Listing Courtesy of OCEAN ATLANTIC SOTHEBY'S INTL REALTY
Good investors tend to be cautious souls. For those who prior to 2007 had never ventured into the realm of Rehoboth Beach real estate investments, the ensuing downturn might have been enough to discourage any curiosity about that direction (even if their other investments had also suffered during the global financial crisis).
Nonetheless, at this juncture those same cautious investors might well assume that the value of real estate investments in the Rehoboth Beach area have rebounded so substantially that it’s now too late to bother looking into them. But as National Public Radio has just pointed out, there's an excellent argument to be made that conditions are now highly conducive for real estate—with real estate investments in Rehoboth Beach being no exception. I could tick off three solid reasons that immediately leap to mind, but stand corrected: NPR points to four:
1. Employment. Employers are hiring anew, and "when companies are hiring, would-be homebuyers feel more confident about taking on mortgage debt." Unemployment rates have (finally!) come down to 5.6%, and with employers having added 252,000 jobs in December, consumer confidence is up nearly 20% over a year ago.
2. Prices seem more rational. NPR points out that from January to October, prices rose 4.5% nationally; a "subdued" gain compared with the 11% burst of the year before. They project that the slower price appreciation may have set the stage for a "buying surge in 2015." From a Rehoboth Beachreal estate investments standpoint, too, gains from last year’s run-up in equities markets combined with mortgage rates still holding below 4% would seem to create the key elements many investors would consider favorably.
3. Demand for rentals is high. There is a healthy demand for rental accommodation across the country due to a tight supply of quality accommodations. USA Today tells us that between 2009 and 2013, the national vacancy rate for apartments dropped from 8% to 4.1%. Over the same period, the effective rent increased by 12% to $1,083. As one potential consequence vis-à-vis Rehoboth Beach real estate investments, new landlords might expect to be more selective about the tenants that they choose. That would mean fewer headaches for landlords with troublesome and slow paying tenants. It is might also portend that investment properties will stand vacant for briefer periods.
4. Millennials are sick of Mom’s basement. NPR points to a Census Bureau report that says only 36% of Americans under age 35 own a home, down from 42% just seven years ago. The recovering employment picture might not enable young people to save up for a down payment for a while yet, but renting quality digs should soon be more doable than was previously the case. That could set the table for a continuing robust rental environment, with Rehoboth Beach real estate investments benefitting proportionately.
NPR’s four reasons for optimism in 2015 are actually only the tip of the iceberg. If you have ever had the thought that it could be worthwhile to take a look at Rehoboth Beach real estate investments, this is a great time of year to give me a call!
As summer approaches, Delaware homeowners may also recall the challenge of retaining a reasonably comfortable home environment during the inevitable spells of hot weather. Everyone has a different relationship to heat and its evil twin, humidity, which dictates how much attention and budget needs to be dedicated to house cooling.
One old-fashioned solution is out there that many Delawareites may not have considered.
For most heat-sensitive Delaware residents, house cooling is synonymous with some form of air conditioning—if not central, then some assemblage of window A/C units. Evaporative coolers have economic and environmental advantages, but are really most effective in dry conditions: in other words, when the air gets soupy, their effectiveness fades. These were the “swamp coolers” of yesteryear—and they do have plusses that keep them around today. They allow open windows, so unlike air conditioners, fresh air is part of the house cooling action. They also use relatively little energy.
Swamp coolers used to be more popular in pre-air conditioner days—but there’s another cooling solution that is sometimes overlooked today. It’s the “Whole House Fan” system.
The basic idea is to fight the buildup of heat inside the home by pulling air up and out of the structure, expelling heat and allowing cooler breezes to enter. The house cooling is forced by a powerful fan in the attic combined with appropriately installed ventilation ports. It’s the fan that was the culprit behind the unpopularity of yesteryear’s versions. They were called “attic fans,” and they earned an unfortunate reputation for being extremely noisy. Sounded like a helicopter was taking off on the roof. Not okay.
Today’s whole house fans are the exact opposite: engineering advances make them whisper quiet, yet powerful and effective. Because they are quiet, homeowners don’t mind leaving them on for extended periods, which maximizes their effectiveness in ridding homes of summer heat buildup. It is true that on really hot days—when the outside air, even in shaded areas, can become oppressive—air conditioning is simply more effective. But for Delaware residents who don’t mind an occasional heat spell, the savings in electricity consumption can make whole house fans a modern strategy worth considering.
Summer is also the second half of Delaware’s busiest home shopping season. Kids are out of school, and summer vacations give more families a chance to do some serious house hunting. If you have been considering a real estate move of your own, it’s not too late to join in: give me a call! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.