Cape Update on Possible Market Turn Around

This week The Boston Globe reported that there could be a potential turn around for the real estate market in the near future. This news comes after the amount of closed real estate transactions have increased in the Boston area.

How does this translate to Provincetown and the Outer Cape? It is too early to tell. The rate increase last week prompted some buyers to react by contacting their realtors in order to find a deal before rates increased even more. Up until the rate hikes, the media doom and gloom kept many buyers inactive as they waited for prices and rates to drop further. Last week, the combination of the rate increase and 15-20% adverse adjustment in property values, created the perception that this could be the start of the turn-around. Buyers afraid that they missed the bottom acted quickly and an increase in shopping activity was the result.

The media was quick to respond to news reports that this could be the turnaround with stories of another batch of adjustable mortgages coming due. This in addition to more layoffs will increase the historically high unemployment rate. The resulting foreclosures will create another reduction in interest rates. Mortgage brokers reported this week that there has been a decrease in refinance business after last week’s rates increase and news that additional restrictions will be placed on condominium purchases has cast a dark cloud over certain demographics.

It seems the housing market can’t win in the media’s eyes. The one certain factor is that rates are incredibly low and most property in Provincetown right now is priced to present opportunity that we have not seen in about six years.