Ryan Haley, Broker and Owner of Atlantic Shores Sotheby’s International Realty, provides an update on the current real estate market in Worcester County, the Delaware Beaches, and the country as a whole.
Real estate, in general, has been one of the industries that fared well during the COVID-19 months, and this trend is expected to continue in Ocean City, Worcester County, and the Delaware Beaches.
Worcester County, which covers Ocean City, Ocean Pines, Berlin, and Bishopville, continues to see a trend of low inventory and strong demand.
In September, new listings increased by 27.4% over 2019 as 344 new listings came into the market. This is good news as more listings are hitting the market, but new listings are being overtaken by Pending (Under Contract) transactions, with 354 properties going under contract in September, which is a 63.1% increase over last year.
Closed Sales in September were at 324, representing an increase of 42.1% from September 2019. It brings the year-to-date total to 2,161 properties sold which is a 15% increase from last year.
With low inventory and strong demand, prices are expected to rise.
The current median price in Worcester County is at 294,250, up by 11.9% over the previous year.
The Delaware market is also seeing pending sales outpacing new listings, with pending sales increasing 57% over last year, while new listings are up 35% from the previous year. Closed sales in September rose by 48% compared to last year, while year-to-date sales jumped by 16.8% over the same period in 2019.
Prices in Delaware are up by 19.1%, with median sales price pegged at $339,500, compared to last year’s median price of $285,000.
While there is a lack of inventory in the resale market, there is also a lack of new homes. This has been foreseen, and builders were slow to adapt.
The good news is that builder confidence is now at its highest level ever as they see demand for new homes to be high.
Inventory level in the national market continues to decline, which means that price appreciation will also continue.
Mark Fleming, chief economist at First American believes that rapid house price appreciation will persist until the supply-and-demand imbalance begins to improve.
Experts also believe that home price appreciation is in for dramatic increases in the coming 12 months.
Should you have any questions about the market, it will be our pleasure to assist and answer your questions.