On the Eve of Foreclosures?

Q: "Are we on the eve of an abundance of foreclosed properties on the Outer Cape?"

A: Most likely we won’t see this in Provincetown, Truro and Wellfleet. Here’s what we’ve seen so far this year.

Sellers who have a large equity stake or those who need to sell, have priced their properties in line with what the market is doing. This alone presents opportunity for those buyers waiting for the right time. There has been talk of more adjustment over the next year, but even so, the time to buy is now. On the average, Provincetown, Truro and Wellfleet have experienced a 10% adjustment in the market.

Most sellers who had been aggressive with their pricing and wanted to stick to a certain bottom line, took their homes off the market. They are waiting for the turnaround.

The factors that produce buyers this year are pretty straightforward. Besides the low prices, when mortgage interest rates adjust down, a flurry of buyers rush to town and take advantage of the low priced homes and condos. They buy creating a hiccup of activity.

When rates go up, the activity seems to stop. When this happens, cash buyers have strong negotiating leverage and use their buying power to make the dream of owning on the cape a reality. A cash buyer is now worth his or her weight in gold. 

One thing is for sure. The remainder of 2008 will be an interesting time to see how the market performs.

In regards to the question: we have seen very few foreclosures and may see some more, however, the outer cape will most likely not see an over abundance of foreclosures.