STATE OF THE MARKET

(If you read State Of The Market to its conclusion, you will see the changes that have occured during 2009, with an update as recent as January, 2010.)

We're surrounded by water. About 55% of the Island is held in some form of conservation. Our Town Meeting enacts zoning changes yearly to help curb development.

We also follow nationwide real estate trends. So, we are not immune to what you read about right now in the press (or on the internet). We are, however, different in some respects. It depends on what you want to buy, what area of the Island you are looking in, and, of course, the price. (Let’s remember the supply/demand theory put forth by Adam Smith.)

Our inventory of homes and land for sale has increased. We have seen corresponding “price adjustments” in some homes in some areas. Not all.

If you want to buy waterfront property it’s still appreciating. There is much less of it.

If you want a specific area of the Island you might not find exactly what you want, or, you might find the pickings slim so you’ll pay a fair price.

If your price range is under a certain level you might find there are some homes or parcels of land available, but maybe not in your price range.

If you are a second home buyer you are probably going to be buying from a Seller who is selling their second home. Most Sellers don’t have to sell, just like you might not have to buy. You are buying because you want to, they are selling because they want to. Maybe the price of that home is not as flexible.

Except for a few areas of the Island, no two houses are exactly the same. Thus, making direct comparisons to help determine the selling price is more difficult, especially if one does not know the interior of the home that is being used for comparison. How many homes do you think I’ve seen the inside of since I’ve been in business? Sometimes experience counts.

Next....

Here’s what I’ve found works best.

Send me an email telling me if you are interested in Buying or Selling. Tell me the best day and time for me to call you. We can go from there.

Thanks, and I look forward to hearing from you!

UPDATE: October, 2009.

I've been doing this since 1982. Been through several downturns and interest rates at 17%. Actually sold several houses with Seller "buy downs." You may not have heard of them but if you want to know more, email me.

January through May of 2009 were ...shall we say... dismal? Actually the worst I've ever seen. Everybody and everything was in a deep funk. Around Labor Day things started picking up. Showings increased and kept increasing through June and July. Showings means brokers have people looking at property. We want people to look at property and then buy a home or piece of land. That was not prevalent in June or July. Then came August. I think half the people who looked at property in August and September took some type of pill that forced them into making an offer. I never saw such a pill but I swear some people took them. Offers! Offers that were negotiated to signed offers! Closed sales! Happy Buyers and Sellers... and brokers!

Confidence began to return to our real estate market. It follows the confidence that returned to the stock market. Some people actually made money in the stock market this year and that helped our real estate market. The selling has continued through today, October 8. I had four offers in the last seven days. Who are the Buyers? Investors and some very savvy second home owners. The investors are year round residents who bought at the bottom in the early 1990s. That’s what you want to see. When that type of investor buys it's an excellent sign that we are at bottom.

What else do I look at? Well, land sales were so far off for the first seven months of the year I didn't think there would ever be another land sale. In mid July there were two lots under contract. By the end of August there were eleven lots under contract. Why? Sellers decided that they wanted to sell their land and took the offers presented. Interestingly, there have been no land foreclosures in the past two years. We are definitely at the bottom in land. We'll bounce along bottom for a while.

House prices have also adjusted. There have been several house sales off Cliff Road that I feel represent the bottom in that area. On the outskirts of Town (but within walking distance) we are nearing bottom. Waterfront? Well, it never went down and won't... there just isn't enough! If you want to know about other areas email me.

We will see an increase in foreclosures for properties in the central part of the Island in the next six months. There isn't nearly as much work as there used to be and year round people who purchased homes in 2004-2006 bought at the top and financed too much of the purchase price. Unlike vacation areas of the Island this portion of the market will suffer through 2010 and into 2011.

Overall, however, I'm looking for continued improvement in the market in the next year in areas that appeal to the vacationer. Newer homes are still in demand and will continue to sell before "fixer uppers." Check out Nanahumacke Preserve for a new home at a most attractive price. This community of only thirteen lots surrounded by conservation land now has two completed homes that have been sold and two homes that have been sold and are under construction. As of October, 2009 I have one under construction and for sale and two lots with house designs approved. Email me for plans and prices.

UPDATE: January, 2010

The past 90 days have seen a significant uptick in our market. Since October 6, 2009 there have been 87 properties that have sold to happy, new owners. Currently there are 29 pending sales. Since the first 9 months of 2009 saw only 187 properties change hands we are definitely in better shape.

Nanahumacke Preserve, just a mile and half from Cisco Beach and about the same distance from Town, has seen significant activity and sales. Of the 13 parcels available 2 completed homes sold betwen 2008 and 2009. Two lots with custom build orders were sold in late 2009, and we just closed on a vacant lot in mid December. That's quite a change. One home is under construction and available for purchase at $1,995,000 and will be ready for June, 2010.

If this update is too out of date for you, email me for an update to the update!!