Housing market collapse: Recovery for condo-townhouse properties?

No doubt there has generally been good news over the past few years on the status of the residential real estate market. However, some question if we have recovered from the recession, our collapsed real estate market? If not, when will we fully recover? The objective of this article is to provide answers to these questions.

This analysis addresses only condo-townhouse properties located in Coastal Delaware's real estate market with one of the following ZIP codes: 19930 Bethany Beach, 19944 Fenwick Island, 19945 Frankford, 19958 Lewes, 19966 Millsboro, 19967 Millville, 19968 Milton, 19970 Ocean View, 19971 Rehoboth Beach, or 19975 Selbyville. Analysis covers 17 years. Actual numbers provided for 2005 thru 20017. Projected numbers provided for 2018 thru 2021. For each of these years, three key market measures were analyzed: number sold; average days on market and average sold price.

Reference Table:  Best market numbers in bold shown for Peak Period and Recovery Period - Projected. Worst numbers in bold shown for Recession Period.

Number Sold - 2005 remains the peak year for the number of condo-townhouse properties sold at 1,402. The number sold in 2009 was the worst year, with only 518 sold. 2017 was 201 or 14 percent less than peak year. I expect within 1.5 years, we will reach a new record high for number condos-townhouses sold.

Average Days on Market - 2005 still remains the best/shortest time to sell a home at only 120 average DOM. The worst/longest period of time to sell a condo-townhouse was in 2010 at 264 average DOM. 2017 average DOM at 136 days is only 13 percent slower than 2005 record low. I expect within one year, we will reach a new low average DOM.

Average Prices - 2007 is the peak year for the best, highest average sold price at $405,730. The $307,261 average sold price in 2012 represents the worst, lowest average sold price during the past 13 years. 2017 average sold price is $74,380 or 18 percent lower than 2007 peak price. I believe it will take four years to equal or surpass the peak, high average sold price.

To conclude, since 2014 our Coastal Delaware real estate market for condo-townhouse properties has generally shown moderate improvements, which are expected to continue. However, stats for the three key market measurements show the condo-townhouse market has not caught up with the best, peak market years. Therefore, the Coastal Delaware condo-townhouse market has not recovered from the great housing recession. Full economic recovery from the condo-townhouse recession is not expected for nearly five years, likely 1.5 years for number sold and average days on market, and four years for average sold prices.

NOTE: All above data was compiled from Matrix Multiple Listing Service System, and is subject to change without notice, may not reflect all real estate transactions, considered accurate but not guaranteed, and does not constitute an opinion of nor is data accuracy responsibility of any association or its members. Analysis is for informational purposes, should not be used or construed as investment advice or recommendation regarding the purchase or sale of any properties.

Kent H. Hannaman is a sales analyst with Ocean Atlantic Sotheby's International Realty. For more information call 302-227-6767.