In April of this year, median home prices on Cape Cod were down for the first time in 15 years, from $715,000 to $700,000. While this is only a small dip, at the same time other measures were up including days on market and overall inventory, indicating a shift in the Cape Cod real estate market.

Political and economic uncertainty are having a negative impact on buyer activity across the country, but more than anything, the cost of home ownership is slowing buyers down. Mortgage rates at or near 7%. are still a historically moderate. However, they are still the highest many have seen in their lifetime, and with the overall cost of living increasing every year, consumers are more sensitive to fluctuations.

In the Cape Cod market this is showing up as slower sales, increased inventory, and moderating prices. We are also seeing a pull back in demand for properties that need work or updating, as increased purchase and ownership costs are eating up funds that might have otherwise been spent on home improvement.

Savvy home sellers and buyers, however, will leverage mortgage rate buy-downs vs price reductions, giving buyers a far greater boost in purchase power while preserving published selling prices.Still, pricing is going to be a key factor in getting a buyer to the table. This is not the market for sellers to be testing ambitious numbers on any kind of property. That’s covid-era hubris that will be punished.

With less than three months’ inventory available, the Cape is still a seller’s market and there are still bidding wars, but they will be reserved for only the most updated properties in the best locations with the most strategic pricing.