Dewey Market Watch 9/28/22 thru 11/9/22

      Happy Veterans Day!  Thank you for your service and sacrifices that allow us all to enjoy the freedom that we have today. All service members in all branches of the military, true American heroes. Thank you! How about this beautiful summer like weather! Temps were in the mid 70’s to 80 degrees for the last 3 days. Gorgeous! What a rapid change in the market. There’s minimal activity at the present time. Properties are still selling in the resort area but not at the pace that we’ve seen in the last couple of years. . The lack of inventory hopefully will keep the prices up. They should drop a little, how much we don’t know. ALL markets are fueled by supply and demand and demand is still present in the entire county. The Dewey and surrounding communities still have a severe lack of inventory. The town of Milton is getting ready to approve, ready for this, 15,000 new homes, proving that demand is still present. Sussex county is still hot as ever and in full demand but the interest rates aren’t helping. Present rates are as follows 30 year primary 7.250% with 1 point, a 5 year ARM is 6.50% with a point, a 7 year ARM is 7.625% with a point, a 10 year ARM is 6.750% with a point. Second home rates are 7.375% with a point. We were all used to 3% -4% even 2.50% at one point which was a record low rate. Rumors are that we will see at least 2 more rate hikes in the very near future to help ease the inflation. It’s not the end of the world! Prices will come down to help offset the higher interest rates. We are in a niche market, it’s the beach resorts. Strong rental incomes will help support the market. New construction abounds in Dewey.

     The holiday season is upon us. I hope everyone has a safe and happy Thanksgiving!