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