Real Estate Market Showing Signs of Life

In the wake of Memorial Day Weekend, the official start of the summer season here, the real estate market is continuing to show signs of life.

However, the increase in shopping activity coincides with yet another jump in interest rates. Last week the interest rate for a 30 year fixed product was 4.82%, the average rate is now 4.91%. A year ago the rates were in the 6% range. However, rates appear to be on an upward climb. I reported a few weeks ago that rates had increased from historic lows. 

There is still the anticipation of more foreclosures and short sales as the jobless rate increases and more adjustable mortgages come due. These factors may keep rates low but there is no indicator they will. An increase in rates may slow down the excitement that’s hovering over the buying market and will definitely adversely impact the busy refi business. 

On a recent trip off cape to the north shore of Boston, realtors told me that many buyers are acting and the combination of low prices and rates have fueled a mini boom. This is good news for the cape market.

The current market is a rollercoaster ride with interest rates, but they are still historically low. Banks on Cape Cod are offering 30 year fixed rate loans at 4.8% to 5%.

Most listed property right now in Provincetown is priced at levels we saw roughly 6 years ago.

This past week one property sold in Provincetown bringing the number of year to date closed transactions to 26. 

Last year, Provincetown had 77 closed transactions during this same period.

There is electricity in the air as many buyers are scratching their heads, wondering, is this the right time? We’ll see how an increase in rates affects this momentum.