It’s now 2017 and we are looking forward to great things to come. As always we look at the New Year with much optimism. In the past ten years the Real Estate Market here at the Delaware Beaches has had its ups and downs. So what does the future hold? So many things are changing in the world it’s hard to tell. However the latest data seems to indicate that we are on an upward trend as far as median home pricing goes. This is a welcome trend for everyone who invested during the height of the market as well as anyone who has invested in the Bethany Beach area in the last 5 years and anyone looking to invest now.
In analyzing our housing market we limited our search to the cities that make up the south eastern most area in Delaware. Generally from the Indian River Inlet Bridge to the North, The Delaware/Maryland Border to the South, The Atlantic Ocean to the East and a few miles inland to the west. These included the cities of Bethany Beach, Clarksville, Fenwick Island, Millville, Ocean View, Selbyville and South Bethany. Basically what we like to call here the Quiet Resorts.
Ten years ago we were looking at some of the highest median home prices ever. We topped out in March of 2007 with the median home price of $482,794.00. Then the housing bubble burst and we saw a steady decline for the next 5 years. In January of 2012 we hit bottom. The median price for homes fell to a 10 year low of $230,000.00. That’s a 52% decline from the high! OUCH! However since the bottom out in 2012 we have seen a trend of significant gains. The latest data from December of 2016 shows us sitting at a median home sale price of $370,000.00. That is a 37% increase in the 5 years since the bottom. We are still not back to 2007 numbers. We are down about 23% since the highest of the highs, but things are looking up.
The five years since the bottom out things have slowly crept back up. That’s a great sign as huge jumps in the Median price cannot be sustained. It’s impossible to predict what the future will bring but it is a great thing to see that our local Bethany Beach area Real estate market is appreciating at a slow and steady rate.
So what does the future hold for the Bethany Beach Real Estate market? If I only had a crystal ball! However looking at the data for housing inventory shows we are on quite a decline going into 2017. Things remained steady for half of the year. From January to June there was an average home inventory of around 950. In June we peaked out at 1016 homes for sale. Then after June we have seen a steady decline. By the end of the year we have dipped down to only 771 homes available for sale. That’s almost a 25% decline in inventory in the last 6 months.
This is an interesting trend especially if you look at inventory over the last 10 years. Generally speaking the Bethany Beach area housing market has trended around 1000 homes available for sale. We hit a peak in 2007 with 1318 homes available in inventory and by the end of 2016 we are at 771. In the past ten years we have never had this few homes available in any one month!
Another interesting trend to look at is the last quarter of 2016. In the last few months the amount of new inventory to the market has made a significant decline. As the amount of inventory has shrunk the average days to sell has also seen a large decline as well. What does this all mean? Well we are facing shrinking inventory as homes sell, a decline in new inventory to the market, and a decline in the days on the market. The shrinking inventory is creating a supply shortage and a decline in days on the market is indicative of increased demand. If all other things remain constant the laws of supply and demand will show that this scenario will lead to an increase in Median Home prices.
So for 2017 are you a seller? You are definitely in a good position as inventories are low, prices are on the rise, and the days on the market are on a decline. If you have been considering selling your Bethany Beach home give us a call and we can explain, in detail, our unique ways of marketing your home to take advantage of today’s market trends.
In 2017 are you a buyer? Things are looking good for you too. Although you aren’t getting homes at the prices of January 2012 you are still getting into an appreciating market with values below the 10 year high in 2007. In addition to buying into an appreciating market interest rates are still at historically lows. If you have been on the fence about buying your Bethany Beach home give us a call and let us help you find your dream home. We will help you navigate your way from viewing to closing. We are here to help! Thanks for the read and have a healthy and prosperous new year!