Local buyers find bargains as Sussex real estate market shows signs of recovery

While it has been easy to get caught up in the woes and struggles of the real estate market nationwide over the past half-decade, the numbers from 2011 are showing promise in Lower Delaware – particularly in southeastern Sussex County.

Coastal Point • R. Chris Clark
The local real estate market has seen an upwards swing in 2011. Local contractors, such as Marnie Custom Beach Homes, above, have been busy as of late.

Statistics provided by the Sussex County Association of Realtors (SCAOR) for the fourth quarter of 2011 suggest that a trend in the real estate market activity bodes well for those on the fence over a new home purchase. Recent drops in the number of individual home sales have had some Realtors slightly discouraged, but buyers are taking full advantage of the opportunity.

According to SCAOR, the total real estate sales reported in Sussex County in 2011 fell just shy of $1 billion, reaching $985,405,745, over 3,225 sales transactions. And the fourth quarter of the year witnessed a strong surge, even after the sales of single-family homes throughout the county topped $500 million in the first three quarters of the year.

“Numerous factors have been driving people to buy,” said Sandy Greene of Seacoast Realty, former president of SCAOR. “Buyers are weary of being frugal, especially with spending around the holidays. Fortunately, as people continue to look and sales are made, the market will continue to improve.”

Overall, the total value of real estate sales for last year was down 1 percent, but the 2011 numbers represented a 4 percent increase in properties sold from the previous year, particularly due to single-family home sales.

Sales of more than 2,500 single-family homes in Sussex County generated an average of $300,924 each, indicating that buyers are getting more eager to get on the hunt. In the fourth quarter alone, 40 more single-family homes were sold than the same time period in 2010, and the average price of those homes in 2011 was considerably lower. In all, the 307 more homes sold in 2011 represented a 4-percent increase over 2010.

Homebuyers have taken advantage of a small slope in prices, too, as two-bedroom homes came down in cost in 2011 by 8 percent on average, and three-bedroom homes dropped in cost by 7 percent.

This past year also saw a decrease in condo and townhouse sales, by 11 percent from the previous year, indicating a prime time for homebuyers to get on the ball. Mobile home sales for 2011 saw more sales and a decline of 17 percent in the average sale price.

Greene noted that, while sales have been picking up county-wide, the southeastern region of Sussex County, where she primarily works, had steady business through 2011.

“From my own experience,” she noted, “we’re seeing an increase in cash buyers, too. A lot of families are tired of sitting on the sidelines. Homeowners have been waiting for quite a while, and with listings where they are now, they’re taking advantage. The interest rates are much better than they’ve been, and buyers don’t want to miss the bottom of the rates in case they increase again, so they’re going after them now.”

Even lots and land are being scooped up, as the average sale price of lots and land has come down from $214,066 in 2010 to $157,449 in 2011.

“The listings that are selling the best are the ones that are priced right,” said Greene. “The winter is usually a slower time for sales, but people don’t want to waste any more time waiting. We’re even seeing lot sales improving, which had no pulse for such a long time. That’s a really good indicator that the market is picking back up.”

Similar to their residential counterparts, commercial real estate sales volume and sales saw growing activity in 2011, with an average transaction price falling in the buyers’ favor, from $555,731 in 2010 to $462,131 over the course of 2011.

As SCAOR members continue to monitor real estate activity through Sussex County, their main focus centers around three statistics: the total number of closed listings, the total selling price and the average selling price.

In a positive sign for the market, the closed listings have been on the rise for two consecutive years. In fact, 2011 sales had increased from the 2009 sales volume by 14 percent, and they were 7 percent above that year’s average sales price.

Again working in favor of the buyers, the average selling price has gone down since 2009, from $302,288 to $281,253 this past year, representing a 7 percent reduction, which sits above the national average.

The data implies that Sussex County home values did better in 2011 than many areas throughout the country. As a state, Delaware remains fifth on the 2010 United States Census Data in homeownership and home value with a homeownership rate of 72.1 percent and a median home value of $294,400.

To read more about issues related to Sussex County’s real estate industry, visit SCAOR’s Web site at www.scaor.com