Gail n Greg - Your Agents @ The Beach

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The primary purpose of this blog is to keep the residents of our farming communities (King's Creek, Country Club Estates, North Rehoboth and Paynter's Mill) informed on a day to day basis of all activity in their respective communities.  Also, we post a monthly market sales analysis for anyone who may be interested in what's going on in Sussex County Real Estate.  If anyone has any suggestions as to any other content they would like to see, feel free to email or text us with your comments.

PRICE DECLINE - 80 KENT STREET - NORTH REHOBOTH BEACH

The estate trying to sell this corner lot seems to be very proud of it.  It is a 100x100 lot (10,000 sq ft) and can be subdivided.  The shack sitting on it is only an annoyance and adds nothing to the value.  It was originally listed in February of 2007 for $2,250K (those were the days) and has been reduced several times and had a couple of Broker changes.  It has been reduced this time to $1,425K.  They're almost there....it sits on the corner of 5th and Kent.  MLS #570181

NEW LISTING IN PAYNTER'S MILL - 16502 JOHN ROWLAND TRAIL - MILL SPRING RUN

If this address sounds familiar, it's because this Easton model has been listed a couple of times before.  It is owned by the sales rep (Realtor) who represented the Builder when these RDM homes were sold new.  It has been rented for the past few years but is being cleaned up before sale.  It is being listed for the VERY aggressive price of $349,000.  The average selling price of the 28 Eastons sold was $396K, the highest went for $478K.  Bargain hunters should be all over this one.  All previous Easton listings have been withdrawn.  The last one to sell was the former model on the pond and it went for $457K back on April 24th, 2007.  MLS #573807 

UNDER CONTRACT IN NORTH REHOBOTH - 46 PENNSYLVANIA AVENUE

 After 311 days on the market, this Lingo listing went under contract at $2,149K.  It originally listed for $2,495K back in June of 2008.  It is a new construction home near Lake Gerar, a couple of blocks from the beach.  If it settles for anywhere near it's asking price, it will be the highest priced home to sell in North Rehoboth this year.  Only  3 of the 13 properties closed this year sold for over $1MM.  There are now 4 properties under contract in North Rehoboth.  We are going to end up with under 20 properties closing in 2009.  There are 37 active listings.  Do the math.  MLS #568206 

PRICE DECLINE - 73 PARK AVENUE - NORTH REHOBOTH BEACH

This Jack Lingo listing is being reduced for the first time since it was listed on Sept. 23rd of 2009 (43 days ago) and is now listed at $1,900K.  They started at $2,150.  MLS #572760.

CLOSED - 319 SANDALWOOD ST - COUNTRY CLUB ESTATES - REHOBOTH BEACH

I was anxious to see this house settle as I showed it several times and thought it to be a great value in town.  RE/MAX in Rehoboth had the listing since 5/2/09.  It originally listed for $579K and had been reduced once to $569K.  My clients submitted a written offer for $539K back a few months ago.  The Sellers were "insulted".  It closed on 11/3/09 for $525K.  That brings the total to 10, the number of closing in Country Club Estates so far this year.  The average selling price is $586,640 and the average DOM are 305.  There are two more under contract, one a townhouse.  This was a good buy in my opinion.  MLS #569354.

PRICE REDUCTION - 5 COMFORT COURT - KING'S CREEK COUNTRY CLUB - REHOBOTH BEACH

Lingo only listed this property 60 days ago, much less time on the market than the average listing in King's Creek (344 days).  The Sellers have reduced the price from $1,345K down to $1,295K.  That's the fourth price reduction so far in Q4 and it brings the average listing price of a home in KC to just over $1MM.  The average selling price of the 3 homes to close this year is only $843K.  Apparently there is a disconnect between Buyers and Sellers in King's Creek.  MLS #572239

CLOSED - 20 BROOKLYN AVENUE - SOUTH REHOBOTH BEACH

Ocean Atlantic Sothebys closed on this one time Bed and Breakfast home on the ocean block in South Rehoboth.  It was on the market for 763 days and was originally listed for $2,495K.  It sold for 72% of that or $1,790K.  It had been fabulously renovated and was quite the deal in my opinion.  That makes six closings in South Rehoboth so far this year.  There are three more currently listed as under contract and 26 active listings.  This is the highest priced property to sell in South Rehoboth this year.  MLS #561084

SALES STATS - OCTOBER 2009 - "MOSTLY" SUSSEX COUNTY

Just when we were getting used to the fact that people were out there buying real estate, the holiday season is now upon us and that usually means slow sales from here to February.  The reason I inserted the word "MOSTLY" into the heading of this post is because I noticed throughout the month of October, Keller Williams kept adding listings from upstate.  They have now opened up our MLS for other counties and this is going to skew my numbers somewhat.  By no means will all of the Kent and Newcastle listings get into our MLS, just some of them where the Broker is looking for additional exposure.  I can't quite figure out why, I don't sell anything up there.  Well, a case in point is that Single Family Home (SFH) inventory jumped up this month by 1.7% over September, a full 9% above end of 2008 inventory.  I think this is due primarily to the addition of these out of Sussex listings.  There were 3,242 active listings at the end of October, a 23.6 months supply based on the average closing rate of 138 SFHs per month YTD.  The average selling price however went up to the highest level this year, $382K per home bringing the YTD average price up to $348K.  This is due to the fact that more higher priced properties are starting to move, not that the home values are appreciating unfortunately.  Properties "under contract" came down by the end of October to 346, the lowest level in three months.  Some good news is that 178 SFHs closed in October, also the highest number of closings in any month this year and a full 14% ahead of October, 2008.  We're now at 94% of 2008 closings YTD.  The amount Sellers got for their properties as a % of listing price dropped to 91.1%, below the YTD average of 92.2%.  This is particularly troubling as one would think now that Sellers are listing at "closer to realistic" pricing they would start to get a higher percentage of their asking price.  This is not the case yet, and until inventory starts to drop you will not see prices firming.  Smart real estate investors now should start moving their focus off of price and on to interest rates.  With the Fed ending their mortgage backed securities purchasing program, rates are slated to increase by as much as a full percentage point or more. 

Now for you Condo/Townhouse (c/th) enthusiasts.  There's good news, closings were almost 35% ahead of October 2008 bringing us to 92% of last year YTD.  Inventory came up 2.4% to a YTD increase of 5.4% from end of year 2008 inventory.  The average selling price came in about the same as September, $327K which is well below the YTD average of $343K.  C/TH sellers got 92.5% of their asking price in October, more than the 91.5% YTD average.  THERE ARE SOME GREAT DEALS OUT THERE ON CONDOS.  HAPPY THANKSGIVING!!!

WITHDRAWN - 4 PROSPECT ST. - SOUTH REHOBOTH BEACH

This huge ocean front house has been on and off the market umteen times over the 540 days it has been active.  They have reduced the price, raised the price and even went to auction at one point.  Believe it or not, it first listed back on May 9, 2008 for $8,750K.  Mann & Sons had it listed for $4,995K when it was withdrawn on 10/31/09.  My guess is that we will see it active again soon, but at what price?  MLS #559834

UPDATE 11/3/09 - Well as predicted, it didn't take long for this property to come back on the market.  Lingo has now listed this home in South Rehoboth at a reduced price of $4,950K.

UNDER CONTRACT - 137 HENLOPEN AVE. - NORTH REHOBOTH BEACH

This is a RE/MAX Rehoboth listing.  This brick colonial circa 1967 is under contract after 488 days on the market.  It originally listed for $2,750K and was listed at $1,750K at the time of YIKES!!  This house sits on 20,000 square feet of North Rehoboth real estate.  There are now three properties under contract with 13 closed so far this year.  MLS #560834

WITHDRAWN FROM SALE - 55 SUSSEX ST. - NORTH REHOBOTH BEACH

RE/MAX Rehoboth listed this overpriced relic on an undersized lot on Sussex St. back in January of 2008 for $1,100K.  They apparently are giving up or they are changing Real Estate Brokers after 655 days on the market.  It was listed for $985K at the time of withdrawal.  That leaves us with 38 active listings in this part of town.  MLS #556039

HOME BUYER TAX CREDIT

In case your not following, Senate Democrats are indicating that the first time home-buyers tax credit will be renewed.  The one set to expire on December 1, 2009 calls for a $8,000 or 10% tax credit for new home buyers.  The property has to close by November 30th in order to qualify for this tax credit.  There are also income as well as other restrictions in order to qualify.  Bloomberg news is reporting today that "Senate Banking Committee Chairman Chris Dodd says Senate Democrats have agreed to extend the first-time home buyer tax credit.  The latest version extends the program to home sales signed - not closed - by April 30.  Purchasers would have another 60 days to close the sale.  The credit will also be expanded to include so-called step-up buyers who have lived in their current home for at least five years.

The credit would be cut slightly to a $7,290 cap.  Income eligibility for first-time home buyers would stay the same, but it would rise for step-up buyers to $125,000 for individuals and $250,000 for couples."  Source:  Bloomberg News, Dawn Kopecki and Ryan Donmoyer (10/27/09)

I'm also in possession of a letter written by our Congressman Mike Castle to a local Lewes builder which states that "Currently, discussions are taking place in Congress to extend and increase the first time home-buyer tax credit, and the Home-buyer Tax Credit Act of 2009 (S. 1230) was introduced in the Senate on June 10 to do so.  S. 1230, sponsored by Senator Johnny Isakson  (R-GA), would extend the housing tax credit for one year after passage and increase the maximum amount to $15,000.  It would also remove the income restriction on who may qualify to receive the credit."

While I do believe that the tax credit has been stimulative to the housing market, I remain a free market capitalist.  I think many of these purchases would have taken place any way and there are always those out there trying to milk the system.  I think legitimate first time home buyers have benefited from this legislation but I personally think we have had enough government intervention.  For the short term, those that want to take advantage of low prices, high inventory and low interest rates may wait to see how this bill is going to come our instead of moving now.  It's like the "cash for clunkers" where 80% of the people who took advantage of the program would have bought any way and we the tax payers get stuck with the bill and as soon as the stimulus is removed, activity drops way down while everyone waits for the next "fix".  I think the incentives I mentioned above, ie low prices, interest rates and high inventory are enough of a stimulus to put this housing market back on track in an orderly fashion.  Just my .02 worth.  Any comments out there? 
 

WITHDRAWN - 45 COLUMBIA AVE. - NORTH REHOBOTH BEACH

This Lingo listing in North Rehoboth has been withdrawn from the market after 350 days.  It was listed for $1,595.  I attended an agent open house there and the home is very nice.  Perhaps the Seller is just taking a break for the holidays as is common this time of year or maybe they are just changing Brokers.  At any rate, the MLS # is 564794 if you wish to look up the details of this property.  Try our website (new website coming soon) at www.GailnGreg.com 

PRICE DECLINE - 9 DELAWARE AVE. - SOUTH REHOBOTH BEACH

This Jack Lingo listing came on the market a mere 71 days ago at the price of $1,795K and has now been reduced for the first time by $100K to $1,695K.  That's just below the average listing price of the 27 homes listed for sale in South Rehoboth, $1,816K and 396 DOM.  MLS #571813

PENDING - 106 SCARBOROUGH VILLAGE - COUNTRY CLUB ESTATES - REHOBOTH BEACH

This RE/MAX Rehoboth townhouse is the 4th and last active townhouse to go under contract this year.  It is being sold partially furnished and was listed at $425K at the time of contract.  It originally listed back in April for $460K.  The other 3 sold for an average price of $418K so expect that this one will be pretty close to that.  MLS #568510

PRICE REDUCTION - 803 MILLER'S LANDING - PAYNTER'S MILL

This second floor 3br unit listed by Ocean Atlantic was off the market for a week or so but has come back on with a reduced price.  It originally listed for $298,852 and has been reduced a couple of times now to $250,852.  There is only one other Nellie Stevens model currently active at a price of $279K, recently increased from $250K.  MLS #567631

BY POPULAR DEMAND, SOUTH REHOBOTH HAS BEEN ADDED TO MY POSTINGS

902 Bayard Ave. was just listed by Mann & Sons in South Rehoboth.  It was listed for $1,995K.  There are now 27 active listings in South Rehoboth, 4 are currently under contract and 5 have closed so far this year.  The average listing price of a home in S. Rehoboth is $1,820K.  The average price of a home sold so far this year is $1,285K and was on the market for 167 days.  Stay tuned for more on South Rehoboth.  MLS #573545

CLOSED - 309 COUNTRY CLUB DRIVE - COUNTRY CLUB ESTATES - REHOBOTH BEACH

This Lingo listing went for the second lowest price so far this year in Country Club Estates.....$490K.  It originally listed for $575K back in June of 2008.  I've been in this one too and it was pretty rough.  The house has never been updated since it was built.  I would tear it down and re-build.  That's 9 now that have closed this year and 2 more still under contract.  MLS #561148

UNDER CONTRACT - 80 SUSSEX ST - NORTH REHOBOTH BEACH

This Jack Lingo listing was on the market for 252 days.  This is a new construction home built on one of the old Brown lots that were purchased a couple of years ago by a speculator.  I was inside this house the other day for an Agent Open house.  It's not quite complete but very nice with many cool upgrades.  It was listed for $1,295 and was at that price when it went under contract.  This is the 15th house to go under contract this year, 13 have closed.  Only 5 closed in the first half of the year, the other 10 in the second half.  It looks like the "big money" is finally jumping in and picking off some of these great deals.  There are 41 more that are now active in North Rehoboth.  By the way, the average selling price of all 15 properties is under $1MM and of the 13 that have closed, the average days on market is 364 and they went for 76% of their original asking price.  MLS #566483

EXISTING HOME SALES RISE 9.4% IN SEPTEMBER!!!

This is no trick as we settle in for another Sea Witch Festival here in Rehoboth.  The National Association of Realtors reported today that September existing home sales were up 9.4% in September, the largest monthly increase in 26 years.  Now many are attributing this to the first time home buyer tax credit incentive that expires at the end of November.  For those of you that are not paying attention, that's a tax credit for 10% of the purchase price or $8,000 whichever is less for anyone buying a home that has not owned one in at least 3 years.  I don't think that is the case in our market however.  Of the 20 properties we have sold since March, only two have been to first time home buyers.  I think it has more to do with low interest rates and cheap prices.  Builders have been discounting inventory homes at unprecedented rates and offering incredible incentives to buy.  One near here in town is offering to pay your first years mortgage payments and offering to buy the mortgage interest rate down to 3.99%.  9 of our 20 sales have been new construction.  The bottom line is that we have hit bottom and now is the time to jump in if you haven't already.  Interest rates are projected to go up as our national debt goes up, and inventory is going to start coming down.  Enjoy the festivities in Rehoboth this weekend. 

UNDER CONTRACT IN COUNTRY CLUB ESTATES - 309 STOCKLEY

Price it low and they will come.  Beach to Bay Realty just listed this house 7 short days ago at the price of $480K.  That represents a "steal" in this community and it didn't take long for some thief to pick it off.  This will obviously have an adverse effect on values in CCE but what the heck, they wanted to get it sold so they priced it aggressively and offered a $2,000 Realtor bonus and vwaala.  There are now 3 homes under contract in CCE with 8 closed so far this year.  There will likely be 11 closings in this community this year.  That's almost as many as in all of North Rehoboth. 
MLS #573236

PRICE REDUCTION - 52 SUSSEX ST. - NORTH REHOBOTH BEACH

This agent owned, Lingo listed property in North Rehoboth has been on and off the market a couple of times.  It originally listed this time in July for $1,125K and has been reduced now for at least the third time to $999,500.  It's a nice house, very vertical.  It's competing with 41 other homes in North Rehoboth.  MLS #571032

ANOTHER SCHELL BROS LISTING IN MILL POND COMMONS - PAYNTER'S MILL

They call this the Marshall model and is another import from their Heritage Creek development in Milton.  The base price for this model is $369,900.  MLS #573342
  

COUNTRY CLUB ESTATES - PRICE DECLINE - 111 SCARBOROUGH

This home has been on the market longer than any other in Country Club Estates, 741 days.  It originally listed for $1,375K and has been reduced several times and now is offered for $990K.  There are 9 other active listings in this community with an average listing price of $779K and 452 DOM.  MLS #572794

NEW LISTING IN MILLER'S LANDING (Back On Market) - 1602 - PAYNTER'S MILL

Well, I'm afraid a new real estate agent may not be the answer here but this Seller has decided that perhaps it is.  Lingo in Lewes now has this listing, it was with RE/MAX in Lewes up until it was withdrawn on October 5th.  The problem is not the agent, it's the price.  The Seller had it listed before for $284,500 with $5,000 in Seller assistance.  They have now reduced the price to $264,900 with no help.  Three of these Crepe Myrtles have sold this year with an average selling price of $221K.  This is a first floor 2 bedroom model.  This condo was on the market for 660 days when it was withdrawn so now we're at 663.  Good luck.  MLS #573290

SOLD IN NORTH REHOBOTH !!! 46 HENLOPEN AVENUE

Lingo (Buyer's agent) and Prudential in Lewes (Listing Agent) worked out a deal just 3 days prior to the scheduled auction of this property in North Rehoboth.  It had been listed for a cumulative 1054 days and sold for 56% of it's original listing price of $2,325,000.  Final selling price... $1,300,000.  That's the 13th house to close in North Rehoboth.  The average selling price has been $993K and 364 DOM.  MLS #566198

PRICE REDUCTION - 66 COLUMBIA AVE. - NORTH REHOBOTH BEACH

Lingo takes their first 6% price decrease on this North Rehoboth property in the Pines.  It originally listed last March for $1,595 and has now been reduced to $1,495.  It is being sold furnished.  MLS #567207

NEW LISTING IN COUNTRY CLUB ESTATES - 309 STOCKLEY

The Beach to Bay agent is a little slow on the draw as she hasn't posted a picture of this property yet.  It is an estate sale and is a small home on a standard lot.  They have listed it at the lowest price of any property in Country Club Estates, $480K.  There are now 9 active listings in CCE with an average listing price of $790K.  There are two under contract and 8 have closed.

SMALL PRICE REDUCTION - 141 HENLOPEN AVE. - NORTH REHOBOTH BEACH

This Lingo listing is being reduced for the second time to $875K.  It has been on the market for 116 days.  It is one of eight currently listed on Henlopen Avenue.  It originally listed for $915K.  I think they still have a ways to go.  It sits on a standard lot (50x100) and looks like it may be worth a little more than "lot value".  If you're interested in what "lot value" is, call us and we'll share that info with you.  42 properties listed now in North Rehoboth.  MLS #570208

THE "SHORT SALE" CURSE - 16629 HOWARD MILLMAN - MILL POND COMMONS - PAYNTER'S MILL

It was bad enough when this Keller Williams listing came on back in July for $275K.  But they have now reduced it for the second time to $265K.  This is a 3 bedroom "Twin Home" built by Beazer.  These were the most popular of the Beazer products when this community first went up.  All new construction Twin Homes sold for in excess of $350K (or close to it).  This unfortunately is a sign of our times in real estate.  The owner of this property either couldn't afford it to begin with or has had some life altering event take place that makes it impossible for him/her to afford it now.  Therefore, it is being sold "pre foreclosure" by the owner at a price well below what they owe on it.  They have made a deal with their lender to get as much as they can for the home and the lender will "forgive" them the difference.  The lender will then issue them a 1099 tax form so that they will have to pay capital gains taxes on the difference between what they owed and what it sells for.  The reason no one has picked it up yet is that agents HATE to sell "short sales".  Why?  Because they take so dang long to conclude and Realtors are at the mercy of the bank who ultimately determines if they are going to pay them a commission at all.  Realtors need to make commissions in order to pay their bills and feed their families.  We like to know how much we are being paid and that we will in fact get paid.  Also, the banks are so backed up with short sales and foreclosures that it takes forever to get these deals done.  They may get multiple bids on a given property and then they take the best one.  So if your a Buyer, you may put in a bid, wait 4 months only to be told that you did not get the property because someone else had a better offer on the table.  Unfortunately for those of us who live in the neighborhood, these sales bring our property values down.  Even though appraisers aren't supposed to use these "distressed sales" as comparables, I know for a fact that they have (in our neighborhood).  Sometimes that's all they have.  Oh well, sorry for the long post but thought this would be a good time to point out the pit falls of a "short sale".  This leaves the other Twin Home Sellers in a precarious position.  There are 2 other 3 bedroom units currently listed for $339,900 and $334,999 and 2 four bedroom units listed for $305K and $349K.  One of them is our listing, sorry.  MLS #571565

NEW LISTING - 1205 MILLER'S LANDING - PAYNTER'S MILL

Lingo in Lewes just listed this Bonica Rose model.  There are now two of these 2BR 2nd floor units for sale.  Both are being sold unfurnished.  This one has been listed for $205K and the other one is listed for $198,900.  You would think that would be enough to at least generate an offer.  We're back up to 12 active listings now, 9 re-sales and 3 Builder models.  MLS #573211

UNDER CONTRACT - 85 SUSSEX ST. - NORTH REHOBOTH

Lingo just listed this recently renovated home on Sussex St 14 days before it went under contract.  Is sits on a small non-conforming lot and is "condo'd" with the small garage turned efficiency sitting behind it.  It listed for $779K and was at that price when it went under contract.  I'll bet it sold for very close to that price too.  That leaves 42 properties active in North Rehoboth.  There are now two under contract and 12 closed in 2009.  MLS #572892

UNDER CONTRACT - 319 SANDALWOOD - COUNTRY CLUB ESTATES - REHOBOTH BEACH

RE/MAX in Rehoboth actually got this home under contract on September 25th but left it active until yesterday when the financing and home inspection contingencies were removed.  It was only on the market for 128 days and had been reduced in price one time from $579K to $569K.  It is the 10th property to go under contract in CCE this year with 8 of those closing successfully.  Stay tuned for actual selling price.  MLS #569354

NEW LISTING - 332 HICKMAN STREET - COUNTRY CLUB ESTATES - REHOBOTH BEACH

Lingo listed this property on Tuesday, the 7th for $749,900.  It is being sold furnished, has 5 bedrooms and has been completely renovated.  This brings the number of active listings in CCE to 9 with an average listing price of $800K and 404 days on market.  8 have closed so far this year with one still under contract.  The average selling price so far this year is $606K, 75% of the average original asking price.  Sold properties averaged 310 DOM.  MLS # 573126

NEW LISTINGS IN NORTH REHOBOTH BEACH

   45 MARYLAND AVENUE - This RE/MAX Rehoboth listing actually came on the market last September, 2008 and listed for $1,750K and was withdrawn in May.  It is now being re-listed for $1,625K.  It is on the second beach block and has a good rental history.  MLS #573086

  93 HENLOPEN AVENUE - Another RE/MAX Rehoboth listing, this one on an over-sized lot (9,000 sq ft).  It has been listed for $1,750K  This brings the number up to 43 active listings in North Rehoboth with 13 sold so far this year.  MLS # 573080
 
 

PRICE INCREASE!!! 903 MILLER'S LANDING - PAYNTER'S MILL

Now here is an interesting strategy....this 3BR 2nd floor Nellie Stevens model has been on and off the market several times.  It originally came on in June of 2008 and was listed for $304,900K.  There were two sold in 2008 averaging $247,500.  903 Miller's was then withdrawn in November when it stood at $299K.  It came back on the market in March of 2009 with a discount Broker and was listed for $259,900...ok that's a little more realistic.  It subsequently was reduced to $249,999 and then withdrawn in September of this year.  It has now come back on the market with the same discount Broker (Help-U-Sell) at a price of $279K.  There is one other Nellie for sale listed at $258,850.  These are interesting times to say the least.  MLS # 567743 

PRICE REDUCTION - 32 OLIVE AVENUE - NORTH REHOBOTH BEACH

Ocean Atlantic Sothebys listed this home on February 3rd of this year for $1,550K.  It has now been reduced to $1,495K.  It's one of 41 properties to choose from in North Rehoboth.  MLS #566252

SELLERS GIVING UP IN PAYNTER'S MILL

This was a RE/MAX in Lewes listing.  1602 Miller's Landing is a Crepe Myrtle model (2br 1st floor) that has been on the market for 660 days.  It originally listed for $295,500 and has been reduced several times and was at $284,500 (offering $5,000 closing help) at the time of withdrawal.  It appears that the reality of the fact that 3 of the units to sell this year have been Crepes and their average selling price has been $220,667.  That is a harsh reality to accept.  This leaves no Crepes on the market for sale.  There are however, 11 other units listed....8 of which are re-sales.  MLS #565141

This was our listing at 16351 John Rowland Trail.  We listed it back on February 16, 2008.  It originally listed for $354,900 and was reduced several times over the course of the listing, finally at $313K at the time of withdrawal.  This same thing has happened to many Sellers, they couldn't accept the reality of the severity of the market when they first listed.  They know what they had in it and weren't going to take a loss.  Well, guess what?  Almost everyone that bought in 2003 and after and is selling now is taking a loss.  So we just chased the market down, never being able to keep up with the new home builders.  They were much more aggressive at reducing their prices.  There are only two homes left for sale in Mill Spring Run (the RDM cottage home section of Paynter's Mill).  Both are Scarborough models, one listed for $279K and the other listed partially furnished for (believe it or not) $369,900!!  The last one to sell went for $293K.  MLS #557186
 
 

CLOSED !!! 902 MILLER'S LANDING - PAYNTER'S MILL

RE/MAX in Rehoboth closed this unit on 10/2, the second one closed in Q4 and the 5th one to close this year.  This is a Crepe Myrtle, 1st floor 2 bedroom model.  This is the third Crepe to sell of the five sold.  It originally listed 866 days ago for $314,900.  It sold for 32% less than that at $214,000 plus the Seller gave the Buyer a years HOA/Condo fees (worth $3,496).  This brings the average selling price of a Crepe in 2009 to $220,667. The average selling price of a Crepe in 2005 was $255,074 (6 sold), in 2006 it was $282,497 (4 sold), in 2007 there was one sold for $301,302 and in 2008 one sold for $298,900.  MLS #564370

SOLD IN NORTH REHOBOTH BEACH!!!!!

 Mann & Sons just closed this property at 62 Henlopen Avenue on October 2nd.  It sold for $950K or 79% of the original asking price of $1,195K.  It was on the market for 292 days, right about at the average for the 12 homes closed this year in North Rehoboth.  I guess one could say that this is the "average" home that has sold so far this year in NR as it sold for about the average price of the 12 homes sold ($967,708) and the Seller got the average % of the original asking price which has been 79% so far this year.

This Lingo listing at 23 Columbia Avenue was sold furnished and went for $1,700K or 85% of it's original asking price of $1,990K.  It was only on the market for 67 days.  We're now up to 12 closings in North Rehoboth this year, 9 of which have taken place in Q3 & Q4 indicating that this community is heating up.  There is still one property under contract and that is 46 Henlopen Avenue which just went under contract on September 25th just ahead of a scheduled auction.

 This Lingo listing has now been reduced for the first time since it was listed back in February of this year.  It has been reduced by 10% to $1,995K.  This is a standard 50x100 lot on the second block from the ocean.  It is being sold furnished.  MLS # 566840
 
 
 

BACK ON MARKET AND PRICING ACTIONS - KING'S CREED COUNTRY CLUB - REHOBOTH BEACH

This nice home in King's Creek Country Club (4 Comfort Court)  is owned by a Realtor.  She has switched Real Estate Companies so has withdrawn and then re-listed this property.  She originally listed it in October of 2008 for $825K and has reduced it a couple of times, getting as low as $659K.  She has actually raised the price with this re-listing to $679K....MLS # 572967.  Oh, she is now with Coldwell Banker Resort Realty.

4 Mitchelmore Court has actually been increased too.  It originally listed back in July of this year for $1,175 and was reduced to 1M and has now been increased to $1,100K.  I think people are sensing that the market may be firming up or that they are only getting low ball offers and need more negotiating room.  I think the market is starting to firm up, however in King's Creek there are 15 homes on the market with only 3 being sold this year.  Price increases may be a little premature.  MLS #571240.....this one is listed by Beach To Bay Realty.
 
 

GOOD NEWS FOR MILL SPRING RUN AND MILL POND COMMONS OWNERS!!

I reported here the other day that Schell Bros./Ocean Atlantic Sothebys had listed this home on two of the four lots left vacant in Mill Pond Commons.  I was surprised to find that they listed it at a base price of $309,900.  Well, today they increase the base price offering to $339,900 so in order to get it "comfortably upgraded", it will now sell in the $375K to $400K range.  That's good news for current owners of single family homes in Paynter's Mill.  MLS #572782

JUST CLOSED!! 504 MILLER'S LANDING - PAYNTER'S MILL

This is a Builder unit, Greenspire Linden model (2br - 2nd floor) that went for it's most recent listing price of $249,900.  I'm guessing that the Builder threw in some closing costs or the Buyer had no Buyer's Agent to help negotiate for them.  It's very rare for a condo to sell at it's list price even if it has been reduced, especially since the last Greenspire to sell last December went for $230K.  This one was originally listed for $299,900.  At any rate, this is the 4th condo to sell in Paynter's Mill this year.  3 have been Builder units and one a re-sale.  This is a "teachable moment".  Always use a Buyer's Agent even with new construction as Builder Sales Reps want to keep you in the dark as much as possible about the market.  People tend to think they will get a better price since the Builder doesn't have to pay a co-op sales commission but in most cases I believe they just put the money back in their own pocket.

Q4 - FIRST PRICE REDUCTION - 118 KING'S CREEK CIRCLE - KING'S CREEK COUNTRY CLUB - REHOBOTH BEACH

This RE/MAX Rehoboth listed property has been reduced several times now and is currently listed for $699,900, down from  the original list price of $799K.  It was listed back on April 16th of 2009.  This brings the average listing price of a home in King's Creek to $1,024K.  There are 14 active listings in this community.  The average selling price of the three homes to close so far this year is $843K and 698 DOM.  MLS #568415

THIRD QUARTER/SEPTEMBER SALES STATS - SUSSEX COUNTY

It looks as though the housing market in Sussex County is coming in for a soft landing.  I'm not one of those who thinks that we're out of the woods yet but I'm also not one of those who thinks this "shadow inventory" is going to catapult us back into a renewed housing slump.  I called a bottom in the last month or so and have been patiently waited for the sales numbers to validate that call.  I think the September numbers offer that validation.  Single Family Home (SFH) inventory dropped in September by .9% from August to 3,191 properties for sale.  This is still 7.3% above the inventory on the books at the end of 2008.  Keep in mind however, that the end of year inventory is artificially low as many Sellers pull properties off the market around Thanksgiving and they remain off the market until January or February.  People just don't like the hassle of people coming through their house during the holidays.  Having said that, there are those who have been waiting for some sign of recovery before listing their property and that will continue to put pressure on inventory levels.  Closings for September came in at 107% of last September with 159 closings.  August was a big month for closings helping to bring the Q3 total up over Q3 of 2008 by 8%.  The good news is that properties "under contract" also rose slightly to 357 (up from 355 in August).  This is the third month in a row that "under contract" properties has increased.  In September, Sellers got 92.4% of their listing price at the time of contract and the average selling price of a SFH was up significantly to $362K (up from $327K in August) to the second highest level of the year.  This indicates that the higher end Buyers are creeping back into the market finally.  Unfortunately, we still have a 24 months supply of inventory based on the YTD closing rate of 133 per month divided into the current inventory of 3,191 homes.  YTD, we stand at 91.2% of the same time last year but we're gaining fast.  Average listing prices are still coming in way above average closing prices ($459K vs $362K) so Buyers and Sellers are still out of sync with each other.  There were 156 closings in the month of October, 2008 so we have a big nut to crack this year but I think we will get there if these banks will get off their butts and speed up the "Short Sale" process and get their appraisers under control.

The condo/townhouse (c/t) situation is not as rosy.  In September there were 54 properties reported closed to the MLS (remember, not all Builders report to the MLS).  This was only 95% of last September and only brings us up to 80.5% of last year YTD.  Inventory did come down 2.3% from August and properties under contract went up to 113 (from 111 in August).  This too is the third strait month for increases in under contract properties.  The average selling price of a c/t in September came way down to $326K (from $394K in August) and well below the YTD average of $345K.  This is probably due to deep discounting by Builders in an attempt to get these units sold.  We are looking at a 24 months supply here also.  Sellers got 91.1% of their asking price, above the 87.9% in August.  What we don't know is how much closing cost help and free or discounted "upgrades" Builders are offering as these are not reflected in the selling price.  This holds true for SFHs as well.  Here's hoping for a strong finish in Q4.

For anyone interested, click on the file attached to see the spreadsheet I work from....Download CountySalesStats

TWO NEW LISTINGS IN NORTH REHOBOTH BEACH

Lingo just listed this newly renovated home at 85 Sussex for $779K.  It has a strange arrangement with a small converted garage on the lot with it.  They are "condominiumized".  This home has the lions share of the lot and was taken down to the studs this past year and completely renovated.  It has one of the oldest oak trees in Rehoboth in it's front yard.  MLS #872892

This is also a Lingo listing and is new construction.  An investor bought the double lot and has built two nice homes on them.  This one is listed for $1,585.  There is a nice profit built into this price.  This makes Sussex Street tied for second with the most listed properties in North Rehoboth with six listed for sale, tied with Henlopen Avenue and second to Columbia Avenue with 6 and 7 respectively.  North Rehoboth now has 40 actively listed properties for sale with an average listing price of $1,541K and an average DOM of 391.  10 have closed this year and there are 3 currently under contract.  The average selling price of the 10 that have closed is $896K and 331 DOM.  MLS #572874.

MAJOR PRICE REDUCTION - 16581 JOHN ROWLAND TRAIL - MILL POND COMMONS - PAYNTER'S MILL

This Berkeley model Beazer Home has been reduced for the first time since it was listed almost 600 days ago.  It originally listed for $557,700 and has now been reduced to $499K.  One more reduction like that and it will be market priced.  I know this Seller has put a lot of upgrades into this home and it shows beautifully but unfortunately the market has taken most upgrades out of consideration and they become only "tie breakers".  The good news is that this is the only Berkeley up for sale right now, the others have dropped out.  The one next to it was listed at $499,900 for some time.  We now have a new competitor in Mill Pond Commons and that is the developer/builder Schell Bros. who are featuring a very nice model for a base price of $309,900.  I own a Berkeley in Paynter's Mill with quite a few upgrades.  I recently re-financed and the appraisal came in at $420K.  I paid $450K in 2005 and have put $40K plus into it.  :-(   MLS #557253

CLOSED!!! - 1102 MILLER'S LANDING - PAYNTER'S MILL

This Crepe Myrtle model closed on Sept. 25th for $223K.  It was a Builder unit not a re-sale.  It was originally listed for $304,900 way, way back.  The Crepe Myrtle is a two bedroom, first floor unit.  There are three Builder units left, two Crepe Myrtles and a Sawtooth.  There have now been two Crepes closed this year, a re-sale for $225K and this one.  There has also been one Sawtooth close this year for $214,900.  There are two units currently under contract so I would expect them to close soon.  MLS #519497

MILL POND COMMONS - PAYNTER'S MILL ACTIVITY THIS PAST WEEK.....

16563 Howard Millman Lane - This 3 bedroom Twin Home by Beazer is listed by Ocean Atlantic Sothebys and has just been reducedagain to $339,900.  It has been listed a couple of times and was once a "for sale by owner" property.  It originally listed back on February 8, 2007 for $399K and was withdrawn for a few months at the end of that year.  Cumulative DOM are 884.  There are two other 3 bedroom Twin Homes currently listed, one is a "short sale" listed for $270K and the other one is listed for $335K.  There is one 4 bedroom Twin listed for $305K.  The last Twin Home to sell in here was a "short sale" and sold for $268K back on 10/29/08.  MLS #561990

  16273 John Rowland Trail - NEW LISTING- Now this gets a little complicated so pay attention.  This is a "Columbus Model" home built by Schell Bros.  As most of you probably know, Beazer Homes pulled out of Paynter's Mill a while back and left Schell Bros. (the developers of Paynter's Mill) with 4 un-built lots at the Northwest end of the community.  Schell Bros. is trying to put one of their homes on these sites and trying to keep them as close as they can to the design of the Beazer Homes.  This model is one from their Heritage Creek community in Milton.  Their plan is to build 3 of these on 3 of the 4 lots left in Paynter's Mill.  The base price they are currently showing is $309,900, comfortably upgraded you would be looking at around $350K.  It is a nice floor plan and a reasonably good price.  It is being listed by Ocean Atlantic which is the Realty arm of Schell Bros.  They are showing two listings in the MLS at this time, this one and one on lot 94.  MLS #s are 572808 and 572782 respectively.

COUNTRY CLUB ESTATES - REHOBOTH BEACH - STILL CATCHING UP

  Lingo has re-listed this home at 111 Scarborough after taking it off the market back in June.  It had been on the market for over 700 days at that time.  It originally listed back in March of 2007 for $1,375K and is now listed for $1,095K.  MLS #572794

  Coldwell Banker Resort Realty just lowered the price of this home at 314 Country Club Drive to $775K, down from $799K.  It has only been on the market for 53 days.  MLS #571482

There was a new listing in Country Club Estates and no picture has been posted to date.  230 State Road was just listed by Jack Lingo Realtors for $567K.  This brings the number up to 7 active listings with an average price of $765K and the average DOM, 394.  One is under contract and 8 have closed so far this year.  MLS #572639