Gold Rush or Ghost Town?

Happy Carnival Week for those of us in Provincetown. The theme of Wild, Wild West this year is so fitting as a description of the real estate market.

Are we on the eve of a gold rush for the purchase of foreclosed properties? Will there be a ghost town of empty homes fueled by distraught sellers who lowered their prices to virtual giveaways?

Most likely we won’t see this in Provincetown, Truro and Wellfleet. Here’s what we’ve seen so far this year.

Sellers who have a large equity stake or those who need to sell have priced their properties in line with what the market is doing. This alone presents opportunity for those buyers waiting for the right time. There has been talk of more adjustment over the next year, but even so, the time to buy is now. On the average, Provincetown, Truro and Wellfleet have experienced a 10% adjustment in the market.

Sellers who have been unrealistic took their homes off the market or left their listings active for vanity’s sake, hoping that a magical and perhaps naïve buyer will come along.

Here’s what’s bring buyers this year. Besides the low prices, when mortgage interest rates adjust down, a flurry of buyers rush to town and take advantage of the low priced homes and condos. They buy creating a hiccup of activity.

When rates go up, the activity seems to stop. This time presents cash buyers who use their strong buying power to make a dream of owning on the cape a reality. A cash buyer is now worth his or her weight in gold. 

One thing is for sure. The remainder of 2008 will be an interesting time to see how the market performs.

Happy Carnival. Have fun. Enjoy the festivities.