A recent article in the Wall Street Journal entitled "New Realtors Pile Into Hot Housing Market. Most Find it Tough Going", reported what every real estate agent in the country already knows. There are currently more Realtors than there are houses to sell, but it isn't stopping people from getting their sales license and trying.
The National Association of Realtors reports there are currently 1.45 million agents in the U.S., and 1.04 million homes on the market. That's 1.4 homes for every agent hoping to sell it. Most homes involve a buyer's agent and a listing agent, so technically there should almost be room for all. But it doesn't leave a lot of sales per agent.
And the situation on Cape Cod? It's worse. Way worse. Buyers have shed a trail of tears all over the Cape, finding the home they wanted already under contract to someone else, or outbid by a mile in an escalating war among buyers for the critically few listings available.
As of today, there are 2,561 licensed real estate agents on Cape Cod, according to the Cape Cod and Islands Association of Realtors. We're all going after the same 451 homes and condominiums listed for sale. That's 5.8 real estate agents for every property.
?Of course, if you're a buyer or a seller, you sense this already. Open Houses are often a hybrid of both "open", but also requiring an appointment with the listing agent. It makes for chaos in the house when we're all still trying to keep a physical distance from one another.
What will break the logjam? More sellers choosing to cash out and sell. But they have nowhere to go either. They face the same tight supply. The key will be for someone who doesn't need another place on the Cape to let their home go. That's a tough sell as the weather warms and we all look forward to the season of beaches and ice cream cones and Cape Cod Baseball League.
If you're a buyer, hang in there. It's a frustrating market for sure. But someone has to get the next home that hits the market, I say why not let it be you? You'll want to keep in mind, the list price is just a start. Homes are going for above asking price this year. There aren't many bargains anymore.
And if you're a seller, it would be my pleasure to do a comparative market analysis of your home so you can get an idea of the value.
Sales on the Cape are up 26 percent so far this year, new listings have plunged by 46 percent. That's causing a spike in pricing--up a whopping 30 percent Capewide, year to date.
Perhaps this will be the year you buy in or cash out too.