Saturday, July 4, 2020 / by Jay Lesko
We are seeing a surge of buyers from highly populated areas like New York and New Jersey. COVID-19 has come up in quite a few of our initial buyer consultations. Add this to pent up demand when Delaware had a 14-day out of state quarantine requirement along with a short-term rental ban that deterred not only visitors to the state, but active buyers as well. Then June 5th arrived and the state opened its doors and the surge of buyers appeared.
The market has shifted drastically to a sellers market, but that doesn't necessarily mean that ever home in every community is moving. Pricing remains a key variable and if a listing is overpriced, the process of substitution sets in; where buyers realize they can find a similar home for less.
One of the most dynamic indicators is tracking the number of homes that went "Pending" in our MLS. Below is a breakdown of the new pendings across the beach markets. The number of homes that went under contract last month broke the 5-year average for all markets. Once again, this is likely due to pent up demand that could not enter the market due to state restrictions during COVID-19. Couple that with already low inventory (26.3% less than last year) along with a number of listings coming off the market due to COVID-19 due to sellers being concerned about the risk of transmission and you have the makings for a highly competitive market for buyers.
We are here to assist you in whatever way we can. Please don't hesitate to reach out to us for more market details or if you are interested in purchasing or selling a home here in Coastal Delaware and Maryland.