2011 - END OF YEAR REPORT - NORTH REHOBOTH BEACH

Like so  many other communities in and around the beach areas, North Rehoboth saw a resurgence of activity in Q4 of 2011.  Higher end properties started to move hinting that investors are coming back into the market to pick up some bargains.  Lot sales have been brisk as prices have come down so much that it makes sense to buy lots and custom build.  Anecdotal evidence indicates that many custom home builders are booked out through 2013.  That's good news.  I believe if you're a Buyer still waiting for the bottom, you may have missed it.  Having said that, North Rehoboth had 15 Single Family Home closings in 2011.  This does not include North Shores or Henlopen Acres.  Of those 15, 6 of them settled in Q4 and 3 others went under contract.  The average selling price of a SFH in NR was only $919,767 which seems incredible to me as 4 or 5 years back you couldn't find anything in town for under $1MM.  Sellers had properties on the market for an average of 330 days in order to get sales and they got an average of 71% of their original asking price.  The highest priced sale came at the very end, 5 E. Third Street sold for $1,350,000.  The lowest priced sale was 141 Henlopen Avenue at $650K.  There were a total of 5 homes that sold in the $600K range.  I show that two of the properties sold in 2011 were "distressed" one being the aforementioned 141 Henlopen Avenue which was a "short sale" and then there was the Sea Witch Bed & Breakfast that went into foreclosure before selling in November for 49% of it's original asking price.  As I mentioned, 3 homes remained under contract waiting to close at the end of December.  5 others withdrew from the market in Q4 and 6 more came on the market leaving a total of 38 active listings on December 31st.  The average listing price at that time was $2,619,000 and 439 days on market.  The momentum is definitely moving in the right direction.  Buyers, better hurry.