The real estate housing market can be complex and overwhelming for buyers and sellers alike. That’s why understanding the real estate market is crucial. Here at our seasoned team of real estate agents with years of experience in the industry, we can provide you with valuable insights and information on the current state of the real estate market, especially in your specific location on Cape Cod.
Several key indicators can help you make informed decisions about buying or selling a home and understand the market’s overall health. Home sales, medium prices, months of supply, interest rates, and the affordability index are some of these indicators that we can help you track over time.
If we see an annual pace of home sales somewhere between 5M and 5.5M homes, that’s the sweet spot, because homes are selling at a sustainable pace.
When looking at home price we look at the median price versus average price which eliminates any skewing of extremes on either end.
The point of market equilibrium is when there’s a six-month level of inventory. This indicates that there’s an equal pressure from both supply and demand.
A quarter of a point shift in mortgage rate—whether up or down—has an impact of about $10,000 in buying power, otherwise known as equity power.
The Affordability Index is the percentage of gross household income that’s needed to cover the principal and interest of a median-priced home.
Tracking home sales can show how active the real estate market is in a particular area on Cape Cod. Our team can provide data on the number of homes sold in a given period, which can help you gauge the competition you may face when buying or selling a home.
The median prices of homes on Cape Cod indicate how expensive or affordable the housing market is. Our team can help you track median prices over time to see if they rise or fall in your target area. This information can determine when to buy or sell a home.
Months of supply measures how long it would take to sell all the homes currently on the market if no new homes were listed. This metric can help you determine if it’s a buyer’s or seller’s market in a particular area on Cape Cod. Our team can help you track months of supply over time to see if the market is becoming more or less competitive.
Interest rates can have a significant impact on the real estate market on Cape Cod. When interest rates are low, it can make it easier for buyers to afford a home, which can drive up demand and prices. Conversely, when interest rates are high, it can make it more difficult for buyers to afford a home, leading to a decrease in demand and prices. Our team can help you stay current on interest rates and how they may impact the housing market.
The affordability index measures how affordable homes are in a particular area. It considers factors such as median income and median home price to determine how easily a typical household can afford a home in the area. Our team can provide data on the affordability index for your target area on Cape Cod and beyond to help you make informed decisions about buying or selling a home.