Cape Cod real estate continues to struggle as a result of the economic turmoil brought about by the recession that began in the fall of 2008. The region in Massachusetts continues to suffer from dramatically declining home prices and home sales. However, recent weeks have shown an increase in mortgage filings, suggesting that the increase in refinancing activity may mean some improvement in the months to come. Many high-end communities offering luxury homes are especially suffering from dropping property values. However, some properties, often oceanfront homes, have maintained a steady value and sometimes even sell for more than the original selling price. Commercial real estate has also remained fairly strong in terms of median sales prices.
The Cape Cod Times has reported that Barnstable, one of the most notable communities in the Cape Cod region has suffered sharp declines in median prices totaling over $1 billion. Both residential and commercial properties in Barnstable have suffered drastic declines in value, averaging a 7.9 percent decline from the previous year. Many experts note that these large drops in property values will most likely result in a tax exemption increase for many Barnstable residents. The median property value for a home in Barnstable is not $311,150, a 6.4 percent decline from $342,600 in the previous year. However, real estate experts have also noted that the rate of foreclosures in Barnstable have also stabilized. Other neighborhoods throughout the Cape Cod region have also suffered large property value drops, sometimes as much as 12 percent.
For the region as a whole, the Cape Cod Times has reported that Cape Cod real estate prices are beginning to level off, showing smaller amounts of declines in the recent months. In August, the median sales price in Cape Cod was $295,150, a 1.6 percent decline from August 2008. The gap between this year’s and the previous year’s real estate prices is steadily decreasing. The number of home sales in Cape Cod has also decreased 7.8 percent from 490 in August of 2008 to 452 in August of 2009. However, recent months have also shown an influx in mortgage filings, marked by a 24.2 percent increase between August of this year and August of the previous year. Experts believe that the favorable low interest rates have been the main incentive for the recent increasing in refinancing activity. Many real estate experts believe that the recent increase in mortgage filings may be a sign that recovery is near.