That’s one of the questions on everyone’s mind these days and I hear it at the gym, at the Chamber of Commerce meetings and when we go out to dinner or a movie. “How’s the market, Kathy?” I yell right back “Great! The real estate market is doing great!” And it really is. This time last year we weren’t sure just how 2009 would turn out. Late spring we noticed things picking up and by September, we were crushed.

I just took a look at the overall numbers for all of 19958, the Lewes zip code, and here’s what I found:

At least 234 single family homes were sold and settled. It’s possible that more were settled and just not available in the system yet. More may have gone under contract but not yet made it to the settlement table.

Homes sold in the historic district, in Lewes Beach and Cape Shores, in Pilottown Village and the many newer subdividions in and around town. The Lewes zip code goes halfway out Route 24 until you hit the Long Neck area; then it becomes a Millsboro address.

According to the Multiple Listing Service (MLS), at the high end of the market, 6 homes sold for over $1Million. Another 34 homes sold between $500,000 and $1 Million. Most of the sales activity was under $500,000, and the largest number of homes sold - 139 - sold below $350,000. In fact, the average sale price of all homes sold in Sussex County in 2009 was $341,639, down from $378,414 in 2008. Inventory is down however over 7%.

So, what does this mean? Prices have come down, sales are increasing and inventory (of homes for sale) is decreasing. Sounds like a good time to buy.

This roving photographer drove through some communities in and around Lewes, camera in hand, and look what I found! Signs of new homes being built where there was only dirt for months on end. The good news is I hear that they are building because of sales, not building to inventory like the days of old.

The builder and real estate agents that kept working and doing things right are here now and ready to rock and roll!

Remember, all real estate is local, very local.

The recent real estate market has been tough on lots of home builders and the biggest issue for the survivors just might be the decision to build to inventory or build only to sales. In Lewes, Delaware, there are very few inventory homes for sale, but we just got word about some excellent opportunities.

The builder’s concern? You will finally sell your existing home and be ready to buy BUT they won’t be able to have a home ready in time. What you want is to settle on your home sale and move right into your new home the very next day. The builder wants to be ready so he builds a few of the most popular models without a sales contract. Sometimes he guesses wrong and that’s when the deals get attractive.

The offers change rapidly and yet the best deals generally fall into one of two categories:

1. Inventory Homes – the result of a builder getting too far ahead of the market. The longer they sit, the better the deal. Most builders are only building to sales these days but there are occasional inventory homes for sale at a really great price. Price reductions of $50,000 – $70,000 are not uncommon. Contact us for details.
2. The Next Buyer – or what I like to call the “one deal at a time” specials. Until a builder feels that the traffic and sales are where they should be, they will offer a special deal that helps them as well. For example, if there is one lot left on the main steet, that might be the “Special” deal. Not the lot in the back of Phase II, but this one he wants to build on next.

Some deals are not really new deals at all. Some builders have so many special offers in their advertising and marketing but they all boil down to the same thing. You need to know what works for you and you need to be represented by a knowledgeable Buyer Agent who knows what the real deals are and how to negotiate on your behalf. If you are ready and able to buy, we know how to ask the right questions and how to evaluate the different offers.

Homeowners, Guests, Realtors – over 200 of us – had a great evening with funny money at Nassau Grove Saturday, March 14th. Several clients of mine who have bought homes at Nassau Grove recently were right in the thick of the crowd at the blackjack table. You can see the back of my head there at the crab table. I’m so glad it wasn’t real money or I would be at the Soup Kitchen today!

Ask  me if Nassau Grove might be the right community for your future life here in Lewes, Delaware.

The new Phase now under construction by Blenheim Homes at Bay Crossing is moving along and there are three models open. Nestled against a dense tree line in the back of the community, the new homes with full basements are very appealing to many of our clients. Each home is available as either a single level or a two story home. This is a very popular active adult community with a Lewes address in a great location East of Route One. The clubhouse, pool and tennis court are already open and bustling with activity every time I visit with my buyer clients.

Lewes, Delaware, is called the “First Town in the First State”. It’s a beach town and a year round town where the locals live in town, patronize the shops and restaurants in town and participate in everything that is Lewes. It is pronounced like the name Louis and it’s the other end of the Cape May/Lewes Ferry that brings visitors from New York and New Jersey to Delaware.

I hope you will visit our blog and visit us in Lewes. It’s a great place to live.