Home prices are continuing to rise due to less buildable land and other factors, but, say Cape Cod, Massachusetts Realtors, overpricing by sellers is causing home sales to fall through as banks use more caution in loaning money to buyers.

"Cape Cod being a penninsla, or island if you consider the Cape Cod Canal, is rapidly running out of buildable land," says Realtor Bob Davis, "but the good news is, if you are a buyer, is that prices do seem to be rising more slowly than over the past two to three years. This is certainly a good time to look. Remember, the perfect home may not be on the market when you are looking. Instead, look for a home that you can later make perfect! Don't wait. As they say, 'don't you wish you'd bought an overpriced home a couple of years ago?'"

Advises Realtor Donna Schulze, "Sellers should consider listing now for maximum marketing exposure in April and May which is the hottest selling season on the Cape. Sellers, please enroll the services of a licensed appraiser or local Realtors to help price your properties. This is not the time to be unrealistic especially if bank financing will be required to fund a home purchase. Banks are very cautious; although money is plentiful, homes have not been making value on appraisals. This happens when the demand for housing exceeds supply in an area. Homesellers with property in excellent condition will experience the joys of much more profit.

She explains, "Most sales of residential homes have been in the $200,000-$400,000 range. The median price of pending homes is currently around $290,000. Several homes between $500,000 - $1,000,000+ are experiencing difficulty in this current ecomony.Out of 1300 properties in the over $500,000 range only 150 are pending this quarter and 100 sold! 500 condominiums are in active inventory, 177 are under agreement, 170 units sold, so you can see inventory is limited. But, some very good values have been coming on in the $250,000 to $300,000 range experiencing multiple bids, if in good condition.'Product' over 'location' seems to be prevailing in some situations making it difficult for buyers to make quick decisions on a purchase. Recently a few of our customers/clients had lost out on super buying opportunities by just waiting a weekend or day to make a decision. Be prepared to move forward immediately if you are a buyer. Study area values and the market."

Continues Schulze, "Prices seem to have stabilized and are much more consistent. Recently offers that I have personally taken have been 10 percent below listing price especially on properties that have been on the market for three months or more forcing sellers into larger reductions of 5 percent - 7percent to make the deal happen. More educated Buyers look at the "days on the market" and original start list price. The average days on the market for pending homes is now 104 days, 21 days longer previous quarter. Statewide the price of houses is up 12 percent over last year. Appreciation rates should moderate as rates rise. We have a lack of homes under $250,000 and condominiums under $150,000 so these properties are getting snapped up by the first-time home buyers or investors for rental properties. Statewide, condos are up 16 percent over last year.Overall listing prices are stable and bank rates for 30-year mortgages are staying in the 5-6 percent range with 0 points! First-time homebuyers who have been waiting for a shift in the Cape prices please note that this is the best time to buy before the spring rush. We only have 6.7 months supply of homes at the rate they are selling. Neglected, estate sale or abused properties should consider advance inspections such as septic certification, termite and pre-home inspections by licensed ASHI inspectors to detect and cure defects in the property."

"While I have heard many Cape Cod Realtors saying the market has slowed some, this has not occurred in my own practice," says Realtor Karen Stefani, "As has been the rule for some time, if you are in the under $300,000 price range, homes that are in good condition still sell quickly." J

Click here to view current Market Conditions in your location.

Published: March 18, 2003

Use of this article without permission is a violation of federal copyright laws.