Why RIGHT NOW is the Best Time to Sell
There is not other way to say it ... the real estate markets in Ocean City and the surrounding areas are on fire! Most properties are selling within a couple of days of being listed, for over asking price with multiple offers. If you are considering selling your Ocean City real estate, now is the most opportune time in well over a decade. Below are several reasons why.
Demand Is Strong
Buyer demand is currently very strong in the Ocean City, Ocean Pines, West Ocean City and Berlin real estate markets. This is being fueled by low interest rates, pent-up demand and limited inventory. Due to COVID-19 there has been a noticeable shift in focus to "home". In the primary home market, Buyers are spending a considerable amount more time at home and in-turn willing to invest in more space, features and amenities. In the secondary market, Buyers have acknowledged they won't be going to Disney or getting on airplanes or cruise ships for the foreseeable future. Instead, they are buying second homes that are easy to get to and provide a controlled environment.
Inventory Is Low
Real estate inventory throughout the Ocean City area is at its lowest levels in well over a decade. This is happening just as Buyer demand is at an all-time high. As a result of these two factors, properly priced homes in good condition are selling within a couple of days, typically with multiple offers. This demand for homes is intersecting with a trend among homeowners to hold on to their homes for longer than usual. Sellers are currently in a position that may only come around once in a generation. Getting in on the action and listing your home for sale now is a wise move before more and more homeowners catch-on and enter the market.
Prices Are increasing
The average sold price in Ocean City is up by 3% over 2019 and rising. The limited inventory and strong Buyer demand referenced earlier have led to this increase. Multiple offers on properties lead to a lot of listings selling for over the asking price. Nobody would have predicted this back in March at the start of the COVID-19 crisis, but they also didn't predict the shift to the focus on "home" either. These price increases will continue until there is a considerable increase in inventory.
Buying Habits Have Changed
The implications of COVID-19 have made less populated areas more attractive than ever. What's more, the sharp increase in people working remotely means that many who were attached to cities due to their careers are suddenly looking to spread out into areas away from the congestion. There is a very high likelihood that we are looking at a permanent transition to a flexible, work-from-home economy for millions of Americans. Those workers have shown a clear desire to pursue real estate in the Ocean City, MD area.
Mortgage Rates Are Enticing Buyers
Mortgage rates are at an all-time low, with some Buyers securing rates below 3% for 30 year fixed mortgages, which is almost unbelievable. These low rates won't last. Buyers know that and as a result are trying to make purchases as fast as possible. This is a huge opportunity for Seller's to take advantage of. These low interest rates are going to be doing a large part of the selling for you if you list your home in 2020. If you are not considering selling it is also an opportune time to refinance your current mortgage to a lower rate.
Due to the amount of competition in the market Buyers are limiting the number of contingencies they include in their offers. In a lot if instances Buyers are removing inspection contingencies, shortening up closing timeframes and not asking for assistance in their offers to make them more attractive to the Seller. Removal of these contingencies makes for smoother real estate transactions and more money for the Seller.
The Economy Will Likely Be Back
Most people are making home-buying decisions with an optimistic view that the economy is bouncing back. We're already seeing that the numbers look a lot better than they did in March now that more people are getting back to work. Realistically, it will be a long road back. Those who are keeping an eye on the prize realize that many new opportunities could be on the horizon as companies and individuals get creative about how to move forward. Many see locking in a low-interest rate on a property in a desirable area as being the top financial move they can make in 2020.
Should 2020 Be the Year You Sell?
As you can see, there is currently a lot of opportunity for Sellers in the Ocean City real estate market. If you would like to discuss your options in greater detail or have me prepare a market valuation for your property, feel free to contact me directly anytime at 443-614-9179.