Debeachblog’s Weblog

The Good
In spite of the tough market conditions in the Sussex County area (and across the country), the Lee Ann Wilkinson Group closed over $39 million in sales for the first six months of 2008. I continue to be ranked the number #1 agent in Sussex County in total sales. My closest competitor (who happens to be in Bethany Beach) came in at $28 million. So despite the downturn in the real estate market we still continue to sell lots of property. This success is not accidental – we are committed to delivering superior service to our buyers and sellers, and we have the experience and the team to achieve our objectives.

The So-So
Homes are selling… if they are priced right. Sellers need to be realistic about pricing because inventory is high (and will continue to increase, according to market predictors). If you own a property that has been on the market longer than 30 days and you have not received an offer, it’s time to reduce the price. The window for summer sales is still open, but if you don’t sell your house by October, you may be looking at next spring before you do. Don’t miss the selling season by not reducing the price on your property.

The Bad
It’s harder to get a loan these days for borrowers, who, for the most part, now must put more money down, document their income and assets, and show that they can afford the payments. Those tightened lending restrictions eliminate potential buyers from the market, reducing demand.

Single Family Homes in Sussex County, Delaware

Current Listings (as of 7/21/2008)
Total Number (Current Inventory) = 3,337
Average Listing Price = $510,592
Average Days on Market = 229

Condos and Townhomes in Sussex County Delaware

Current Listings (as of 7/21/2008)
Total Number (Current Inventory) = 1,356
Average Listing Price = $396,816
Average Days on Market = 277

Lots and Land in Sussex County Delaware

Current Listings (as of 7/21/2008)
Total Number (Current Inventory) = 2,622
Average Listing Price = $166,225
Average Days on Market = 526

The Ugly
The concern based on the above data is the familiar “supply and demand” dilemma. The drop in transactions will eventually increase inventory (as it already seems to be doing). As inventory increases,
the days on market will increase as supply starts to outweigh demand. This trend will eventually lead to pricing pressure that will cause property values to drop. As it is impossible to time the market,
most buyers and sellers with valid reasons to purchase or sell should continue to do so, since they are usually benefiting from one side of the transaction. But for those sellers considering holding onto their property for another year and becoming temporary landlords, renting instead of selling their property - the wait for tenants may be a while. There are more and more sellers with the same plan as yours due to the increased inventory on the market. If you decide to go this route, however, Prudential Gallo’s rental department can assist you with a great team who knows the rental market well. 

Feel free to contact me with any questions about the Lewes Delaware real estate market…and the surrounding areas of Rehoboth, Dewey, Milton, & Millsboro. My team is here for you seven days a week.

-Lee Ann