Last year I wrote a blog post about how Seller’s should not list their property if they really don’t need or want to sell. I thought now that we are a little into 2009 with a new President in office, I would give you a snapshot of the current market conditions here in Provincetown and the surrounding area.
Since the significant drop of the stock market, Buyers of second homes in this part of Cape Cod have put everything on hold for a variety of reasons. Stock values have declined eliminating wealth. When people see the values of their portfolios decline, people are hesitant to purchase a luxury item. This part of Cape Cod, most properties are second homes, which is considered a luxury.
Another huge factor is the concern of a job loss. If people feel they might lose their job, they will not invest in a luxury item.
Other factors play a significant role as well, such as the value of their primary residence has declined (again, wealth effect), it is tough to obtain a favorable mortgage, etc.
However, serious qualified Buyers are buying and the market is not dead as the news media may make it sound. The major shift is Buyers will ONLY buy if they find a great deal on a property priced extremely well, a short sale, or a foreclosure. I am delighted to say that our office took a listing from a Seller who listened to us and wanted to sell. Guess what?? We have the property under agreement from a strong, qualified Buyer in just a few shorts weeks!!
Buyers are out there and they are buying! However, Buyers are no longer buying market priced homes. Buyers do a significant amount of their due diligence prior to even meeting with me to discuss making a purchase. Buyers are well aware of properties that have lingered on the market for a significant amount of time with only small price decreases. Buyers will stay away from those properties because they feel the Seller is not serious and will avoid those properties all together. And, if I am acting as a Buyer Representative, I could not advise the Buyer to do anything different under present market conditions!
Sellers: Please do not even list your property if you do not need to sell or want to sell. And, more importantly, work with a reputible Real Estate Agent who will be honest with you and won’t tell you what you want to hear- but, tell you reality. It will do you no good to list your home if you don’t care about selling and/or over pricing the home. The real estate market does not need more inventory!
If you wish to discuss market conditions or your personal goals and objectives with me, please feel free to phone me at 508-237-4632 or e-mail me at Rick.Tourgee@Century21.com. I highly encourage you to visit my Provincetown real estate website for more valuable tips and to view the current listing inventory.
