February 2016

Found 7 blog entries for February 2016.

Article Courtesy of Phil Davis, Gannett Publishing
2/27/16

In a unanimous vote, Fenwick Island's town council imposed a two-year moratorium on new hotel construction in the town's commercial district. The decision came with little fanfare and no public comments, but it comes at a time when housing and business development in one of Delmarva's "quiet resort towns" is dominating the discussion.

In December 2015, the council approved an expansion of the old Sands Motel, from 38 rooms to 65 rooms. That decision came with plenty of controversy and outcry from the public.

Sands Motel Fenwick Island

Purchased for $1.5 million, the idea that this new hotel would bring in more tourists angered some year-round residents who regularly pointed to nearby Ocean City. In the summer,

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Vacation Homes -The Real Estate Trend of the Decade

 

Courtesy of Jeff Baxter Mortgage Team

The real estate market has been trending upward since the recession.  No market has been heating up faster than the vacation home market.  As the baby boomers get closer to retirement age, they are moving to purchase vacations homes, many of which will become their retirement homes in the future.  According to the National Association of Realtors, 2014 was a record year for vacation home sales, eclipsing the previous record set in 2006 at the height of the real estate boom.  Vacation home sales actually soared over 50% higher from 2013. At this point, one in five sales nationally are for vacation homes.

Some advice for those about to become part of this

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Absorption rates are a good indication of future price trends. They tell us how many months of supply are on hand based on the recent pace of sales. In a residential market, more than 7 months of supply is generally considered a buyer’s market, anything less is a neutral or seller’s market (which would put upward pressure on prices). Since the second home market is a discretionary one, our area can sometimes vary.

With that in mind, we like to look at absorption rates twice a year, during the busy summer months (so June 30 th ) and at the year’s end (December 31 st ). The year-end absorption rates in Bear Trap Dunes were 22.5 months for single-family homes and 10 months for condo/townhome properties. This indicates that in most situations, we are in a

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Compliments of the Sea Colony Recreation Association on February 22, 2016

The recent storm “Jonas” cut into Delaware beaches and many communities were hit very hard – including neighboring Bethany Beach and South Bethany, as well as Dewey Beach and Rehoboth Beach.  Oceanside towns are requesting state and federal aid to restore their dune.  Locally, funding does not appear to be available for Bethany Beach, although town officials continue to explore all avenues of funding to assist in the costs of recovering from the damage. 

Sea Colony’s beach basically was spared because of our location, the work completed on the dune in the last several years, and a bit of luck!

There was a lot of cleanup necessary from broken fencing and debris that

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Absorption rates tell us how many months it will take to sell all existing inventory at the current pace of sales, if no new listings were added to the market. We like to look at absorption rates twice a year, on December 31st and again on June 30th as the trend can help indicate the direction of future prices.

With that in mind, more than 7 months of supply is generally considered a buyer’s market and anything less is considered a neutral or seller’s market (which would put upward pressure on prices).

 Sea Colony Bethany Beach Year-End Absorption Rates

The year-end absorption rate of 11 months for Sea Colony East is down from 13 months last summer and is unchanged from both of the previous 2 year’s end. The year-end absorption rate of 10 months for Sea Colony West is down from 14 months last

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The United States Tennis Association (USTA) Middle States Section recently honored Sea Colony Tennis as one of the Premier Providers for 2016, recognizing the outreach efforts made to offer USTA programs to players of all ages and skill levels in local communities. 

“This is quite an honor, and one we share with our team here at the Tennis Center, our coastal Delaware and Maryland tennis playing family and the resort homeowners who make it all possible,” said Sea Colony Tennis Director Thomas Johnston, MS, USPTA, PTR, and 2014 USTA Delaware Pro of the Year. “Growing the game and sharing the love of the game is our mission and this recognition by the USTA shows we are headed in the right direction.” 

Among the USTA programs offered or adapted for play

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As you may recall from previous messages that absorption rates tell us how many months it will take to sell all existing inventory at the current pace of sales, if no new listings were added to the market. We like to look at absorption rates twice a year, on December 31st and again on June 30th.  

While some sellers take their home off the market during the slower winter months, the trend of year-end absorption rates can help indicate the direction of future prices. In most markets, more than seven months of supply is considered a buyer’s market and anything less is considered a neutral or seller’s market (which would indicate that we could see some upward movement of prices).

Buyer's Market or Seller's Market in Bethany Beach and Fenwick Island 

As the chart illustrates, year-over-year absorption rates remained

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