Cape Cod Housing Market Article

All we hear on the news is how bad the housing market is; they use the term “crisis.” But how is it locally, here on Cape Cod?

According to Jack Nicoletti, owner of Ridge Realty, the market is still struggling. Approximately 100 single-family homes in Sandwich were sold in the first six months of 2008. At the end of June there were about 290 single-family homes on the market in Sandwich. At that rate it would take about a year and a half to sell the entire inventory currently available.

That is a slow market. Average time for a home to be on the market is currently six to seven months. Because of all the houses available, buyers are in control. Jack says that the current market is “all about price” and he believes that prices are still coming down. Sellers are desperate and he sees dozens of price reductions every day.

Also the local housing market is affected by the mortgage crisis because foreclosures flood the market and bring down values. Bank-owned properties used as comps for an appraisal have lower listing and sales prices and will affect the appraised value of your home. Because Cape Cod is an area determined to be a “declining market,” lenders are reducing the appraised values by an additional 5 percent. The low interest rates are not really helping the market because tighter lending standards have made it tougher for buyers to qualify for mortgages. The newly released report on the State of Nations Housing 2008 by the Joint Center for Housing Studies of Harvard University stated: “In the case of a mild downturn, which most economists expect, the fundamentals of demand are likely to drive a strong rebound in housing once prices bottom out and the economy begins to recover.” When that will happen is anyone’s guess.

Whether the housing market is good or bad there are always things you can do to improve the appeal of your home to buyers. You have to think of your house as a product and look at it with an objective eye. The outside of your home should be welcoming and impeccably maintained. Your home must have curb appeal so it will stand out from the rest and draw the buyers inside. Keep the lawn mowed, shrubs trimmed and leaves raked. Make sure the entrance is free of clutter and the front door is clean or freshly painted. Experts estimate that buyers make up their minds about a house in the first 10 seconds. The most important three things that you can do to create a good first impression are removing personal items, de-clutter, and clean, clean, clean.

It is important to remove personal items so potential buyers can see themselves in the house. Remove any family photos, trophies, or children’s artwork and store them away. The next step is to de-clutter. Pack up half of the books in your house and most of the knick-knacks. Although you may have worked hard decorating your home, potential buyers aren’t interested in your taste and style. They want a neutral space that their style can fit into easily. The third and possibly most important recommendation is to clean, clean, clean. It is especially important that kitchens and bathrooms sparkle. Counters should be clear of appliances and food to maximize the appearance of workspace. Refrigerators should be free of magnets, notes and photos.

If you have done your best to make your home appealing to buyers and it still isn’t selling, it may be time to call in a professional home stager. A home stager will make improvements to your home to make it a more appealing and attractive product for sale. Home staging has been popular on the West Coast for years and is now becoming more common in the Northeast. Home stagers often work with realtors and have a good knowledge of what buyers are looking for. They look at your home as a product and can see problems that you can’t. A home stager will take an objective look at your home and create a list of recommendations.

Madeleine Bickert, the owner of Décor Rx in Brewster, has been staging homes for almost three years now and this has been her busiest year yet. During these trying times staging can really give your home an edge in the market. Madeleine comes up with her recommendations and then works with her clients to see what improvements they want to make. She then shows them samples of colors and fabrics and pictures of furniture and works with them to choose the best options.

For major work like painting and flooring Madeleine works with contractors and gets three estimates to compare. Because of her work in home staging she has good contacts in the industry and uses quality contractors. In addition to depersonalizing, decluttering, and cleaning, Madeleine thinks it’s important to use neutral colors on the walls and floors to create a home that appears spacious and bright. She often recommends removing blinds and curtains from windows to allow the maximum light to shine in. Madeleine sometimes recommends that large furniture pieces such as a china cabinet or oversized recliner be removed to make rooms seem bigger.

With the increased use of the Internet for viewing home listings, Madeleine works with realtors to get the best photos for their Web sites. Some reports show that professionally staged homes can reduce the listing time on the market by half and often fetch 10 to 15 percent more than an empty or unstaged home. In a housing market where there are many homes sitting on the market having your home professionally staged can be the edge you need.