Our hearts go out to anyone who has been impacted by Coronavirus, COVID-19, whether directly or indirectly. Conditions are continuously changing and the long-term impact on the economy and the real estate market is not yet known. We will do our best to summarize what we are experiencing at the beach, as of today, March 17th.
Since March 1, 2020, 28 properties have gone under contract in the Bethany-Fenwick area. This is up 100% compared to 14 during the same time in 2019. This past weekend, our listings had a combined 25 showing appointments which is down 29% from the 35 during the second weekend of March in 2019. Understandably, a few clients have pulled back due to the uncertainty in the market. In most situations, we feel this is temporary, but only time will tell.
Beach real estate remains a solid investment with proven appreciation over time. Historically, we’ve seen values increase nearly 5% per year nationwide and there is no exception to this at the beach. In times of stock market volatility, consumers will often flee from equities and put their money into real estate as they know it’s an asset with multiple lines of revenue-appreciation, tax advantages and potential cash flow. Additionally, mortgage rates are now at an all-time low which is almost 1% point less than this time in 2019.
*Data was derived from the Sussex County MLS. Includes properties in North Bethany, Bethany Beach, South Bethany and Fenwick Island. It may not reflect all activity in the marketplace.