Tag: Cape Cod real estate

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Demand For Vacation Homes On Rise – NAR

From Realtor.com/blogs

781 boardwalk

More consumers are seeking the relaxation of getting away, as vacation-home sales rose 10.1% to 553,000 in 2012 from 502,000 in 2011, according to data from the National Association of Realtors.

When surveyed, buyers listed a number of reasons for purchasing a vacation home: 80% plan to utilize the property for vacations or family retreats, 27% intend to use it as a primary residence in the future, 23% hope to rent it to others and 23% saw the home as a good investment opportunity.

Conversely, investment-home sales dropped 2.1% to 1.21 million last year from 1.23 million in 2011. However, investment-home sales lingered well under a million during the market downturn, according to NAR.

Vacation-home sales equaled 11% of total transactions in 2012, which remained unchanged from 2011. The portion of investment sales, on the other hand, totaled only 24% in 2012, down from 27% in 2011.

“We had a strong stock market recovery, which helps more people in the prime ages for buying vacation homes. Attractively priced recreational property is also a big draw,” said NAR Chief Economist Lawrence Yun.

With the buzz of an investor-driven housing recovery going around, Yun agrees that investor presence continues to thrive.

“Investors have been very active in the market over the past two years, attracted mostly by discounted foreclosures that could be quickly turned into profitable rentals,” Yun said. “With rising prices and limited inventory, notably in the low price ranges, investors are likely to step back in coming years.”

In 2012, the median investment-home price was $115,000, a 15% jump from $100,000 in 2011. Median vacation-home prices saw an even greater increase, hitting $150,000 compared with $121,300 in 2011. This represents a greater number of more expensive recreational property sales in 2012, NAR notes.

In 2012 the median price for a condo sold in Provincetown was $399K, up 11% from 2011.  The median price for a single family home sold was $800K, up 40% from 2011. 

Investment-home buyers had a median age of 45, earned $85,700 and purchased a home that was considerably close to their primary residence. Of the investment buyers, 35% purchased more than one property.

“Property flipping modestly increased in in 2012,” Yun said. “However, this isn’t flipping in the sense of what took place during the housing boom. Rather, investors generally are renovating and improving properties before placing them back on the market to resell at a profit.”

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Why Is Inventory So Low?

Excerpts taken from a great post by Mike Simonsen of Altos Research.

 Three Reasons Why Housing Inventory is So Low

 by MIKE SIMONSEN

There’s no question about it, the operative theme of the 2013 housing market isrestricted supply. Ever since the bubble burst in 2006, we’ve been hearing about the dangers of over supply, of the massive “shadow inventory” out there. Yet we’re living in a vastly different reality. There are 40% fewer homes on the market now than there have been during February in the last few years.

Percent of homes with Price ReductionsInventory of actively for sale homes. Single Family Homes. Altos 20-city (national) composite. Data as of February 22, 2013. Source: Altos Research

Mid-January typically marks the seasonal low of available housing inventory. The fewest homes are on the market after the holidays. But pretty quickly they start coming on the market to prepare for spring. Inventory gets added until the first week of July, when people start looking forward to the Autumn.

Last week we commented about the rising prices that have resulted from this restricted supply. Imagine what would happen to the price of oil if Saudi Arabia, Russia, The US, China, Iran, and Canada were all offline.  It’s a, ahem, crude analogy, because housing is less a commodity than oil. But the fact is, we’re facing unprecedented few homes available for sale.

Why is that? What happened to all this “Shadow Inventory” that was going to dump on to the market?

You can boil the low-inventory reality down to three primary factors:

1-Under-Construction

Since 2007, new housing starts have been anemic. The long-term average construction rates are about 1.5MM homes per year. In the last six years, we’ve averaged well under 1MM. And since 2009, the average is closer to 500,000. Meanwhile population and household formation keeps on trucking. The over-construction that happened in the bubble is a distant memory. See the chart to the right. Construction volume under the orange line are “undersupplied” conditions. The homebuilders imploded so profoundly after the bubble, that we haven’t had this few new homes being built since 1959.

Expect this trend to continue for several more years. It’s difficult to ramp up housing production quickly. And we’re a long way below normal.

Percent of homes with Price ReductionsInventory of actively for sale homes. Single Family Homes. Altos 20-city (national) composite. Data as of January, 2013. Source Census Bureau viathemortgagereports.com

2-The Reverse Shadow Inventory Dynamic

Rising home prices have led to fewer, not more, existing  homes coming on the market. You might call this, ironically, the “Reverse Shadow Inventory” dynamic.

When the Shadow Inventory meme emerged during the bubble, the bearish argument followed: As soon as home price tick back up, there are going to be millions of people (and banks) who want to unload. Therefore supply will rise and prices will fall again.

In actuality, it seems the psychology has been reversed: As prices have climbed, those who (still) own their underwater homes finally see light at the end of the tunnel. The longer they hold, the closer they are to recovery. Why sell now if you don’t have to? Maybe you’ll make it out alive!

Banks are acting similarly. The owners of underwater mortgages have no incentive to unload quickly. Their assets are appreciating. Furthermore, as home prices increase, fewer and fewer people are at risk of default. The Shadow is shrinking in the noon-day sunshine of rapidly re-inflating home values.

3-Government Policy

Finally, it is no coincidence that essentially all housing policy, all programs, laws, and incentives have been focused on stimulating demand and restricting supply. The Fed is aggressively keeping interest rates low. HARP, HAMP and related mortgage crisis programs are designed to keep people in their homes. They have been successful. Politically, it’s near impossible to institute a program that might help home buyers. For whatever reason, the bureaucrats are much more fond of home owners. That’s unlikely to change.

We’re in a hangover of short supply after the burst bubble. Low new construction, low incentive for existing homes to sell, and a government that wants people to stay put. Like a good hangover, these are long, slow, painful conditions.  We’ll ease slowly out of the fog in the next few seasonal cycles.

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February MAR Report

 The Massachusetts Association of REALTORS® (MAR) reported today that February pending home sales were positive for the 22nd straight month compared to the year before, but winter weather kept gains modest. Pending sales figures (also called homes under agreement) are a leading indicator of actual housing sales in Massachusetts for the following 2-3 months.

“While we were still in positive territory, the combination of low inventory and several weekends snow storms, including a blizzard, kept buyer activity relatively minimal in February,” said 2013 MAR President-Elect Peter Ruffini, regional vice president at Jack Conway REALTORS® in Norwell. “After a ‘non-winter’ in 2012, the fact that pending home sales were still up in February is a good sign for the market.”
The number of single-family homes put under agreement in February was up 1.1 percent compared to the same time last year (3,041 homes in 2012 to 3,075 homes in 2013). This is the 22 nd straight month of year-over-year increases. On a month-to-month basis, single-family homes put under agreement were flat compared to 3,076 homes put under agreement in January 2013.
The number of condos put under agreement in February was up 11.9 percent compared to February 2012 (1,146 units in 2012 to 1,282 units in 2013). This is the 22nd straight month of year-over-year increases. On a month-to-month basis, condos put under agreement went UP 5 percent from 1,216 units in January 2013.

 

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bungalow 58

58 Franklin St $1.059M

Gorgeous newly renovated home with pool in the near West End

bungalow 58 has been totally renovated with exceptional attention to detail. This is a 2 bedroom 2.5 bath, 1,844 square foot  home with  a large family room and full bath on the lower level.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The stunning pool environment has a stone surround, natural rock walls, beautifully designed garden areas and a charming 160 square foot pool cabana.

 

 

 

 

 

 

 

 

The kitchen has double Dacor wall ovens, a five burner gas cooktop, a built in Silhouette wine cooler, and Bianca Carrera marble counters. There is a separate dining area and a large living room with a fireplace.

 

 

 

 

 

 

 

The master bedroom and the guest bedroom/den have sliders to the pool area. There is dyed oak hardwood throughout the main floor and and aged white oak hardwood in the family room.

bungalow 58 is located in the near West End , just a few minute walk from Commercial Street restaurants shopping and beaches. Give us a call and we will get you a full marketing package. bungalow 58 is being offered at $1.089M.

 

 

 

 

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Two Recent Truro Sales

6 Cooper Terrace $915K

These two recent Truro sales represent an interesting and diverse segment of the Truro single family home market. New houses, one brand  new and one built in 2002 illustrate the quality of homes available and the  great value available in Truro . 6 Cooper sold at $446 per square foot while 56 Castle Road sold at $257 per square foot. I know that most buyers, sellers and agents on the Cape don’t often use per square foot price as an important indication of value, but I just cant stop myself from using as it was embedded in my city training.

6 Cooper Terrace $915K

6 Cooper Terrace a 3 bedroom 2 bath 2,048 sf house sold for $915K on February 25 . (from MLS) Enjoy privacy and views of Cape Cod Bay and the Hopper house from this outstanding, architect designed contemporary built in 2002. The great room with soaring windows, including living and dining areas with an open kitchen, is on the first floor. The first bedroom and bath are also on the first floor while the second bedroom and bath, as well as a sleeping loft overlooking the great room, are on the second floor. There is a screen porch and patio off the first floor, and a deck looking out to the bay off the second floor. There is also a large outdoor shower. This home has a four-bedroom septic and sits on 1.42 acres, ample acreage for a guest cottage and/or additional bedrooms in the house.

 

 

 

 

56 Castle Road $722,500

56 Castle Road a 4/3, 2,808 sf house sold for $722,500 on March 1. (from MLS) Spacious brand new contemporary in a terrific Castle Rd., location. This brand new home is well sited to afford nice privacy with lovely natural views and vistas of the marsh. Open airy feel to the main living level with vaulted ceiling and over sized sky lights.In addition there is a master bedroom with bath and an added guest room. Full social bath.Lower level has 2 additional bedrooms,huge family room with sliders for extra light and 1-1/2 baths.All living areas and bedrooms are generously sized. There is a very large wrap around deck for outside living. Great home for large families, friends and parties. Super rental potential!

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West End Antique With Separate Cottage

29 Tremont St $1.095M

One of our favorite properties that represents all that Provincetown has to offer. It is an authentic Cape Antique, with gardens, 3 bedrooms, privacy, charm, a separate cottage and the best location in the west end.


 

 

 

 

 

 

This single family home with an adorable separate cottage is one of those Provincetown properties that people just fall in love with. If you are seeking a sense of place just the approach to this house nestled on a private lane takes one back to another time. It is sited on the corner  of Tremont Street and Atwood Street, the most charming lane in the West End and is surrounded by wonderful perennial flower and vegetable gardens. This is a  3 bedroom, 2 bath home with a private detached cottage of 1 bed and 1 bath.

 

 

 

 

 

 

 

 

The The main floor of the house consists of a living room, two bedrooms, and a full bath, and is surrounded by a lovely fenced in yard with flower and vegetable gardens.

 

 

 

 

 

 

 

The second level has a kitchen, a family room, a separate dining room, a bedroom and a full bath. A full wall of sliders opens to a large deck with hot tub. A newly carpeted third bedroom completes this level. The kitchen has new appliances, and the entire house has new yellow pine hardwood floors.

 

There is a large roof deck with views to the harbor, Long Point, the monument and Truro beyond. The decking and garden areas are charming and comfortable.  The large deck off the kitchen and family room is big enough for a dining table and also holds the built in hot tub. There is a private brick patio around the cottage.

 

 

 

 

 

 

 

 

 

 

The adorable stand-alone cottage has a new kitchen, new carpeting and a sleeping loft, and is perfect for guests or as an artist’s studio. It is as comfortable as it is efficient.

This charming home is being offered at $1.295M.

 

 

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Gorgeous West End Water Views

This gorgeous 3 bedroom 3.5 bath home is nestled atop the highest point in Provincetown. Privately sited in the exclusive Telegraph Hill neighborhood this home provides the best of casual and  beach living along with the amenities that only a substantial home like this can. Telegraph Hill is a 5 minute walk in to the heart of the West End with all the shopping, restaurants and entertainment choices that Provincetown has to offer.

Side view of 9 Telegraph Hill
9 Telegraph Hill

 

 

 

 

 

 

 

 

 

The entry to the home is down a curving driveway with steps up to a gently sloping yard that  surprises with its panoramic view of the water.

 

 

 

 

 

 

 

The sunlit entry gallery is 35 feet long and lined with windows with a dramatic open staircase up to the master suite and down to the garage and utilities below.

 

 

 

 

 

 

 

The living floor is dramatic as it’s full length is a wall of windows with open views of the bay and ocean beyond. There is a rich wood buffet separating the dining room and the living room with a floor to ceiling fieldstone fireplace.

 

 

 

 

 

 

 

The chefs kitchen has delightful views to the water, a good sized pantry with a wine cooler and a sun filled dining nook that looks out over the water.

 

 

 

 

 

 

 

 

The master bedroom suite takes up the entire second floor and is utterly unbelievable. Modeled after a ship captains quarters, it has two sitting areas, and a large fieldstone fireplace. The master bath and dressing rooms are the epitome of luxury and comfort.

We are hosting an open house Saturday March 9 from 11-1. If you are in town please come by and say hello.

 

 

 

 

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January Sales At Highest In Five Years.

News from The Warren Group:

Bay State January Home Sales At Highest Level In Five Years

Condo Sales Break 1,000 Mark For First Time Since 2008

The Warren Group

The strong sales trend in January in just the beginning of a hot spring selling season. Timothy M. Warren Jr., CEO of The Warren Group, weighs in.

Single-family home sales in Massachusetts rose more than 10 percent in January to 2,680, reaching the highest level since 2007, according to new data from The Warren Group, publisher of Banker & Tradesman.

January home sales in the Bay State were up over last year’s 2,436 sales. This is the highest January sales volume for single-family homes in Massachusetts in five years, when there were 2,953 transactions in January 2007.

Jan2013MASalesChart

We ended 2012 on a pretty positive note, and this is carrying into January,” said Timothy M. Warren Jr., CEO of The Warren Group. “Recent pending sales data are a hopeful sign for a strong spring market. And given low mortgage rates and steady prices, there are positive signs that 2013 will be a second year of recovery.”

The median sale price of single-family homes in Massachusetts increased for the fourth consecutive month in January. Median sale prices rose 6.8 percent in January to $277,750, up from $260,000 in January 2012. This is the highest median home price for January in three years.

“Low inventory is slowly driving up prices. This should in turn give sellers more confidence to put their homes on the market,” Warren said.

Condominium sales statewide also rose in January, increasing almost 11 percent to 1,006 from 907 in January 2012. This is the first January since 2008 where home sales broke the 1,000 mark.

The median condo price in January slipped almost 2 percent to $240,000 from $244,500 in January 2012. This is the lowest price for condos statewide since 2009, when the median price was $209,900.

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WSJ Calls A Sellers Market

Below is Nick Timiraos’s article in the Wall Street Journal. We are certainly seeing different degrees of this dynamic in our local markets.

Housing: It’s Becoming a Seller’s Market

By Nick Timiraos
National Association of Realtors

The National Association of Realtors said on Thursday what home buyers in many parts of the United States have known for months: it’s becoming a seller’s market.

The number of homes listed for sale in January fell by 4.9%, leaving 1.74 million properties on the market. That’s the lowest since December of 1999, when there were 1.71 million homes on the market. By contrast, there were 2.91 million homes on the market two years ago at this time.

After adjusting for seasonal factors, home sales rose by just 0.4% in January, to an annual rate of 4.92 million units. Still, that’s up from 9.1% one year ago.

The upshot is that there’s a growing pool of buyers chasing a shrinking supply of homes. If the trend holds, prices will keep going up. At the current pace of sales, it would take just 4.2 months to sell the current supply of homes available for sale, down from a 6.2 months’ supply one year ago.

While inventories typically increase in the spring, the Realtors’ group has expressed growing concerns that sales volumes are being held back by the lack of choice. This is good news for homeowners who have watched home prices drop over the last six years, but it’s bad news for buyers—and for anyone that makes their living selling real estate.

Inventory declines have been the most dramatic in California, Arizona, and other markets that witnessed some of the largest home price declines. Those cities have large numbers of underwater borrowers—people who owe more than their homes are worth—while many others may have equity but aren’t willing to sell because prices have fallen so far.

Investors have also been aggressive in buying up properties that are selling for less than their replacement cost.

National Association of Realtors

Home sales could rise to 5.2 million units this year, an increase of nearly 12% from last year, according to economists atGoldman Sachs GS +2.13%. They base their forecast on household formation and demographics, which both suggest rising demand for housing in the coming years, and affordability measures such as mortgage rates and home prices.

But the economists note that there’s a considerable amount of uncertainty that could make those targets hard to hit, particularly if there’s nothing for would-be buyers to purchase.

Follow Nick @NickTimiraos

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Sales Edge Up In ‘Sellers Market’

USA TODAY article indicating national trend of sales being affected by low inventory.  Local implications will be explored in later posts.

Ray Goldbacher, USA TODAY10:32a.m. EST February 21, 2013

Sales of previously owned homes edged up in January, held back by a shortage of homes for sale, according to the National Association of Realtors.

Single-family home sales increased 0.2% to a seasonally adjusted annual rate of 4.34 million in January vs. 4.33 million in December, and 8.5% above the 4 million-unit level in January 2012.

The median single-family home price was $174,100 in January, up 12.6% from a year ago.

Lawrence Yun , NAR chief economist, said tight inventory is a problem and, as a result, “We’ve transitioned into a seller’s market in much of the country.”

“Buyer traffic is continuing to pick up, while seller traffic is holding steady,” he said. “In fact, buyer traffic is 40% above a year ago, so there is plenty of demand but insufficient inventory to improve sales more strongly.”

Homes available for sale at the end of January fell 4.9% to 1.74 million previously owned homes, a 4.2-month supply at the current sales pace, down from 4.5 months in December, and the lowest supply since April 2005, when it was also 4.2 months, the NAR said.

The inventory is 25.3% below a year ago, when there was a 6.2-month supply. The number of homes available for sale is at the lowest level since December 1999, when there were 1.71 million homes on the market, the Realtors said.

“We expect a seasonal rise of inventory this spring, but it may be insufficient to avoid more frequent incidences of multiple bidding and faster-than-normal price growth,” Yun said.

Sales rose in every region but the West.

Overall, sales of single-family homes, condos and townhouses were up 0.4% from December, at a seasonally adjusted annual rate of 4.92 million. That was up from a downwardly revised 4.90 million in December, and 9.1% above the 4.51 million-unit pace in January 2012.

Distressed homes — foreclosures and short sales — accounted for 23% of January sales, down from 24% in December and 35% in January 2012.

The median time on market for all homes was 71 days in January, down from 73 days in December and 28.3% below 99 days in January 2012.