October 2018 Chatham Market Report

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1 The annual pumpkin sale at the Congregational Church in Chatham The pumpkins are brought from Navajo Land, unloaded by the Boy Scouts and other helpers. The profits benefit children s activities in Chatham. October 2018 Chatham Market Report We are enjoying lovely warm weather here on the Cape with the temperatures reaching into the seventies some days. The streets are crowded with visitors enjoying our charming boutiques and restaurants with the very freshest seafood. This is a perfect time of the year for golf...fishing...walking on the beach... and appreciating what a beautiful place the Cape is in all seasons. Chatham sales are improving slightly from last year at this time. Do notice the median sale price is up 22%. Inventory and months of supply are down, indicating a demand for homes. Evelyn Doane Your Cape Cod Realtor Page 1

2 Harwich sales are down a bit, as is inventory. The months of supply are really low. Again this is indicating a demand for homes. Brewster sales are up nicely at 23.5% more than Do notice the significant drop in months of supply and days on the market. Orleans sales are similar to 2017 but the median sale price is up by 19%. As with the other towns, inventory is down...potential sellers take note of this! Evelyn Doane Your Cape Cod Realtor Page 2

3 The median sales price does bounce around. Currently it is down to around $600,000. Months of supply is rising slightly and there are homes to choose from at just about all price levels. Pendings and solds are on the rise as there is quite a bit of activity during the summer resulting in fall closings. If you are interested in buying a home, the majority are in the lower price ranges. The always important sales to list price ratio is around 95%, showing realistically priced homes for sale. While the majority of homes sold are under $900,000, there has been an upsurge in homes priced over $1,200,000...quite a few for cash. Evelyn Doane Your Cape Cod Realtor Page 3

4 The next two pages are from my Keeping Current Matters Blog. This is what the experts are saying. Here is a very good explanation of softening home prices...a definite difference from falling home prices. Are Home Prices Softening or Are They Falling? We are beginning to see reports that more housing inventory is coming to the market and that buyer demand may not be increasing at the same pace it did earlier this year. The result will be many headlines written to address the impact that these two situations will have on home values. Many of these headline writers will confuse softening home prices with falling home prices, but there is a major difference between the two. The data will begin to show that home values are not appreciating at the same levels as they had over the last several years (softening prices). This does NOT mean that prices are depreciating (falling prices). Here is an example: Over the last several years, national home values increased by more than 6% annually. If you had a home worth $300,000 at the beginning of the year, it would be worth $318,000 by year s end. If the appreciation rate falls to 4%, that $300,000 house would be worth $312,000 at the end of next year a $6,000 difference. The price of the home did not fall. It just didn t increase at the level it had the previous year. Appreciation rates are projected to end this year at approximately 5%, and then drop to somewhere between 4-5% next year. This drop in appreciation rate will cause home price increases to soften. Again, this does not mean that home prices will depreciate, but instead that they will appreciate more slowly. Bottom Line: Be careful when reading headlines that discuss home values. Some headline writers will be legitimately confused and will use the word falling in place of softening. Others will realize that the headline Home Prices are Falling! will get more clicks than Home Prices are Softening and will intentionally write the more compelling headline. Read the article. If the word depreciation is not mentioned, home values are not falling. Evelyn Doane Your Cape Cod Realtor Page 4

5 Mortgage Interest Rates are Still Going Up... Should You Wait to Buy? Mortgage interest rates, as reported by Freddie Mac, have increased by close to a quarter of a percent over the last several weeks. Freddie Mac, Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors are all calling for mortgage rates to rise another quarter of a percent by next year. In addition to the predictions from the four major reporting agencies mentioned above, the Federal Open Market Committee recently voted unanimously to approve a 1/4 percentage point increase in the primary credit rate to 2.75 percent. Historically, an increase in the primary credit rate has translated to an overall jump in mortgage interest rates as well. This has caused some purchasers to lament the fact that they may no longer be able to get a rate below 4%. However, we must realize that current rates are still at historic lows. Here is a chart showing the average mortgage interest rate over the last several decades: Bottom Line Though you may have missed the lowest mortgage rate ever offered, you can still get a better interest rate than your older brother or sister did ten years ago, a lower rate than your parents did twenty years ago, and a better rate than your grandparents did forty years ago. Evelyn Doane Your Cape Cod Realtor Page 5

6 Now what does all this information mean to you? If you are a seller...buyers are still looking and this may be an excellent time to consider putting your house on the market and avoiding all those expenses such as mortgage, insurance, snow plowing, heating, taxes, etc. Do enlist the help of an experienced Realtor to price your house correctly. If it is attractive and priced right...it will sell. You do not do yourself a favor by pricing it too high and it lingers on the market. It goes without saying that if you want to sell your home, make it the most attractive in your price range. Remember curb appeal with fall flowers and a well raked lawn! Inside, make the place clutter free so your prospective buyers can visualize how their possessions will look in the spaces. If you are a buyer...what a great time to buy with motivated sellers and the time to get your new home ready to enjoy for next summer! Interest rates are projected to go up and the experts feel a 3% appreciation in home prices is on its way too. I hope you have found this report useful. If I can help you in any way, please do be in touch. Would you like a free no obligation Comparative Market Analysis to find out what your house is worth? Please call me. Best, Evelyn Evelyn Doane edoaneccod@outlook.com William Raveis 37 Cross Street Chatham, MA Chatham, MA - Single Family Properties July, 2018 Address BR List Price ($) Sale Price ($) Market Time (Days) Square Feet 104 Bucks Creek 4 $895,000 $880, , Clark Metters 4 $999,900 $960, , Cynthia 3 $1,199,000 $1,100, , Emery 3 $749,999 $720, , Heritage 3 $435,000 $425, , Wentworth 4 $1,595,000 $1,485, , Jessies 3 $1,199,990 $1,202, , Bobbies 2 $324,000 $334, Countryside 3 $510,000 $500, , Dune 4 $2,500,000 $2,300, , Melody 3 $699,000 $705, , Stage Harbor 4 $1,595,000 $1,595, , Crowell 2 $379,900 $340, ,120 5 Shaw 4 $2,650,000 $2,500, , Stony Hill 5 $899,000 $850, , Stillwater 2 $549,000 $549, , Barcliff 3 $1,749,000 $1,700, ,200 July Averages 3 $1,113,458 $1,067, ,167 Evelyn Doane Your Cape Cod Realtor Page 6

7 Chatham, MA - Single Family Properties August, 2018 Address BR List Price ($) Sale Price ($) Marke t Time (Days) Square Feet 11 Meadowview 3 $675,000 $665, , Seapine 4 $5,695,000 $5,300, , Wells Hollow 3 $549,000 $525, , Countryside 2 $599,000 $585, , Seaview 3 $2,095,000 $2,025, , Meetinghouse 3 $405,000 $400, , Deer Meadow 4 $899,900 $875, , Whidah 5 $3,490,000 $3,380, , Diane 3 $1,099,000 $1,025, , Dairy 2 $459,000 $472, August Averages 3 $1,596,590 $1,525, ,766 September, 2018 Address BR List Price ($) Sale Price ($) Market Time (Days) Square Feet 114 Cranberry 5 $4,995,000 $4,700, , Cross 3 $1,675,000 $1,675, , Tanglewood 3 $429,000 $426, , Mousehole 4 $1,695,000 $1,660, , Seastrand 3 $599,000 $592, , Cross 6 $2,195,000 $2,000, , Vineyard 3 $2,695,000 $2,600, , Malabar 2 $319,000 $285, Morton 3 $449,000 $400, , Overlook 2 $599,000 $600, , Training Field 3 $625,000 $610, , Cross 5 $1,699,000 $1,538, , Ridgevale 3 $1,199,999 $1,202, , Old Queen Anne 3 $689,000 $650, , Meadow View 3 $1,099,000 $1,052, , Old Harbor 4 $699,000 $625, , Deering 4 $725,000 $675, ,100 September Averages 3 $1,316,823 $1,252, ,254 Evelyn Doane Your Cape Cod Realtor Page 7