2011 Opportunities in Cape Cod Real Estate

As we wind down a hopeful but subdued 2010, the question everyone is asking is: Is the recession over? The short answer for Cape and Islands real estate is yes. For the most part. There are some lingering symptoms and uneven progress, but there are definitely opportunities for both buyers and sellers in the coming months.

For Buyers:

• Better Selection: As happens every year, a big batch of new inventory will come on the market in January. What's projected to be different this year is an improvement in the quality of those listings.
• Entry Level Bargains with Great Financing Options: If you’re not afraid to swing a hammer, keep an eye out for HomePath properties; they represent almost guaranteed sweat equity. This is a great solution for working class Cape families and investors.
• Discounted Luxury Properties: Some high-end homeowners burned through their backup money banking on a more robust recovery and are now stuck with a property they can no longer keep. Expect to see an increase in luxury properties in the short sale/foreclosure market.

For Sellers:

• Hit the Ground Running: Gone are the days of the sleepy Cape Cod winter. It may come as a surprise, but according to Google Analytics,  January is the biggest month for online searches for Cape Cod real estate, second only to July. Six weeks to shop, six weeks to close, six weeks to fix up and furnish and you're at Memorial Day. So make sure your property is ready for this market.
• Second Homeowners: Even though discretionary spending is expected to be down, second homeowners are still shopping. The Cape properties that will fare best are near popular summer attractions, have wood floors, modern kitchens, garages and ample storage. They're even more attractive with a first floor master and laundry. 
• The Price Is Right: Today's buyers are extremely savvy and will not overpay. But even in this market, if a property presents a compelling value proposition there are bidding wars, houses selling over asking price, and some very short days on market. A good agent will tell you what number you need to be at; a great one will tell you why. Make sure you understand the market.
• Cut Your Losses: We all took a beating in the recession. If you bought or refinanced during the boom (2004-2008) and have to/want to sell now, it could be years before you see that kind of value for your property again, and longer for actual appreciation. Come to terms with the loss and move on. Talk to your accountant; there may be some small consolation for your loss in the form of tax benefits.