| Rehoboth Beach Delaware is called the Nation's | | | | Delaware and Pennsylvania. The bedrooms for |
| Summer Capital because we are such a common | | | | those who run our national capital reach out a |
| second home and entertainment location for the | | | | hundred miles from the center of town. CSW is |
| powerful and influential people of Washington D.C. | | | | not predicting the 20% annual real estate |
| There are few people making over $75,000 a | | | | property value increases of the last few years |
| year in the DC professions who do not frequent | | | | but they are predicting a 4.2 % annual increase |
| this area when they need privacy, space, fresh | | | | for the DC related area now instead of the 3.8 % |
| ocean air and relaxation. It's not just summer that | | | | increase they predicted before the horrors and |
| draws them anymore, they come year 'round. | | | | attacks of 9-11. They are predicting downturns in |
| And it's not just Rehoboth Beach anymore, they | | | | values elsewhere and deeper downturns than |
| populate Lewes, Dewey Beach, Bethany Beach, | | | | before in all the other major markets.CSW |
| Fenwick Island and all the little towns near the | | | | acknowledges that tourism to DC will be hurt |
| Delaware Beaches.During the past several years | | | | some by the attacks. Personally I know that |
| all real estate, especially waterfront real estate or | | | | Crystal City has increased traffic of late by |
| beach real estate anywhere has been a | | | | sightseers who have recently come to DC and |
| phenomenal investment. Rehoboth area increases | | | | want to view the destruction of part of the |
| have been as much as 30-40% per year in the | | | | Pentagon. Additionally, room rentals are only |
| ocean block for the last few years! Part of this | | | | slightly hurt in the Washington D. C. area as |
| surge was just a catch-up from nearly a decade | | | | tourists normally in DC for the fall events have |
| of relatively flat appreciation rates.While | | | | been partially replaced by consultants and visiting |
| Washington D.C., along with numerous other cities | | | | dignitaries. Along with the upgraded appreciation |
| has seen price increases in real estate of 15-30% | | | | predictions for the DC area real estate market |
| per year over the last few years. While the rest | | | | CSW has farther downgraded it's prediction for |
| of the country has little if any appreciation in real | | | | appreciation rates in Atlanta, Boston, Chicago, |
| estate values this year DC has remained hot, | | | | Cleveland, Denver, Detroit, Los Angeles, Miami, |
| though not as hot as last year. Most areas of our | | | | Minneapolis, Nashville, New York, Orlando, |
| country have had no appreciation in prices on | | | | Philadelphia, Phoenix, Portland, San Diego, San |
| average for this year - except for small portions | | | | Francisco, and Seattle.Here are my personal |
| of some metropolitan areas.The entire economy | | | | predictions, based on over thirty years of selling |
| has cooled way down. Globally, real estate is not | | | | property here in the Delaware resort areas. I also |
| expected to do very well over the next few | | | | maintain an almost daily connection to the goings |
| years. In addition to residential real estate being | | | | on of the DC real estate markets. Washington DC |
| hard hit -- retail, commercial and industrial real | | | | will experience an influx of highly paid professionals |
| estate has been mostly languishing, unsold even at | | | | for the defense and research industries as well as |
| lower prices and even with commercial mortgage | | | | computer security, personal security and warfare |
| rates of half what they were a few years | | | | related services.There will also be a terrific |
| ago.This Delaware Resort area and Washington | | | | increase in any and all Internet related firms that |
| D.C. are predictably different from anywhere else. | | | | service the staff of our government and |
| DC is where people flock when any national | | | | government contractors who will fight the new |
| emergency or military expansion is underway. We | | | | war. Much of this war will be fought with |
| are seeing unprecedented buildups in military, | | | | keyboard, mouse and joystick. These new hi-tech |
| government and private sectors as a result of | | | | workers and the ones already involved will be |
| our instant reaction to the attacks and the nearly | | | | under increased stress and accepting increased |
| immediate national decision to mount a world wide | | | | pay over the next few years as we fight a |
| high-tech war against the terrorists and their allies. | | | | high-tech war against terrorism. These same |
| This Delaware Beach area is a part time | | | | factors and more will give increased reasons and |
| bedroom, escape, business-meeting and bar | | | | funds for more people to visit our beach areas. |
| community for the Washingtonian influential and | | | | As always some of these visitors will decide to |
| powerful elite. Here they can get away and plan in | | | | purchase here. The visitors and new buyers bring |
| private for what must be done!The Wall Street | | | | others with them and more of these visits are |
| Journal posted an interesting article "Where | | | | business related now.Washington DC firms and |
| Housing is Headed in Wake of Attacks" on 09/21 | | | | companies that are financially related to these |
| 2001 by June Fletcher and Danielle Reed regarding | | | | firms will rapidly be adding highly paid staff and |
| the future of real estate -after the attacks. | | | | subcontractors. This will require a huge increase in |
| Before the attacks Real Estate sales were the | | | | every kind of service industry as well as all the |
| major factor keeping the rest of the economy | | | | hospitality industry relatives. The more highly paid |
| from plummeting more terribly than it has. The | | | | and more highly stressed war related workers will |
| attacks have badly shocked the world real estate | | | | predictably seek vacation time, relaxation time |
| market. The residential, commercial, industrial and | | | | and close by meeting sites in Rehoboth, Dewey, |
| even the government acquisition of property in | | | | Bethany, Fenwick and Lewes just as they always |
| the major cities has lagged or stopped almost | | | | have. More and more of these highly paid folks will |
| everywhere. No one knows how long this will last | | | | also need to visit us more often, for longer |
| of course.Since the New York, D. C. Pentagon, | | | | periods, and increasingly throughout the year for |
| and Pennsylvania attacks on the World Trade | | | | myriad reasons. Many of them will move here and |
| Center, The Pentagon and the attempts on The | | | | begin to work here from phones, fax, laptops and |
| White House; we have reason to review many | | | | home computers. We are seeing it happen |
| things. General real estate markets world wide | | | | already. We, as a result, will need to have more |
| have been drastically affected since the war | | | | and more of our resort infrastructure and more |
| began -- and the war may last a long time. Part if | | | | of our businesses open, year 'round. We will need |
| not most of the instant real estate market | | | | to employ more and better trained people in |
| change was due to the banking industry which | | | | every area here and they too will need housing |
| was one of the most severely affected of all US | | | | and services. We are growing!We will see an |
| business. Many of the offices in New York that | | | | every increasing growth rate for those who |
| were destroyed were central banking centers | | | | telecommute from here at the beach - part or full |
| from around the world. We are beginning to | | | | time. Already I see a large percentage of our |
| recover from the banking difficulties now. In fact | | | | prospective customers and buyers that are now |
| our in-house mortgage broker Prosperity | | | | or soon will be working from home. Those who |
| Mortgage which uses Wells Fargo funding is up | | | | spend long weekends here in the beach area with |
| and running full speed, no problems. We have the | | | | a laptop and cell phone to handle professional |
| lowest residential mortgage rates in 40 years | | | | responsibilities are an ever increasing group. Kate |
| right now. But full technical recovery of the | | | | and I work from home most of the time. Our |
| banking industry will take a while.The real estate | | | | waterfront neighbor is a mortgage broker and is |
| market of Washington DC, our feeder | | | | often on her balcony with her laptop and phones |
| community, remains strongest in the nation. | | | | doing business. Kate often does a full day's work |
| According to Case, Shiller and Weiss known as | | | | out at the end of our pier. We are home workers |
| CSW; and claimed by the New York Times to be | | | | and every month more of our customers are as |
| the leading residential real estate analysts in the | | | | well. Several of our recent purchasers work at |
| world; we are heading deeper into a declining real | | | | home full or part time.As a result of all these |
| estate market for this country and others, the | | | | property appreciating factors; I wonder if our |
| exception being Washington D.C. CSW is predicting | | | | Delaware Beach Area and Rehoboth Beach real |
| DC to appreciate and to increase in appreciation | | | | estate will actually outstrip the appreciation of DC |
| more than previously predicted. This prediction, of | | | | real estate once again.By Copyright September |
| course, includes the residential areas around | | | | 22, 2001Jody Hudson is a Realtor with 35 years |
| Metropolitan Washington D.C. such as Northern | | | | experience in American and Delaware Real Estate. |
| Virginia, Maryland and to a lesser degree parts of | | | | |