Luxury Home Sales Booming In Delaware And Maryland
Apr 07, 2021
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Luxury home sales in the Delaware and Maryland Eastern Shore beach locales boomed in 2020. In Delaware’s Rehoboth Beach, there were almost 1,000 sales, up 46% from 2019, while house and condo sales in Bethany Beach and Fenwick Island grew by 30%. In Maryland’s Ocean City, there were over 2,000 sales, a 33% increase. Usually, investors buy up beach properties to rent to vacationers, but now most buyers are purchasing second-homes as nearby refuge from city life.
Soaring prices
Luxury home prices are soaring due to a combination of scarcity and high demand. The average price in Lewes, Delaware, was nearly $419,000, up 6% from last year, while the total number of active listings decreased by over 30%. Oceanfront properties are often valued at $1 million; there were 133 sales of $1 million-plus homes in Bethany and Fenwick in 2020, a 47% increase from 2019. “2020 was a strong year for real estate in the Rehoboth Beach and Ocean City areas, with median days on the market cut in half,” said Bright MLS Director Christy Reap. Most homes sold within 30 days.
Seller’s market
With more luxury properties on the market, sales could be even better across Delmarva. “Overall, sales counts turned around in May 2020, and have grown at very high rates since. Total listings have decreased, suggesting that homes are selling at a very fast pace. Listings are coming down quickly due to the speed at which homes are being purchased,” said Dan Handy, economic data analyst at Zillow. Joanne Young, broker at Berkshire Hathaway’s HomeServices Gallo Realty, echoes this. “I can tell you that it is a seller’s market and we do not have enough inventory for our buyers. My last sale closed $30,000 above list (price) with multiple offers,” she said.
Design trends
As people spend more time at home, current luxury design trends are increasing in versatility and comfort. In particular, with an increased interest in ranch design, architecture mountain homes are in high demand. Large windows and abundant natural light provide homeowners with stunning panoramic views. Additionally, open floor plans are paving the way for multifunctional design. Buyers are favoring homes with enough room to live, work, exercise and holiday.
Strong sales and growing prices are set to continue in Delmarva throughout 2021. There’s been “no slowing in buyer demand and the continuation of very limited inventory, so prices are still rising,” notes Christi Arndt, sales manager at the Leslie Kopp Group, suggesting that the trend is set to continue.
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