Dewey Market Watch 11/10/22 thru 12/15/22

Happy holidays to everyone!!!

     You would think that the market has slowed especially with the higher interest rates but that’s not the case. There were four condo sales in the 1st week of December and that’s good for anytime of the year:) The new single family listing (2 homes on one lot) on Saulsbury street increased the inventory for single family homes to four active listings, three being fee simple and one on leased land. The only condo for sale is my listing at 23 Collins unit 2 D. Based on showing activity, I don’t think that it will last very long. There’s two Surf Club (quarterly fractional shares) units on the market and that’s it for the entire Dewey inventory. There’s a single family (commercial) home in Ann Acres and one single family in Poynters Addition for sale. There is no activity in Dodds Addition, Killens Addition and Silver Lake Manor. There’s no listings for single family homes in the Chancellery and Indian Beach. The only land for sale is a lot in Indian Beach and the commercial lot just north of Dewey on Ocean Hwy and Old Bay Rd. 

     The interest rates have actually come down a bit since my last update. The feds raised the rate yesterday but it didn’t impact the mortgage interest rates. The rate for a 30 year fixed is about 6.5%, yes of course with a point:) The ARMs are running about 5.6250% for a five year ARM, 5.8250% for a seven year ARM and 6.1250% for a ten year ARM. They’re still not the best but much better than what they were just a few weeks ago. There’s absolutely bare bones for an inventory. It would be a great time to list at the beginning of the new year. Please feel free to call me for a free no pressure market analysis to determine the value of today’s ever changing market’

I’d like to thank all of my clients this year and all of my previous years for a very successful 2022 season. I value our friendships developed over the years and thank every one of you:) Have a safe and joyous holiday season See you in 2023!!!

There was a rare Seastrand listing that was listed, pending and closed all within the day. The asking price was $1,295,000 and it closed for $1,225,000. I believe that the tax records weren’t updated. I believe this building was built in 1995 after the original building burned down.

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Dewey Market Watch 9/28/22 thru 11/9/22

      Happy Veterans Day!  Thank you for your service and sacrifices that allow us all to enjoy the freedom that we have today. All service members in all branches of the military, true American heroes. Thank you! How about this beautiful summer like weather! Temps were in the mid 70’s to 80 degrees for the last 3 days. Gorgeous! What a rapid change in the market. There’s minimal activity at the present time. Properties are still selling in the resort area but not at the pace that we’ve seen in the last couple of years. . The lack of inventory hopefully will keep the prices up. They should drop a little, how much we don’t know. ALL markets are fueled by supply and demand and demand is still present in the entire county. The Dewey and surrounding communities still have a severe lack of inventory. The town of Milton is getting ready to approve, ready for this, 15,000 new homes, proving that demand is still present. Sussex county is still hot as ever and in full demand but the interest rates aren’t helping. Present rates are as follows 30 year primary 7.250% with 1 point, a 5 year ARM is 6.50% with a point, a 7 year ARM is 7.625% with a point, a 10 year ARM is 6.750% with a point. Second home rates are 7.375% with a point. We were all used to 3% -4% even 2.50% at one point which was a record low rate. Rumors are that we will see at least 2 more rate hikes in the very near future to help ease the inflation. It’s not the end of the world! Prices will come down to help offset the higher interest rates. We are in a niche market, it’s the beach resorts. Strong rental incomes will help support the market. New construction abounds in Dewey.

     The holiday season is upon us. I hope everyone has a safe and happy Thanksgiving! 

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Dewey Market Watch 8/3/22 thru 9/27/22

     The 2022 summer season has come to an end and autumn is upon us. The market remains stable in the Dewey and surrounding communities. Properties are still selling but the madness is over. The “days on the market” is longer. Home inspections are returning and the 15+ contracts on a listing is no longer although occasionally there’s still multiple offers on an exciting property. The increasing interest rates are to blame. You might want to sit down for this! The interest on a 30 year primary home is 7 1/8%. You can pay two points to get it down to 6 1/2%. The interest on a 2nd home is 7 1/8 and two points. Jumbo rates for a primary home with a minimum of $741K borrowing amount is 7 1/2%. Jumbo rates for a 2nd home is 7.625%. That’ll slow the market but not stop it. Rental incomes have been off the charts and still are attractive to savvy investors. Surely the market is in for a change. 

     I have two new exciting listings that are very unique. The 1st listing is a three season 2bd/1ba in the ocean block of Collins. The unit has been tastefully upgraded. The seller is offering to hold the note for 4%, amortized over 30 years with a balloon in 10 years. That’s an unbelievable savings. Please click on the link below for more info! My 2nd listing is 104 Dover Rd. #2. This 4bd/2ba, 1,800 sq’ is half of a duplex. The feature of this property is that you own the land unlike the common areas usually associated with a townhome. There is no HOA or HOA fees. The flood insurance is $2,250 per year and each owner maintains their own home. Please click on the link below for more info.

     Inventory remains low for single family homes. Presently there’s only three fee simple homes and one home on leased land. There’s one single family home in Ann Acres and one in Poynters Addition. The condo inventory has increased to six active listings and there’s one quarterly fractional share in the Surf Club. That rounds out the inventory. I expect the inventory to increase in the months ahead, we’ll see!! Everyone have a safe and enjoyable autumn season:):)

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Dewey Market Watch 7/6/22 thru 8/2/22

Hello Everyone! Happy summer to all:) The summer’s going way too fast and needs to slow down a little:) The market remains slow only due to very little inventory. In the town limits of Dewey there are two condos, four single family homes, one single family on leased land and one Surf Club unit (quarterly fractional share) on the market. There’s one single family home in Ann Acres, one single family home in Poynters Addition and one lot in Indian Beach. There’s nothing available in the Forgotten Mile. You can’t sell it if you don’t have it!! There were two pending contracts for single family homes and two condo sales in the previous 3.5 weeks. Closing prices are still close to asking price. The bad news for all of us is that the prime just went up .750%. The good news is that the mortgage rates actually dropped a little. The interest rate for a 30 year fixed is hovering around 5.5% and a 30 year jumbo is approx. 4.750%. Perhaps we’ll see a few new listings once the summer comes to an end and owners have realized most of their rental incomes. Are you thinking of listing in the autumn? Call me for a free “no pressure” market analysis that will educate you on your home’s value in today’s present market. Act fast while the rates are still reasonable!!! Stay safe and enjoy the remainder of the summer!!

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Dewey Market Watch 5/16/22 thru 7/5/22

     Happy summer!!! It’s good to be back on my feet:) I missed the first six weeks of summer after catching covid on Memorial weekend. No fun but back to enjoying this gorgeous summer:) Due to my covid this market watch is for the previous seven weeks. There hasn’t been a lot of activity due to the minimal amount of listings (same old story). Values appear to be holding steady and then some. The four closings for single family homes realized one listing selling for full asking price and the three remaining closings all closed ABOVE asking price. The condo market also has three closings over the asking price and one unit sold for full price. That’s some pretty strong statistics. The interest rates have been fluctuating on a daily basis. The interest rates breached at slightly over 6% for a short time but since then have come back down to 5.375%. The market remains strong in the immediate resort areas. Rental incomes have been on the rise thus keeping investors and 2nd home buyers in the market. That’s not the case in all of the area markets. I just reviewed the 3 day holiday hot sheet. There were 28 price reductions in Sussex, something we haven’t seen in some time. 

      Please use extreme caution when driving or walking through Dewey! MANY drivers are still oblivious to the flashing yellow lights and the crosswalks. Walking? Look three times and cross with extreme caution, don’t expect everyone to stop! Patience, patience everyone. Businesses are still short staffed so everyone needs to have a little patience and be respectful to those who are working. Grab a drink or two or three and enjoy the summer and everything that Dewey has to offer:):) 

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Dewey Market Watch 4/12/22 thru 5/15/22

      We have sun!! What a nor ‘eastern! Wind gusts up to 72mph! There was a lot of beach erosion but not to worry, the summer ocean currents will bring it back naturally and all will be good! What a month in real estate. I believe that we’re at the very top of the market and things are about to change. I sold a home to my nephew in Feb. and his rate was 3.50%. The rates in May have been hovering between 5.50% up to 5.875% with rumors of up to another half dozen increases this year to help stop the inflation. Properties are still selling and our present market is still strong. What I am noticing is price reductions throughout the area, longer days on the market, contracts with contingencies and home inspections again. Speaking with Realtor friends from the north and west of our state, they realized a bit of a slow down and similar market changes about four months ago. We are a resort niche! Our market is so different than the surrounding areas because so many of our properties are bought as investments accompanied with strong rental incomes. The rising interest rates might slow our market a bit but will not stop it. I expect many owners who were sitting on the fence (to list) as prices continued to rise will hopefully list their homes and increase our inventory. I think that this will happen during the course of the year. The 11 pending contracts in a one month period is still way above pre covid statistics. Please call me if you’d like a value on your home for possible listing consideration.

      The summer season is fully upon us. Life is good, let’s keep it that way. The town of Dewey installed posts with a nice nautical rope connecting them all, this was done to reduce the possibility of an pedestrian accident. PLEASE use all of the designated crossovers and I’d suggest hitting the flashing light button before you cross. PLEASE exercise extreme caution while driving in all of our resort towns. Happy summer!!!!

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Dewey Market Watch 3/11/22 thru 4/11/22

Happy springtime!! It’s 75 glorious degrees at this typing:):) Spring has sprung!!  Dewey and the entire resort area is open and in full gear! The market continues to sizzle. In most cases agents are giving an actual date for contracts to be entertained thus allowing enough time for the general public to view the property before it’s gone by the 1st weekend from listing. Presently there’s five condos listed in Dewey. There’s 3 single family homes available in Dewey, one in Silver Lake Manor and one in Ann Acres. Also included in the inventory are four quarterly fractional share units in the Surf Club. The interest rates have been going up and down and are presently at 5% for a 30 year fixed and 4.250% for a jumbo. The rumors are that they’re going to continue to go up but we’ll have to wait and see. The 5% is actually still a very good rate:) Are you considering listing your home? I’d be more than happy to provide you a free market analysis based off of recent closing prices. Thinking of buying a home in this hostile market? Buyers must be educated and prepared to write a contract within a day or two of the listing or you’ll probably loses out. Please contact me for an education of your areas of desire. Happy spring! I think I’m shedding my shoes and going for a beach walk:):)

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Dewey Market Watch 2/12/22 thru 3/10/22

Happy Friday!! Happy spring!! Daylight savings time kicks in this weekend!! St. Patty’s is here and the 2022 season is officially kicking in:):)The lack of inventory continues to plague the market. Supply and demand dictate any market so with that being said appreciation is still occurring in the resort area. The interest rates continue to rise but are still at excellent rates at 4% for a fixed 30 year and 3.50% for a jumbo. They’re still incredible rates and shouldn’t slow our market. I’m preparing my 1st year to date comparison to last years activity for the same time period and I expect the number of transactions to be lower due to the lack of inventory. We have four new listings recently added to our inventory. Who would have ever thought that leased land properties would breach $1M in such a short period of time? 121 Cullen & 102 Jersey are two gorgeously renovated cottages that are asking $1.3M & $1.350,000. There is a 50 X 100 leased land lot that has a pending contract in two days with an asking price of $1M. The 3rd new listing is my listing at 18 West St. unit B in the Guthrie. This est. 900 sq’ unit has been remodeled with new Trane HVAC, windows, flooring, ss appliances and the list goes on and on. Click on the address below for full information. Won’t last long. The final new listing is an oceanfront unit in the Beachcomber on Swedes St. There are no oceanfront units available just about everywhere in the resorts so this unit will sell super fast. 

Spring has sprung! Get outside and enjoy the many activities that our resorts have to offer!!!

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Dewey Market Watch 1/11/22 thru 2/11/22

It’s coastal living at it’s finest! We received the 2nd winter coastal storm of the season. There was 12 inches of the fluffy white only to be gone in 3-4 days:) It was 62 degrees yesterday and in the 60’s today and tomorrow before we receive yet another 2-3 inches on Sunday. Coastal living!! There were two new listings this month. 18 Hazlett in Indian Beach is the only single family home presently being offered for sale. The 2004 5bd/5ba, 3,320 sq’ home is being offered at $2,599,900. The 2nd new listing is the old Lorraine’s hair salon just north of Dewey On Coastal & Ann St. The double commercial 1 lots borders my single family 2bd/2ba/zoned commercial 1. The three lot commercial availability offers many, many possibilities. All three lots fall under Sussex County zoning because they’re outside of Dewey town limits. There were four pending contracts in the condo market for the last month. Presently there’s only one condo for sale in Dewey, one home in Silver Lake Manor, one single family home in Dewey, one home in Indian Beach and the two properties previously mentioned. The interest rates are on the rise again. The interest rate rose to 3.825% for a 30 year fixed and a jumbo loan will now cost you 3.50%. 

      Just for the record! 119 Jersey was the house that burnt down. They just offered it for sale for $1M with a 60 year lease at $16,200 per year. It sold within a day or two as the contract was being shuffled around. It looks like we’ll have a new land value in Rehoboth By The Sea! Those of you that had automated searches set up received the new listing, those that weren’t lost out. This is the benefit of having auto searches set up for you so that you don’t miss out. Please contact me if you’d like a search set up for you:)

     The new island barriers that are presently being installed are similar to those being used in Ocean City MD that will force pedestrians to use the crosswalks. Walking and driving can be very dangerous and caution should be observed by everyone. I actually witnessed at least a half a dozen incidents where the drivers totally disregarded the big white lines at each crossover and the bright flashing lights as people are crossing over. There are some drivers that drive as if they had blinders on like a race horse. Gotta take precaution! Only five weeks until spring!! Wooo Hoooo!!!!

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Dewey Market Watch 12/10/21 thru 1/10/22

Happy New Years!!!! Life is good:) We had the pleasure of a winter coastal storm and received between 12″ to 14″ of snow. The brilliant uv rays and warm afternoon temps had it gone in a couple of days, just the way I like it! The daylight hours are increasing daily and spring is right around the corner. Market activity (1 month) has been minimal, partly due to the holidays and mostly due to minimal inventory. Interest rates have increased with the new year. The interest rate for a 30 year fixed has risen to 3.5% and a 30 year fixed jumbo loan is now 3.250%. Presently there’s only 2 single family homes available, four condos and four Surf Club units (fractional shares-1 week per month x 12). The rental inventory is also critically low or non excitant. I personally do not participate in rentals only sales but all four of our office’s do. Thinking of renting? You may be surprised at the rental incomes. Please call for a free quote. Think spring, stay healthy!!!

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