Monday, January 20, 2014
by Audrey and Frank Serio, CRS
Every year we try to determine what the real estate market in the Bethany Beach and Fenwick Island DE resort market will look like for the upcoming year. The number of sales in 2013 where down from the 2012 and inventory was low despite the low interest rates. Hopefully 2014 will be better.
Are we any closer to recovery? Well, that is the questions everyone is asking. While we have seen slight improvement in prices the inventory is still low with homeowner’s holding to see what the market will do. We do feel the activity growing it is just not translating into sales even with the interest rates still very attractive.
According to the National Association of REALTORS® home sales are at their fastest pace since February 2007, when they hit 5.79 million, and they have remained above year-ago levels for the past 26 months. This is a national average with the resort and second home markets still lagging behind.
So, what do we believe will happen this coming year. We feel that that market will begin to pick up as the economy improves and more owners decide to sell and there are more choices for the potential buyers to buy. This should cause prices to rise and as they do more sellers will put their homes on the market. Interest rates will also more than likely rise as the economy improves.
Industry experts are saying that 2014 will be the year that the market recovers. We are hoping this is true.
Banks should have more money to lend and should begin to free up some of the lending constraints but experts are cautious about the uncertainty of new lending regulations that my go into effect in 2014.
The one question we hear over and over is, will the prices continue to go up? While parts of the country that saw a rise in prices in 2013 are starting to slowdown we are optimistic that in the Delaware resorts areas we will start to see some momentum in prices. This too could bring more opportunity to home sellers.
With the lack of inventory we are seeing more multiple offers and this may continue through 2014. Buyers need to be well informed and able to make quick decisions due to the competition with other buyers.
To wrap it up, we expect 2014 to become more of a balanced market as more sellers enter the market, interest rates will still be affordable for the buyers and the economy slowing grows.
If you would like more information on what is for sale in the Bethany Beach or Fenwick Island communities please feel free to visit our website where all the active listings are available to you 24/7 just click here.
To be updated as soon as new listings come on the market please click here for the free automated service.
Thank you and here’s to a great 2014!
Audrey & Frank Serio, CRS
REMAX By The Sea
frank@theSerios.com
Direct: 302.541.4000
