There has been much speculation, as well as anticipation, about COVID-19’s effect on the luxury real estate market. Those invested in this marketplace have been eagerly awaiting our April figures and statistics to assess the current situation.
In early April, some real estate experts projected a 30-40% decrease in inventory and, with the vast majority of the US and Canada receiving ‘stay at home’ orders, it seemed that the number of sales would drop significantly. However, it seems instead that the luxury real estate market hit “pause” rather than the panic button.
Taking a deeper dive into the statistics for local markets we see there has been on average a 20-25% drop in the number of sales compared to the same period in 2019, but expectations are that we will probably see a surge of buying once the virus lockdowns are lifted; with many predicting this activity to begin as soon as early summer.
As Ocean City and the Eastern Shore continue to reopen, the luxury market is expected to surge as the area begins to experience a new reinvigoration of tourists, new homeowners, and vacationers. Now is the perfect time to purchase a vacation home, secondary home, or new property on the beach.
A new listing that has become available is 2 Dorchester St #603, located in the heart of downtown Ocean City. This property offers a direct oceanfront location with excellent rental income potential. With fabulous views of the Ocean City Fishing Pier, Ocean City Inlet, Assateague Island, the Atlantic Ocean and the Bay, it offers the best of all the beach has to offer.
You will enjoy luxury living with an open floor plan, 9-foot ceilings, gas fireplace, granite countertops, designer kitchen and wet bar. Relax in the ocean front master bedroom with balcony.
This fully furnished condo has an excellent rental income of $52,000 plus. Amenities include a rooftop pol, putting green, fitness center and sauna.
Worcester County Luxury Market In Review
Single-Family Luxury Market
- The Worcester County single-family luxury market is a buyer’s market with a 9% sales ratio
- Homes sold for a median of 95.36% of list price in April 2020
- The most active price band is $1,150,000-$1,249,999, where the sales ratio is 100%
- The median luxury sales price for single-family homes has increased to $1,222,500
- The median days on the market for April 2020 was 97 days, down from 127 days in March 2020
Attached Home Luxury Market
- The Worcester County attached luxury market is a buyer’s market with a 9% sales ratio
- Homes sold for a median of 95.97% of list price in April 2020
- The most active price bands are $700,000-$749,999 and $850,000-$899,999, where the sales ratio is 20%
- The median luxury sales price for attached homes has increased to $702,500
- The median days on market for April 2020 was 74 days, down from 80 in March 2020
The full report can be found below. For more information about the May 2020 Luxury Market report and the services I can offer you and your luxury property, please give me a call at 410.430.1575 or email me at mnichols@LuxuryShoreLiving.com.