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