sales per month 4.5 3
• Our absorption rate* 12.4 Months 25.3 Months

*Absorption Rate: The number of months that it would take for all condos presently on the market to be sold. A balanced market is around 5 months.

• Sales % of original list price 85.3% 85.2%
• Sales % of list price (at time of sale) 92.7% 94.57%
• Median Sales Price $339,950* $278,750*

*The median sales price for the first 4.5 months of 2009 is down 18%

Here are some statistics by price range:

0-299,000 300,000-399,000 400,000-499,000 500,000+

Listings 18 22 21 13

Sold (6 mo) 10 3 1 4

Pending 0 2 2 2

Average Days on Market (sold)

246 195 13 470

Conclusion: Since there have been more condos coming on the market than have been sold, there is still downward pressure on prices and the inventory remains high. Buyers are clearly in control and will stay in control until there are three consecutive months with more residences being sold than come on the market.

The key to selling in this market is to price the property correctly.

This one bedroom, free standing condo had been on the market for nearly a year. The sellers decided to enter into a short-term lease with a couple who was renovating their home as long as they could continue to market the property. The tenants moved in and tastefully decorated their temporary home. The next buyers who came in bought it!

Instant Convert

I became an instant convert. The current market certainly requires that homes be priced properly and effectively marketed, but staging seems to have a larger role than ever before. Statistics show that staging a home can increase the selling price by up to 7%, but there are still skeptics everywhere.

HGTV states on its website that "in a cold market, a properly-staged home can sell in half the time." It now offers several series that focus on staging and it will have a separate staging special, "Staging Secrets and Myths," on Sunday, April 12 at 8:00 PM.

Clutter, Clutter Everywhere

Occupied homes present a unique challenge. It is the opposite of home decorating. A home decorator helps home owners to personalize the home to their own tastes and needs. A home stager, on the other hand, depersonalizes the home so that buyers can more easily visualize themselves in the space.

Since this can be threatening to sellers, and therefore dangerous to the welfare of the real estate agent, I have made special pricing arrangements with talented stagers to provide 1.5 hours with my sellers to provide them with a "to do" list. I provide this at my expense and use it as an incentive to secure listings.

For the most part, it's simply a case of "packing now" rather than waiting until the house is under agreement. In other cases, it requires some serious sprucing up. In either case, the result has been very encouraging.

Painting on a Blank Canvas

Vacant homes and condos offer a unique opportunity. Local furniture stores will, for a fee, stage a home as long as it is not occupied. I recently listed an updated, adorable 2 bedroom 1056 square foot ranch condominium that was vacant. The first two open houses and several showings resulted in two primary comments: 1. I'm not sure my furniture will fit in here; 2. Since it was built in the late 70's, it's too old for me.

Bring on the Stagers!

I called a stager and told her that I wanted to give buyers an idea of the real size of the rooms and to make the home feel more current. The owners agreed to a two month staging agreement and the furniture was delivered.

The results have been amazing. The most enjoyable aspect for me has been seeing the look on the people's faces as they entered the condo. Of course, an offer will be even more enjoyable.

You can view the staged condo and take a virtual tour at www.273seawardbend.com.

We had another winter storm today, and although we did not get the foot of snow that some off-Cape communities received, we got a mix of ice and snow that made the roads quite treacherous. The good thing about a day like today is that it creates some unplanned "free time" to get some nagging projects done.

So what project did I get done: I prepared my 2009 Boston Red Sox schedules for mailing. Even with a winter wonderland outside, the home opener is just 34 days, 17 hours, and 35 minutes away (as of this writing). There is hope!

You're probably asking yourself, "why in the world would comedian Ray Romano would ever consider buying a luxury condo in Cape Cod?" First of all, Mr. Romano is no stranger to Cape Cod. As a matter of fact, Mr. Romano was the Celebrity Guest Conductor for the 22nd Annual TD Banknorth Pops by the Sea concert back in 2005. Need more reasons why you might see the "Everybody Loves Raymond" guy purchase a Cape Cod condo? Take a look at...(read the rest of this entry)

Now that 2008 and the elections are behind us, we are all trying to determine how best to deal with the challenges that now face us. As is always the case, the challenges differ for each of us and the actions that we must take differ as well. This is never truer than in real estate.

It is safe to say that everyone now agrees that we are in a buyer's market. The debate, however, is whether this is a good time to be a buyer. The answer is "it depends." It depends on the buyer's personal goals and financial readiness. There is no question that the large inventory, the drop in prices, and the low interest rates point to "yes." There are three questions each buyer must answer before even thinking about buying:

1. How strong is my credit history?

2. Do I have sufficient cash to cover a down payment and closing costs?

3. Am I confident that my job will not be eliminated?

A "yes" answer to the above three questions would mean that this may in fact be a very good time to buy.