Ryan Haley, broker and owner of Atlantic Shores Sotheby’s International Realty, provides a recap of the market in 2020 and what we are seeing so far in 2021.
Ocean City 2020 Market Recap
The year 2020 started off strong during the months of January, February, and March, only to come to a complete stop in the second half of March.
The next few months saw a bit more activity, then June through December were all record months, making up for the months when there were hardly any sales.
Total closed sales in 2020, specifically in Ocean City, were up 33.2% over 2019, with 2,025 properties selling on the island in 2020.
Actual Home Value
What do the figures mean in actual home value?
In terms of sales price, the year-to-date median (YTD) in Ocean City at the end of December 2020 was $289,900, an increase of 8.5% over the YTD median of $267,000 in 2019.
Ocean City Market Inventory
When it comes to inventory, or the number of homes in any location currently for sale, Ocean City, currently, has 191 properties for sale and 275 pending properties.
In the last 30 days, we successfully sold 145 properties. This means that we only have just over a month of supply in Ocean City.
Of the 191 active properties that are active, there are those that are not really going to sell due maybe to some condition issue or a showing issue, or there could be a tenant in there that makes it hard to show to buyers. Most likely, the issue is in pricing not being in line with the market price. However, properties that show well and priced in line with the market are going to sell fast.
The average number of days on market is just over 40 days for Ocean City. This number is high because of the properties that are not selling. Otherwise, the homes that show well and are priced right sell in an average of days.
Ocean Pines Market
The inventory situation in Ocean Pines is even more magnified.
There are currently 16 properties for sale in Ocean Pines, which has 14,000 year-round residents, so we can say that inventory is significantly low. There are currently 66 properties pending sale in Ocean Pines and 31 properties were sold in the last 30 days.
Overall, Ocean Pines only has a 15-day supply.
How to Win in This Market
The silver lining is that if you are going to buy, interest rates are the lowest ever. Many people are looking to buy, so it is also the best time to sell.
Potential buyers are looking for properties mostly for their lifestyle. Due to the COVID shift, people do not want to spend another summer confined inside their homes, and many are eyeing the Ocean City beach market as a better alternative.
For buyers: Interest rates are below 3%, so it is a great time to secure a loan and purchase a property.
For sellers: We need the inventory. If you have been thinking of selling, you may want to do it now. The opportunity is there to sell your property quickly and sell at a significant gain over what you paid for the property.
If you have any questions about the market, please feel free to reach out to us at 410.524.0919.