Cape Cod Real Estate Market 2023

Cape Cod Real Estate Market 2023

  • Kerrie Marzot
  • 07/24/23

Cape Cod is the ideal summer getaway, and the vibrant area is also a great place to settle down and make every day a beach day. Cape Cod, in Barnstable County, consists of 11 different towns: Barnstable, Bourne, Brewster, Dennis, Eastham, Orleans, Provincetown, Sandwich, Truro, Wellfleet, and Yarmouth. The hooked peninsula has a year-round population of almost 228,000 (2021), which doubles as people migrate to the area as vacationers in the summer.

With festivals, events, and local shopping opportunities galore, it’s no secret why people want to make the Cape their permanent home. We’ll review the market data and Cape Code real estate forecast for 2023 so you can have all the information you need to see if Cape living is just what the doctor ordered.

Cape Cod housing market prices, trends, and forecast for 2023

Housing market price overview

Single-family homes are the most common piece of real estate in Cape Cod, yielding a year-to-date median sale price of $695,550. Condominiums, on the other hand, are going for about $440,000, making up 15.1% of the current housing market.

Though real estate in Barnstable County is desirable, the price per square foot is much lower than in other parts of Eastern Massachusetts like Boston, coming in at $441 per square foot for a single-family home and $361 per square foot for a condominium.

Home values increasing

As we progress through 2023, home values in Cape Cod are increasing from last year. Cape Cod’s housing market primarily consists of single-family homes, which comprise 82.1% of homes currently on the market. Home values for single-family spaces are up 4.6%, and condominium sale prices have increased by 6.7%.

This value spike is lower than the increase from April 2021 to April 2022, which saw a 10.8% jump for single-family homes and a whopping 22.1% increase for condominiums. This isn’t necessarily anything to be concerned about, though. In 2022, we saw mortgage interest rates rise in conjunction with home values, and compared to the median sales price of a single-family house in 2022, we are only noticing about a $30,000 increase in price.

Cape Cod homes aren’t spending many days on the market either. Market data from May 2023 shows that single-family homes spent about 15 days on the market, while condos spent 17 days. This is likely because summer is quickly approaching, and folks would like to secure their Cape Cod home sooner than later. Homes in Massachusetts tend not to stay on the market long during the summer months, as people are looking to transition into new spaces before the beginning of the new school year.

Interest rates increasing

According to Freddie Mac, as of June 2023, a 30-year fixed mortgage rate was 6.71%, which is a 0.33% increase from last month and a 0.43% increase from the previous month. The Federal Reserve has adjusted interest rates multiple times throughout the year, creating a wave of uncertainty about the future of rates in the second part of 2023.

Though this can make anyone anxious about the progression of interest rates, experts say they expect rates to yo-yo a bit throughout the summer instead of spiking wildly. Yes, rates are the highest since March 2023, but compared to seven months ago, rates have decreased by 0.37%. Only time can tell whether this summer will catalyze reduced interest rates.

The Southeast Regional 2023 housing market

The Southeast Regional housing market saw a slight increase of 0.7% in the median price of a single-family home as of April 2023, coming in at $450,000. However, condominiums saw a sharper increase in price of 13.3%, landing at $340,000, which is about $100,000 cheaper than a Barnstable County condominium.

Condominiums aren’t as plentiful as single-family homes in this region, with only 262 new listings available in 2023 compared to 1,448 new single-family home listings. Like many other regions in the United States, inventory has been relatively low, with single-family homes experiencing an 18.9% decrease and condominiums a 29.9% year-to-date decrease.

It seems as if Cape Cod residents aren’t too willing to let go of their homes as interest rates continue to fluctuate. Cape Cod real estate is prime, and residents tend to hold onto their properties for as long as possible, so it is no surprise that inventory continues to decrease over the years.

Even with the decreasing selection of homes, odds are a Cape Cod house is out there just waiting for you to become the new owner. Having a real estate expert at your side who has unmatched skills and a track record in Barnstable County is a priceless asset that will fare you well during your home-buying journey.

Should I invest in Cape Cod real estate?

Yes, there is no better time to invest in Cape Cod real estate. The Cape Cod housing market is becoming less and less saturated as the years go on, which means the longer you wait, the harder it will be to find a property that checks all your boxes. Historical properties, beachfront homes, and access to fun local shopping make Cape Cod a wonderful place to stay, no matter the time of year. Even if you do not plan on making the residence your full-time home, you can receive a hefty ROI from renting out your property during the summer months.

Let us find your dream Cape house

Homebuying isn’t easy, but that doesn’t mean it can’t be enjoyable. When searching for your new home in Cape Cod, the experience should be fun and exciting, not daunting and worrisome. With the right real estate agent, you can fully invest in the home-buying experience, touring a selection of homes that inspire you and have you looking forward to your new life in Cape Cod.

Kerrie Marzot is a Cape Cod real estate professional with the expertise and gusto to find you a home that reflects your personality and lifestyle. She will take the time to understand your wants and requirements, and with her growing network, you’ll be able to gain access to the best Cape Cod home for you and your family. From East and West Falmouth Houses to Mashpee Real Estate, and all Cape Cod homes, Kerrie has the expertise to meet your goals with ease. Contact Kerrie today to get started!

*Header photo courtesy of Shutterstock

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