Bethany Beach Sales Update

Strongly influenced by vacation home and investment property purchases, the local Bethany Beach market remains realtively strong. A local Realtor - Leslie Kopp - recapped the summer end on her website:

As the summer season ends, our real estate market is sending mixed messages. We usually use single-family homes as the surrogate for the entire market. With that measure, over the last 40 days to September 10, this year was weaker than a weak 2007. For example, only 14 homes went under contract compared to 17 in 2007. Using listing prices, the value changing hands (15.233m) was 31% lower than last year.

However, the picture shifts when adding condo/townhouses and vacant lots to the mix. 16 condo/townhouses sold this year compared to 13 in 2007, with listing prices 68% higher. In addition, 4 lots went under contract ($4.7m) but only 1 (.3m) last year.

Combining all types, 34 properties are changing hands this year compared to 31. The listing values were $31.6m, 7% higher. On a personal note, I had a strong 40 days, putting 9 properties with listing values of $14.8m under contract. Inventories are down compared to a year ago. I'll deal with inventories more later.

With cash purchases running about 30% of total sales, it's also evident that financing is still readily available for higher end purchases. I'm seeing a mix of large down payments and $417,000 loan for higher end properites alongside jumbo (greater than $417,000) financing. The most popular, and best pricing Jumbo mortgage today is the 5/1 ARM. This has a fixed rate for the first 5 years and then adjusts annually, ususally based on a LIBOR or Treasury index.

Call me if you'd like to discuss this market and the financing opportunities available.