Dewey Market Watch 2/28/2020 thru 4/1/2020
Corona bologna!!! Can you believe this is happening? The resort area is a ghost town. The home quarantine recommendation will probably go to a mandatory home quarantine similar to what Maryland just initiated. Two weeks ago the temperature soared to 86 degrees. The out of staters flocked to the boardwalk and beaches and with it came their corona. The number of cases in Sussex County soared the following 10 days and now leads the state in confirmed corona cases. Officials are asking EVERYONE to stay home. If you do not have a primary residence here stay home. The grocery stores are empty, the outlets are closed along with the beaches, boardwalk, restaurants, bars… Thank God the liquor stores are still open or there would be riots:)
The market has slowed to a crawl especially in the immediate resort area. All of the pending transactions mentioned in this update were pending before the Corona balogna. One week prior to the corona pandemic the interest rates plummeted to as low as 2.99%. The refi area of the market overwhelmed the banks in just two days so they raised the rates back up to 4.250. The rates have slowly trickled back down to 3.2% for a 30 year fixed with no points. What does this mean? People will start buying again! The uncertainty clearly has everyone concerned but when this virus is defeated we are going to see stock markets soar along with the real estate market. I believe that it will be record setting.
Presently it’s a buyers market with super low interest rates. Sellers are aware of the delayed market. Now might be an excellent time to grab a good deal! Speaking of good deals, my seller at 109R unit C is ready to “unload” his unit in Rainbow Cove. There’s a long history of rental income averaging $22K to $23K annually. Micro managing through VRBO may increase the income even more. The unit has been totally renovated to include paint, granite, carpet, vinyl flooring, bathroom vanities and floors, hvac mechanicals under one year old, plumbing fixtures and all new lighting. The unit appraised last summer BEFORE renovations at $380K. The unit next door had all original materials and closed about 1.5 – 2 years ago for $384K. Presently the seller has it listed for $369K which is already a steal well below market value! Seller says bring him an offer and lets “talk”. Presently ALL of my listings are priced very accurately if not a little below the market. All of my listing are supplied with virtual tours, still photos and drone shots. Virtual touring has increased dramatically since the corona outbreak. Please view my present listings on my home page, maybe one will strike your interest:)
It’s trying times for America and the whole world. Listen to the advice of the CDC, self isolate and we’ll all get by this in due time. Thank you ALL 1st responders, health field workers, janitors, truckers, grocery store clerks and the list is just too numerous to mention. Thank you all! Stay healthy and God bless!
|SINGLE FAMILY NEW||LOCATION||SIZE||ASKING PRICE|
|3 Clayton St.||Reho By The Sea ocean front||5bd/4.5ba 3,173sq’||$3,054,056|
|106 Dagsworthy St.||Dewey Beach Sub||3bd/2.5ba||$935,000|
|106 West St (back on market)||Rehoboth By The Sea||3bd/2ba 1,000 sq’||$1,099,000|
106 Dagsworthy is a 3bd/2.5ba coastal cottage. The home was built in 1980 and sits on an undersized 3,200 sq’ lot. Lots of deck space and two balconies offer plenty of outdoor entertainment area. 106 West St. went back on the market. Corona virus impacted borrowing abilities thus many pending transactions have gone to back on the market.
|SINGLE FAMILY PENDING||LOCATION||SIZE||ASKING PRICE|
|108 Cullen St.||Rehoboth By The Sea||3bd/2ba||$1,325,000|
|121 Houston St.||Rehoboth By The Sea||6bd/2ba||$799,900|
108 Cullen was a 3bd/2ba 1949 home that was accented with original pine walls and hardwood flooring. This rock solid home only lasted on the market for 57 days. Inventory is minimal so the price of single family homes is on the rise. 121 Houston is a 6bd/2ba single family/duplex home that comes with two rental licenses. The grandfathered duplex is split upstairs and downstairs. You could rent them individually or use one rent the other. The property offered many possibilities. Both of these homes were pending prior to the corona virus.
|SINGLE FAMILY INCREASE/DECREASE||LOCATION||SIZE||PREVIOUS PRICE||NEW PRICE|
|27 Chesapeake St.||Rehoboth By The Sea||6bd/3.5ba 2,600 sq’||$2,387,000||$2,247,000|
|25 Chesapeake St.||Rehoboth By The Sea||7bd/3.5ba 2,600 sq’||$2,387,000||$2,247,000|
|18 Chesapeake St. RBTS 57 yr lease @$24,976 yr||Rehoboth By The Sea||3bd/2ba 1,158 sq’||$849,900||$819,000|
|16 New Orleans St.||Rehoboth By The Sea||5bd/3.5ba 1,680 sq’||$1,299,000||$1,250,000|
There were four nice price reductions in the fee simple single family market. All of the homes were in the ocean block. 25 & 27 Chesapeake adjusted their price by reducing both homes $140K each. Opportunities like this don’t become available very often. Chesapeake St. is one of the most sought after streets in Dewey. Both homes are water front on Silver Lake and offer an easy walk into Rehoboth and Dewey. Please contact me for a private showing. 18 Chesapeake is a 1970 3bd/2ba 57 year leased land property. The annual lease id $24,976 yr. This home from yesteryear shows incredibly well and offers many possibilities. 16 New Orleans is a 5bd/2.5 ba Beach cottage with separate detached garage cabana located steps to the beach. Strong $50K rental income qualifies this for a nice ocean block investment.
|SINGLE FAMILY CLOSED||LOCATION||SIZE||ASKING PRICE||CLOSING PRICE|
|CONDOS NEW||BUILDING||SIZE||ASKING PRICE|
|2007 Bayard Ave.||unit #3 Baystrand||3bd/3ba 2,100 sq’||$799,000|
|1 St Louis St. ocean front||#104 Wilson Dunes||3bd/2ba 1,850 sq’||$1,900,000|
|1904 Coastal Hwy.(back on market)||unit D Surfrider||3bd/2ba 1,249 sq’||$515,000|
Unit #3 at 2007 Bayard Ave. is located in Baystrand. This unit is an over sized 3bd/3ba, 2,100 sq’ featuring bay views and an amazing private bay beach that is shared with only 6 other homes. 1 St. Louis is a rarely offered water front unit in Wilson Dunes. The kitchen and baths were recently updated and renovated which includes granite tops, recessed lighting, new cook top with down draft.
|CONDOS PENDING||BUILDING||SIZE||ASKING PRICE|
|1301 Coastal Hwy.||Unit #C413 Lighthouse Cove||2bd/2ba 1,047 sq’||$600,000|
|3 Seastrand Reho. 37 yr lease @ $9,888 yr.||unit #29 Seastrand||4bd/3.5ba 1,800 sq’||$829,000|
1301 Coastal Hwy. is a 2014 2bd/2ba Lighthouse Cove unit. The spacious 1,047 sq’ unit had all of the bells and whistles that you’d expect out of a Lighthouse Cove unit. 3 Seastrand is a 4bd/3.5 ba Reho. BY The Sea leased land property. The unit is an older lease that has 37 years remaining at $9,888 annually. I didn’t think that a Seastrand unit with an older lease would last very long, only 32 days on the market!!!
|CONDOS INCREASE/DECREASE||BUILDING||SIZE||PREVIOUS PRICE||NEW PRICE|
|35 Rodney Ave.||#1 Dewey Beach Dev||4bd/3.5ba 1,873 sq’||$1,149,000||$1,129,000|
|35 Rodney. Ave.||#2 Dewey Beach Dev||4bd/3.5ba 1,873 sq’||$1,149,000||$1,129,000|
|107 Rodney St.||Unit C Marina Reach||3bd.2.5ba 1,600 sq’||$650,000||$635,000|
35 Rodney unit #1 & #2 just reduced their price by $20K. These two properties show very well, nothing overlooked in this elegant new construction. Both homes feature open floor plans that accommodate easy entertaining! 107 Rodney unit C is an end unit townhouse. The unit is being offered furnished, recently renovated with hardwood flooring throughout, new kitchen cabinets, granite counters and renovated baths with new vanities, custom tile showers and tile flooring… Great location!!
|CONDOS CLOSED||BUILDING||SIZE||ASKING PRICE||CLOSED PRICE|
|102 Anchor Way||#18 Summer Winds||4bd/2.5ba 1,840 sq’||$1,295,000||$1,100,000|
It’s been a while since we’ve seen a large bay front unit close. The 4bd/2.5 ba, 1,800 sq ‘ unit had all of the upgrades that one would expect in a bay front home. Take a peak at the photos in the link and the pictures say it all, closed at $1,100,000!!!
|COMMERCIAL (ALL)||BUSINESS||LOCATION||ASKING PRICE|
|21 Van Dyke||Bell Buoy Motel||$2,100,000|
|2107 Coastal Hwy.||1000 sq’ retail space||Izzy Plaza||$244,999|
21 Van Dyke is the Bell Buoy Motel. This commercial property offers 16 units and an owners suite. Rental incomes have soared over the last few years. This would be an excellent renovation investment that surely could be supported with future escalating rentals. 2107 Coastal Highway is a 1st floor Izzy Plaza unit. The retail space consists of 1000 sq. , plenty of room for a small business owner to pedal their wares:)
|1 Clayton St.||ocean front Dewey Beach||50 X 100||$2,400,000|
|22 McKean Ave.||Indian Beach||101 X 100||$1,299,999|
|38737 Seagull Dr.||Indian Beach||105 X 70||$849,000|
|lot 26 Fisher||Dodds Addition||50 X 100||$750,000|
|Lot 1 Old Bay Rd. (Pending)||Ann Acres||.65ac||$499,900|
Lot 1 Clayton St. is the only ocean front lot for sale in Dewey. The lot is also being offered as a home/lot package for $3,006,290. There are two lots available in Indian Beach. The 1st lot is 22 McKean located on the ocean block of McKean and the 2nd lot 38737 Seagull is located on the bayside on Seagull Dr. Lot 26 on Fisher Street is a typical 50 X 100 lot that faces Fisher St. Easy access to the beach through Cottage Lane, to Pine Lane to the ocean block of Chesapeake St. Great location!! Pending contract is lot 1 Old Bay Rd. The lot was part of the old Dodd farm. This .65 ac. lot is situated in a very quiet area yet steps to all of the resort activities. A .65 ac lot is hard to come by this close to the beach.