The State of the Cape

Having just spent a week on Cape Cod, it seemed fairly apparent that the reports of the housing busts effects on the vacation spot were not exaggerated.

It had been noted earlier this summer that home sales on Cape Cod were off some 20.1% year to date and a whopping 30.7% in July as compared to July of 2005.

Additionally, inventories have been steadily rising and currently stand at over a 10 month supply with homes spending an average of 120 “days on market”.

The result is that sellers, although still holding firm to their prices, are facing an increasingly deteriorating market that’s getting worse by the day.

It had been reported recently that prices in the Cape Cod rental market, even the seasonal rental market, have been coming down as home sellers resort to renting to bide their time.

By the way, the collage of home sale lawn signs above were taken while driving a short stretch of Orleans. Left out of the picture were the equally numerous new construction “contractor” signs which in many cases were the builders attempt to sell direct to the buyer.