4 months ago
OCEAN CITY, Md. (WUSA) -- There are tentative signs that the crash in beach real estate may be bottoming out as the summer selling season ramps up with the Memorial Day weekend.
"Its hard to predict that we've found the bottom because I'm sure there are more bank sales to come," says Chris Jett of Vantage Resort Realty of Maryland in Ocean City. "But it looks like were beginning to stabilize."
The number of properties sold in the first in the first 3 months of 2010 is up 20% over the same period last year and the inventory of condos on the market is dropping, according to figures from the Coastal Association of REALTORS.
There were 180 deals made in the first quarter of 2009 compared to 216 properties sold during the same period this year.
The median price has dropped to $275,000.
To see how far prices have fallen, a visit to the Sunset Island development on the bayside of the beach resort is instructive.
One luxury town home was recently liquidated by a bank for $450,000. It sold in 2005 for $715,000. Its a crash of nearly 40%.
There are many more modest condos on the market now listed for less than $150,000.
Buyers are typically people who were "on the sidelines" for the real estate boom, and who view a beach condo as a cherished place for family weekends and vacations, rather than as an investment for rental income.
"They see they have an opportunity to take advantage of the market to get something they have always wanted," Jett said.
Low interest rates are also fueling sales.
Written by Scott Broom
9NEWS NOW & wusa9.com
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