Blog
Trends Continue
Written by Leslie Kopp Wednesday, March 03, 2010
TRENDS CONTINUEFebruary saw the trends in January continue. Single family homes under contract are below a year earlier which is not a particularly good comparison. On the other hand, the townhome/condo market was much stronger, up 73% from 2009. Increasing activity among the lower price points are a sign of a recovering market. The higher number of single family over a million under contract this year (3 vs. 1) is not enough to suggest a change in that market as of yet.
Nevertheless, as noted last month, inquiries remain as strong as I have seen in years. Scheduled showings are up although many have been cancelled as a result of the weather. These showings will still take place when things improve and their impact should surface in March or April. I remain optimistic for 2010.
On a less positive note, we may be experiencing some issues with appraisals, as is true with most real estate markets around the country. Appraisers have few comps to go by and changes in lender criteria make them understandably cautious today. I am spending more time now pointing out the differences in property and location. Fortunately, the experienced appraisers are willing to listen but buyers can still expect higher down-payments than they have in the past.
Overall, with a market reaching price stability, superb inventory, and low interest rates, I believe we will look back on 2010 as a year when there was no better time to be a buyer. Certainly, I cannot remember a time when I was so impressed by the quality, breadth, and price of my listings, both current and those on the way. Look through them and you will see what I mean.
INQUIRIES STRONG
Written by Leslie Kopp Thursday, February 04, 2010
INQUIRIES STRONGThrough January 27, there were only three single-family homes under contract in the Bethany/Fenwick area compared to five a year earlier. On the other hand, twelve condo/townhomes were under contract compared to only five in 2009. This continues last year's trends, a weaker single-family market but good growth at the lesser price points.
That said, recent inquiries are strong on both fronts. And the quality of those inquiries is excellent as well. In fact, for January, inquiries and showings are as strong as I have seen them in many years.
Price is still important. Nevertheless, even though some properties remain over-priced, I would be surprised if we see many further reductions off price points where sales are taking place today. In other words, we are reaching price stability. An exception might be in areas where few sales have actually taken place during this downturn. In those cases, prices may have more room to drop.
Storm of November 2009
Written by Leslie Kopp Friday, November 13, 2009
We wanted to share pictures of the nor'easter hitting the Delaware beaches. Please note these photos were not taken at high tide which is expected around 5 pm. We will share more with you in the upcoming days as the weather improves.
If you are planning a trip into town, check the www.deldot.gov website for road closures. The Indian River bridge is currently closed.
WINDING DOWN
Written by Leslie Kopp Wednesday, October 14, 2009
The Fall selling season is winding down. I’ll report the numbers in a few weeks. What is clear, however, is that recent price reductions make right now an outstanding time to buy at the beach. Price comparisons to past years in some locations are approaching 2003 and may even be lower. I will be researching this shortly and make it a topic for a future communication.Further, we are finally seeing some easing in the jumbo loan market. Rates have dropped somewhat and loan terms also show some easing. Competition among banks is finally coming back.
In short, this may be the point in the cycle at which buyers happily look back on their ‘buy’ decision, or wish they had!!
Some Improvement
Written by Leslie Kopp Wednesday, September 02, 2009
Year-on year sales comparisons continued to show some improvement in July and August. Twenty-two single family homes went under contract in the two months this year compared to only sixteen a year earlier, an increase of 38%. Total dollar value, however, rose only 27% which is probably reflective of the continued price weakness we have seen for some time. The average sale price dropped 7% to 1.3 million.The improvement, however, is not likely to have any positive effect on pricing at the moment. New properties coming on the market this year were up close to 50%, more than offsetting the increase in new contracts.
Activity remains generally positive and I am still somewhat encouraged about our fall market. The good news is that potential buyers are making offers. Of some concern is that many of these offers are extremely low, on already reduced prices. While we have seen some sellers this summer that needed to sell and willing to accept low offers, they were in the minority.
Leslie
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