Coastal Delaware is currently undergoing a boom in home sales, and beach homes are selling fast. Unfortunately, the increased demand has not been met with increased inventory.
Understanding the increased demand
Homes in the luxury market of the state are experiencing a drop in sales, but one exception is beach properties. Iron Valley Real Estate At The Beach is an agency that primarily works the beach areas of Sussex County Delaware.
Their team of realtors has years of experience in the real estate market of the area. The team has the following insights to share, and why this is a great time to acquire a Delaware Beach home.
It was initially thought that the pandemic would decrease buyer demand because of the uncertainty surrounding its outcome. Many were surprised, but several factors are driving Delaware beach home sales.
The lending rates are currently very attractive, and people can purchase a home with a 15-year mortgage at just under 3% interest. Many buyers want to take advantage of the favorable tax policies of the state.
Increased interest in the Delaware market comes from the surrounding highly populated areas. This does not only include people almost at retiring age but families too.
Popular Beach Neighborhoods of Delaware
Lewes, Rehoboth, and Bethany are some of the most popular beach areas where buyers are scrambling to find homes. According to Jay Lesko, owner of Iron Valley Real Estate, "The demand for homes in the popular beach neighborhoods is rising, but the number of houses on our inventory is dropping."
"Families looking for bigger spaces to comfortably accommodate their family needs for working and schooling remotely are driving the demand. The second group is people who are almost of retirement age looking for areas close to the major cities where they live."
Bethany Beach and its surrounds offer all the attractions of a quiet tourist destination. Listings for Bethany Beach homes for sale continue to drop and demand is driving the average price up. The median price change has also increased to $737,773 in February 2021 from $ 651,343 in October 2020.
Lewes is near Cape Henlopen State Park in one of the rapidly growing cities in the Cape Area. The inventory of homes for sale in Lewes has been dropping since October 2020, and prices have steadily increased in the same period with the average price of homes currently at $597,125.
Beachfront properties in Rehoboth Beach are not only popular as vacation homes, but also with people looking for an idyllic seaside setting year-round. Rehoboth Beach real estate is currently at the lowest price in quite a while, and the inventory has dropped significantly here too. In October 2020, the average home price stood at $865,033 compared to $792,372 in February 2021.
Homes most in demand
Iron Valley Real Estate At The Beach has observed some significant changes. Areas that were traditionally popular with retired buyers are now also popular with families that don't want to work from a desk stuck in a little corner somewhere. They want a designated space for their office where they can work quietly. Buyers are looking for functionality rather than having extra living areas.
Baby boomers who still have their parents with them are looking for the extra master bedroom space to accommodate their aging parents or in-laws.
Best time to buy in Delaware
Sellers usually list their homes more in April, May, and June, but demand also increases in those months. This pushes the prices up, making spring the most expensive time to buy. Homes put up for sale in winter tend to sell for less because owners usually sell because they need to move.
Currently, seasons aside, the Delaware Beach real estate property market is very much a sellers' market. As Jay Lesko puts it: "We are thrilled the property market withstood the pandemic. Currently, buyers are wary of overpriced properties; they know they can find a similar home in their budget and are prepared to look around."
After some initial uncertainty and fear of instability, Delaware beach properties proved capable of withstanding this trying time. There is something for everyone in an area that is fast becoming fashionable to live or retire in.
Buyers interested in a beach home in Rehoboth, Lewes, Bethany, or any other surrounding areas, can rely on the team at Iron Valley Real Estate At The Beach. Each person is dedicated to personalized care and the ultimate customer experience.