For the first time in 35 years, it is expected that Ocean City Maryland's property values will fall by as much as 15%, when the Worcester County Assessment and Taxation office completes its tri-annual assessment this October. At first glance, this seams like a very negative headline but the reality is that we in Ocean City just like many parts of the country are experiencing a correction in the market place. If you compare current 2008 values to that of 2001 property values, we are close to 130% higher. Statistics from the National Associatation of Realtors also show that on average a homes value nearly doubles every 10 years, which has been the case since World War II. So is Real Estate a great investment? Absolutely!
This brings me back to my original Question, is there an Unseen Benefit in the falling property values for both sellers and buyers? Yes for the first time in possibly 35 years, Ocean City residents could see a decrease in their new tax bill! The relief may be temporary, but also if the investment is long term, history has proven that the value will go up, once again building equity! Now for the buyers, Buyers what are you waiting for? Current vacation home pricing is at the level seen before the last run up in prices, which in some cases is 40% less than the peak in 2005. Combine the value with an increase in demand for condominium rentals as apposed to hotel room rentals only strengthens the investment! Have we reached the bottom? It is hard to say, but typically, the only way to know for sure is when demand and prices start going up! Then its to late!!
For complete 2008 sales statistics provided by the Coastal Association of Realtors visit http://www.RyanHaley.com
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