The number of residential properties - single family homes, condos and multi-family buildings - sold in Ocean City is up almost 34% in the first four months of 2011 compared with the previous year. Add to this the anecdotal contributions of a number of realtors who say that they are very busy with buyers who are actively looking but not in a rush to make a purchase, and it could mean a very strong year for seashore sales.
The dollar volume of sold properties increased by a slightly greater percentage from $90,882,275 to $123,614,374. This 36% increase does not appear to be related to the mix of properties sold or to significant changes in average sold price in any given category, but is instead an across-the-board increase in sales with stable pricing.
In case you were debating whether it was time to start buying, the answer is that others have already jumped in and you are a little late. There are still about 1,000 residential properties for sale in town, but if you have your heart set on a particular location, type of property or price range, it is time to contact a realtor and start searching. You may find yourself waiting for the right property to hit the market.
So where are the bargains? The best deals to be had are on the beachfront and on the lagoons and open bay, where inventories remain high and sales are sluggish at best. Buyers who are willing to work hard with an agent, submitting offers and moving on if they don't like the response, can occasionally uncover a good deal. Those who want to see a free-fall in pricing in choice locations will have a long wait, however, because too many owners are in strong equity positions and are apparently willing to wait things out.
Single family homes, especially newer ones near the beach in the $1 million market, are being snatched up, and much of the aged inventory has been cleared out. Agents check in with each other with their wish lists, trying to find properties for their buyers before or when they hit the market.
None of this has yet translated into significant upward price pressure, because buyers have had lots of time to study the market, are aware that those who bought in 2005-2007 may be in negative equity positions, and are determined not to over-pay. This sometimes translates into a hostile buyer - hostile seller situation, where both parties think they are on the losing end. Smart buyers and sellers let go of the past, and focus on today in trying to make a deal come together.
Check back for more updates as I do a more in-depth analysis of our market.