It’s hard to believe but its AUGUST! It’s been a hot summer in many ways – not just the 90 degree unrelenting temperatures. Beaches are full – but safely. Restaurants are busy (try getting a reservation without notice) and stores are seeing lots of traffic – safely but busy. And we expect this to go right into September if not later.
August means different things to us this year. With children not returning to in-class learning and parents working remotely, many second home owners are making different plans for the coming months. Vacationers are looking to extend rentals into the September/October time frame. No need to rush home and buy school clothes and supplies this year. From kindergarten to college seniors everyone has different plans for August.
Local businesses are reevaluating how they will treat the Indian summer season hoping to recapture some of the lost revenue caused from late openings this season. Our local schools are finding registrations for the 2020 school year increasing.
The Seven Mile Island real estate market continues to be explosive. With 25% fewer available single homes compared to 2019 as we began the month of July and 15% fewer townhome/condos we managed to exceed the sales of 2019 by 139%!!! Single homes saw an increase of OVER 123% and condo/townhomes saw an increase of +150%. Avalon had an overall increase of +141% while Stone Harbor saw an increase in units sold of +163%. Days on market have decreased by 25% while average price for the month increased an incredible +195% due to the heavy volume in the upper end market.
The numbers are staggering – TWO oceanfront single home sales over $10.0 million in Avalon. ONE in Stone Harbor with multiple offers listed at $5.7 where a new home will be built. TWO single home sales in the Avalon high dunes listed for $8.6/$8.5 both under contract leading the way for new construction in the future. In July 2019 Avalon saw two oceanfront sales – highest price $7.3.
The bay activity has carried right into July with 7 single sales in Avalon -$6.4 highest price there and one new construction in Stone Harbor listed for $6.7. This bay interest has carried right into Avalon and Stone Harbor Manor with an increase in sales of single homes in both communities. In July 2019 Avalon had no Bayfront sales while Stone Harbor had 3 with $4.450 the highest price for new construction.
Beach block sales in Avalon stood at 4 with highest list price at $6,250,000 while Stone Harbor saw a new construction sale listed at $4.5. – In 2019 the highest beach block sale in July was $4.0 in Avalon.
The investor/developer continues to be aggressive in this market as well. New construction values one block to the beach are trading in the $3.3+ range in both communities. Small homes are being scooped up by the investor for new construction opportunities in all locations.
As we closed the month of July, 11 homes are available under $2.0 million. This market segment is one with the most interest and least amount of homes to purchase. Our second most sought after price point of $2.0-$2,999,000 has only 28 homes available island wide. Our most sought after location –the bay- offers only 15 single homes available island wide, 5 of which are new construction while the beach block location offers 17.
In the condo/townhome market almost 1/3 of the available properties are of the one bedroom resort motel type. One of the most popular property style/locations is the Bayfront townhome in Avalon with only 4 available- 3 of which are new construction in the $2.3 range. In both communities we are in need of new fresh inventory for the pent up demand we are seeing.
The continued record low interest rates combined with the increasing interest from people anxious to divest their financial interests into a second home to escape continues to feed the pace of this market. If you are a seller NOW is the time. I have knowledge, expertise and buyers to help you attain your goal. If you are a buyer NOW is the time to connect with me so that I can be your eyes and ears in this fast pace market. You will only succeed with a trained professional working in your interests.
If I can be of any assistance, please give me a call at (609) 967-0289 or email me today.
Looking forward to seeing you soon.
All the best,
Holly C. Rennie