What's Selling in Lewes?

How do I know what's selling? 1) I represent the seller for many, many properties in Sussex County, probably more than any other realtor. 2) I work for one of the top ranked Real Estate agencies (Prudential Gallo) in the area. 3) Half the people I'm related to are in the real estate business (both my parents, my sister, and my brother in law all work with me). And…we enjoy talking to each other about the real estate business whether we’re sitting at the dinner table or on Hudson Field cheering on my grandson’s baseball team. I am happy to discuss real estate with anyone at any time, because, well, real estate is one of the few topics I can safely say I'm an expert on ;-). Anyhow, from the feedback I've gotten from others and also from my own experience, I'd say market activity is very high but sales numbers are not reflecting this activity. This means that a lot of people are shopping, but not a lot of them are actually taking out their wallets. Tire-kickers, fence-sitters, foot-draggers, window-shoppers, whirling dervishes...we have a lot of names for them but the end result is that buyers are moving very very slowly. Yes, there was a recent upswing in sales due to the Tax Incentive, but the jump wasn't nearly as high this time as with the original credit that expired in November and seems to have more to do with new construction incentives than anything else. The tax credit incentive seems to have lost some of its punch. Possibly buyers assumed that congress would rubberstamp a renewal of the program or else that $8,000 credit just didn't mean enough to them. Taking a look at the market for the past 4 months, I can tell you what is selling and what is not and where you might shop for bargains…. 1) New Construction According to the MLS database sales records, the two most popular neighborhoods in Lewes are Harts Landing and Bay Crossing. In the last four months Harts Landing (Pulte) had eight "closed" sales and Bay Crossing (Blenheim) had five. FYI - Closed sales refers to sales that have gone to settlement. The sales in these two communities were almost all new construction. What do these two communities have in common? First, they both offer homes in the $300-$500K range. This makes them attractive to a wide variety of buyers - people looking for second homes, retirement homes or weekend retreats are all potential clients. Second, they are both in central locations. Harts Landing is located a few miles west of Route 1, off Route 24. Bay Crossing is located just east of Route 1 on Bay Crossing Blvd (about 1/4 mile North of the Midway Shopping Center). Third - They are both amenity rich communities. Harts Landing offers tennis, pool, fishing pier, and bike trails. Bay Crossing is a 55 Plus maintenance-free community offering tennis, pool, fitness center, clubhouse, lawncare and even snow removal. Fourth - Their builders are offering great incentives. Actually, most new home builders are offering great incentives these days. That is why new construction accounts for about 30% of all home sales in Lewes this period (Jan-April 2010). Other communities in Lewes where more than one home has sold in the last four months are all East of Route 1 or else very close to it including Rolling Meadows, Love Creek, Pilot Town Village, Edgewater, and the Reserve at Pilottown (each had three closed sales during this period). Homes in Sandy Brae and Village of Five Points each had 2 closed sales. These are all great neighborhoods and conveniently located. The Lewes Historic District is rarely hurting for sales even though homes here tend to be in the higher $600-1M range. This period there were four closed sales. What Else is selling? Lots and Land. Quite a few lots have been sold in the last six months in Lewes in the Reserve at Pilottown and Hawkseye. There are still good lots available in these communities and they have both experienced even further price cuts in the last couple of months (more like a price "shave" as the lot prices were already drastically cut a year or so ago in both these communities) and now range from the low $100s to the high $200s. You can actually theoretically build your dream home in either of these communities for under $500,000 - an unlikely possibility in 2007. When I posted a couple months ago about the fire-sale prices on lots inside city limits, they were already being snapped up by homebuilders and speculators. Today you can walk down to Burton and Johnson Avenues and see the result of these sales - some very nice new houses listed for sale, some are already completed. All reflect fact that the builders were able to buy those lots at a discounted price. What's not selling in Lewes? Homes outside of a developed community (unless they are in-town or on the beach) are sometimes harder to sell, and therefore you may find a bargain. If you don't miss amenities and like not being told by your Homeowner's Association what you can or can't build in your backyard, park in your driveway, or add to your house, this is a good place to look. Fixer-Uppers are also harder to sell in this market (unless they are labeled "short sale", "estate sale" or "foreclosure" in which case they are heavily toured) so you will find bargains there. Condos - Condos sales are still flat, particularly in smaller or older communities where they are weak on amenities or the buildings are starting to show their age. Condo prices are now down to about what they were in 2004 or 2005 in many communities. Interesting Note: I update my mailing list from the tax records regularly and I have recently seen an increase in multiple properties in the Five Points Condominums being purchased by the same entity, usually with out of town addresses. Investors are moving in to pick up these condos because they are in a newer community surrounded by amenities, easily rented, and at are still at bargain basement prices. Next week's blog: What's Selling in Rehoboth?