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July 26, 2024

Ocean City, MD - Real Estate Market Overview 2024

Zoe Harper

Marketing

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Welcome to the dynamic world of Ocean City MD real estate. It's where the charm of the coast and great investment chances meet. This area is famous for its beautiful beaches and great vacation homes. It mixes exciting property trends with the current housing market conditions.

The real estate scene in Ocean City reflects the lively spirit of this beach area. It's perfect for both people looking for a long-term investment and those wanting a second home. Right now, in 2024, there are 282 condos, townhomes, and houses up for grabs. This number is a 141% jump from what we saw at the same time in 2023¹. Prices vary, with the average listing at $620,000 and the median at $485,000. These numbers show an 8% drop from last year¹.

Today's market is a bit of a mix for buyers and sellers. More available properties mean more options for buyers. But, it also means sellers have to compete more. This June, 87 properties found new owners. So far this year, 539 places have sold. This is slightly down, by 3%, from 2023¹. Despite these shifts, coastal real estate investments in Ocean City are still attractive. They come with stable sold prices and a moderate selling pace of three months¹.

Key Takeaways

Ocean City MD real estate shows a 141% increase in inventory compared to 2023.
The average active listing price is currently $620,000, with a median price of $485,000.
A total of 539 properties have been sold in 2024, marking a 3% decline in overall sales volume.
In June 2024, properties sold for an average of 97% of the list price, spending 53 days on market.
The market presents a three-month absorption rate, indicative of balanced buying and selling dynamics.

Current Housing Market Conditions

Right now, Ocean City's real estate scene is at a Neutral Market stage. This happened in June 2023, moving from a Seller's Market. The current market is fair, favoring neither buyers nor sellers too much. Homes are sold in a reasonable amount of time, making negotiations fair.

Neutral Market Status

In Ocean City, the Neutral market means prices are balanced. The average price for listings is $550,000, with the midpoint at $450,000². Also, there are 282 condos, townhomes, and houses listed for sale. That's an increase of 141% from last year¹. It shows a competitive market that is adjusting well.

Impact on Buyers and Sellers

The Neutral market affects buyers and sellers differently. Buyers get the chance to negotiate, often buying below the listed price. Data from December shows homes often sell at 96% of their listed price². Sellers, meanwhile, enjoy a steady demand. Homes sold for about $659,000 on average in December, showing the market is healthy². This environment benefits everyone involved.

Recent Market Changes

There have been significant changes in Ocean City's market over the past year. Active listings have jumped by 83%, now totaling 253². The average time to sell a home extended by 33%, reaching 36 days per listing². Plus, the median sold price has gone up by 6%, now at $431,000². These numbers show how the market adapts to the changes in supply and demand. They suggest investing in Ocean City could be a wise choice.

Ocean City Property Prices

The real estate market in Ocean City shows homes gaining in value. There are more homes for sale now than before. Also, homes are taking longer to sell. In June 2024, the median home prices hit $455,000. This is a 7% jump from June 2023, showing homes are worth more³. On average, homes stayed on the market for 53 days in June, up 50% from last year⁴.

Median Sold Prices

The median sale price of homes in Ocean City is climbing. By June 2024, it reached $455,000, going up from past months³. This fits with the city's housing cost increase. The average price per square foot is now $432¹.

Comparison to Nearby Cities

Property prices in Ocean City and its neighbors show different trends. Selbyville-Frankford's property values grew by just 1.6% last year, unlike Ocean City's rapid growth⁴. This makes Ocean City a hot spot for buyers and a smart choice for investors. For more info on Ocean City's housing market, click here.

Median Sold Price By Bedroom Count

The Ocean City housing market shows different property values based on how many bedrooms a home has. This is key for buyers and sellers to look at when making decisions.

1 Bedroom

In Ocean City, MD, 1-bedroom homes sell for around $297,000. This shows that smaller homes are valued well in the market⁵.

2 Bedrooms

2-bedroom homes are selling for about $410,000. They appeal to small families or couples wanting to buy in Ocean City⁵.

3 Bedrooms

Three-bedroom homes have increased in price by 4.4%, now at $594,800. This rise shows they are in high demand⁵.

4 Bedrooms

4-bedroom homes also do well in Ocean City. Their prices play a big part in the market's overall value.

5+ Bedrooms

Homes with five or more bedrooms have jumped 48.1% in price, now over $1.2 million. This big climb highlights how crucial the number of bedrooms is in luxury markets⁶ ⁵.

Housing Supply in Ocean City, MD

Ocean City has 485 homes for sale right now⁷. The market changes a little every month. We'll look at how many homes are available by the number of bedrooms. This gives a good view of the local real estate scene.

Number of Homes for Sale

The number of homes for sale in Ocean City gives us important info⁸. Even with fewer listings, there's something for everyone. Luxury townhomes in Sunset Island have 4 bedrooms and 5 baths and cost about $875,000 on average. These homes show how strong the market is and the opportunities for investors.

Homes for Sale by Bedroom Count

In Ocean City, home listings vary by how many bedrooms they have. Listings of 4-bedroom homes went down by 11.1%. But, 1-bedroom homes listings went up by 9.2%. This shows a growing interest in smaller, more affordable places to live.

Also, there's a big trend in condos in Ocean City⁷. This trend started with a boom in condo building around 1983 to 1987 and again from 2000 to 2002. With luxury condos and more up for sale, buyers have lots of choices.

Recent Sales Data

Recent sales data shows a big change in Ocean City's housing market. Last month, home sales dropped by 32.2%, with only 78 houses sold⁹. This trend is part of a larger pattern where real estate sales have decreased. Also, 67.9% of homes sold for less than their listed price⁹. This means buyers might get better deals on homes. When compared to last year, Ocean City saw a minor decrease of 2.4% in home sales¹⁰. This slight drop hints at changes in the market and possibly the effect of rising interest rates in Maryland¹⁰. The current data suggests it's a tough time for sellers to get their asking price. However, it could be a great opportunity for buyers to find homes at good prices.

Active Listings Overview

The Ocean City real estate market has recently reported 282 condos, townhomes, and homes for sale. This marks a substantial increase of 141% compared to last year¹. Such a rise in the number of active listings points to a vibrant and changing market in Ocean City.

Now, the average listing price for properties in Ocean City stands at about $620,000. The median price is slightly lower, at $485,000¹. This shows a wide range of property values for those looking to buy. Additionally, Ocean City has experienced a 2% growth in the average sold price per square foot over last year, showcasing the market's strength and appeal to investors¹.

The current absorption rate in the market is three months¹. This means it would take about three months to sell all listed properties at the current rate of sales. For more detailed information, check out the full Ocean City real estate market report¹.

The latest data on Ocean City's real estate listings and market inventory shows a strong and adjustable market. With more properties available and an attractive oceanfront location, Ocean City offers great options. It's perfect for anyone wanting to invest or find a new home, whether for year-round or seasonal use.

Listing Prices vs. Sold Prices

In Ocean City, we are seeing a big difference between listing prices and sold prices. When we look at asking price trends and sold price comparisons, we get a full picture of the real estate price analysis here.

Asking Price Trends

The average listing price in Ocean City is now $620,000, with the median at $485,000. This shows an 8% drop from last year¹. In the first half of the year, June saw 91 new properties listed, reaching a total of 688. That's a 20% rise from last year¹.

Sold Price Trends

Looking at sold prices, the median in June was $459,000. Throughout the year, the median sold price has been steady at $418,000, not changing from last year¹. In June, properties in Ocean City generally sold for 97% of the listing price. This rate has only dropped 1% from last year¹. Even with changing listing prices, the sold prices have remained strong. This shows a market that is both balanced and competitive¹.

This difference between asking price trends and selling prices is very important. It helps buyers and investors understand the market clearly. This real estate price analysis is vital for making smart decisions and investments.

Average Time on Market

Homes in Ocean City are now taking longer to sell than before. As of April, they stayed on the market for 53 days on average, which is longer than the previous year¹¹. Even with this increase, the market is still moving well. The current three-month absorption rate shows properties are selling steadily¹¹.

Recent Sale Times

In April, 110 properties were sold, making a total of 337 for the year¹¹. Even though homes are taking longer to sell, they still go for 97% of their asking price on average. This shows the market is still strong, even with longer sales times¹¹.

Breakdown of Home Sale Times

Though homes are on the market for more days, many are selling in under 30 days. This shows that people still really want to buy. It helps us understand how fast homes are selling in Ocean City and the Delaware Beach areas.

For those looking to sell, working with local real estate agents can help. They can give advice on pricing and how to make your home more appealing to buyers.

Despite homes taking longer to sell, the Ocean City market is still doing well. Many homes are still selling quickly and for good prices. This tells us a lot about the health of the real estate market today.

Wind Risk Factor

Investing in real estate in Ocean City, MD means you must understand the risk of severe winds. Hurricanes are a big threat here, impacting properties greatly due to wind damage. Knowing about this risk is essential for anyone looking to invest.

Projected Likelihood of Severe Winds

In the next 30 years, about 7,451 properties might face serious wind risks¹². It's important to think about these risks when looking at real estate. The intensity and frequency of hurricanes could grow, with winds possibly hitting over 164 mph during extreme storms¹³. This shows the high hurricane risk for properties close to the coast.

Impact of Wind Risk on Real Estate

The impact of severe winds and hurricanes is a big factor in real estate decisions in Ocean City. High-risk areas might see higher costs for insurance and upkeep, affecting profits from investment. Buyers should consider the dangers of coastal erosion and hurricanes before buying beachfront homes¹². These factors can change how much a building is worth in the future.

To learn more about buying beach properties and climate risks, check this resource.

Real Estate Investment Opportunities

Investing in Ocean City opens many doors due to its lively property market and steady growth in real estate. The city boasts 148 properties for sale, from budget-friendly homes to luxury waterfront estates. This wide selection lets investors find just the right option¹⁴. With an average rental income of $1,467 per month, Ocean City is a hot spot for property investment¹⁴.

Long-term Investment Potential

Ocean City is great for long-term investments, offering significant returns. The area's real estate is valued at an average of $353 per square foot¹⁴. This stable valuation, along with seasonal trends, helps long-term investors make the most of their investments. For example, Spring sees high demand while Fall offers the best buying options¹⁵.

Luxury properties here can give Airbnb returns of about 1.86% to 3.17%¹⁴. This shows the potential for good earnings over time.

Short-term Gains

Short-term investments in Ocean City are also promising. High-end rentals can bring in between $4,439 to $6,873, offering substantial returns¹⁴. Suburban homes start around $240,000 and might yield returns up to 4.23%, with Airbnb possibilities reaching 8.17%¹⁴. These figures are encouraging for those looking for quick profits.

In the Summer, sale activities slow down, making it easier for buyers to find good deals. This period offers fewer competitors and special opportunities for short-term investment gains¹⁵.

Future Market Predictions

The Ocean City market outlook looks hopeful, expecting property values to keep rising. Those increases will be shaped by things like the environment, local growth, and the match between how many homes are for sale and how many people want to buy.

Trends Forecast

In 2024, the Ocean City housing market shows gradual changes. Homes' average selling price went up 6.0% from the previous year, hitting $514,062 in May¹⁶. At the same time, the number of deals waiting to close increased a bit, showing the market's energy with 7,094 units in May¹⁶. Inventory rose slightly to 1.8 months, pointing to a more balanced market¹⁶.

Expect this slow and steady trend to go on. Home prices dipped a tiny bit, -0.2%, from November to December 2023. Yet, they rose 2.5% from November 2023 to November 2024¹⁷.

Factors Influencing Future Prices

Many factors will dictate future pricing. How well the area can handle weather and natural disasters is key. So are Ocean City's economic growth and how confident people feel about spending money¹⁶. Rising costs for condo fees due to insurance and building funds have led to more condos for sale¹⁸.

Changes in laws, like a possible room tax hike in Worcester County, could also alter the market by affecting investment choices¹⁸. To keep up with these trends, it's vital to check reliable data. Prospective buyers and investors should look at market analyses, like those on Wallet Investor's real estate forecast, to make informed decisions¹⁶.

Last year, home sales went down by 7.3%. But, Fannie Mae predicts about 4.5 million homes will sell by 2024's end. This matches the national pattern of modest growth in an ever-changing market scene¹⁷.

Conclusion

The Ocean City real estate market is full of challenges but also offers great opportunities. It has a very dynamic environment, noticed by a real struggle due to the small amount of available homes and condos¹⁹. This situation leads to a lot of bidding wars for the new listings. Properties that have reasonable prices are sold quickly. This shows how fast everything moves in this market. Therefore, knowing the perfect time to act is very important¹⁹.

Regarding the future outlook for Ocean City's real estate, sellers need to examine offers closely. They should look into things such as contract details, who pays for closing, and if the buyer can afford it. The success of a sale also depends on factors like a buyer's initial deposit and the current market situation (source). Getting help from an experienced real estate agent can make navigating these challenges easier.

For anyone thinking about investing in Ocean City, it’s wise to plan and prepare carefully. The number of homes available has gone up by 47% from last year. The average price for these homes is about $529,000²⁰. This situation is good for both people looking to invest for a long time and those hoping for quick profits. Yet, staying informed about the current trends and getting professional advice is crucial for anyone looking to succeed in Ocean City's real estate market.

FAQ

What is the current status of the Ocean City, MD real estate market?

The Ocean City real estate market is now stable, after being a seller's market. Prices are fairly set, making it easier to buy. Homes take a reasonable time to sell.

How has the shift to a Neutral Market impacted buyers and sellers in Ocean City?

Buyers now have a chance to talk down prices, as many homes sell for less than listed. Meanwhile, sellers might not get their asking price. However, homes are selling for 3.8% more than last year.

What are the current median sold prices for properties in Ocean City?

Homes in Ocean City are selling at a median price of $441,250. The average cost per square foot is $430. Prices have gone up by 3.8% over the last year, showing steady growth.

How do Ocean City property prices compare to nearby cities?

Ocean City's property prices grew by 3.8% this year, outpacing nearby Selbyville-Frankford's 1.6% growth. This makes Ocean City a better performer in the area.

What are the median sold prices for different bedroom counts in Ocean City?

Prices vary by the number of bedrooms. A one-bedroom goes for $297K and a two-bedroom for $410K. Three-bedrooms are at $594.8K, showing a 4.4% rise. Large homes, with 5+ bedrooms, jump to over $1.2 million, a 48.1% increase.

How many homes are for sale in Ocean City currently?

Right now, 485 homes are available in Ocean City. This is a slight dip from last month.

What is the recent sales data for Ocean City real estate?

Last month, home sales dropped by 32.2%, with 78 homes sold. Nearly 68% sold for less than the listed price. This suggests buyers may have an upper hand in negotiations.

What is the average listing price versus the sold price in Ocean City?

The average listing price is $620,000, while homes typically sell for $459,000. Homes are selling close to their listing price at 97%, a slight shift from last year.

What is the average time properties stay on the market in Ocean City?

Properties spend about 53 days listed before selling. This is longer than last year, yet many still sell within a month. This shows enduring interest from buyers.

How does wind risk affect Ocean City real estate?

Ocean City could see nearly 7,451 properties facing strong wind risks in 30 years. Intensifying hurricanes can affect property values and insurance. This is a major concern for homeowners.

What are the key investment opportunities in Ocean City real estate?

Ocean City offers good investment chances, both for short-term gains and long-term growth. Being aware of market and environmental shifts is crucial for profitable investments.

What are the future predictions for the Ocean City real estate market?

The outlook for Ocean City's property market is looking good, with continued growth expected. Future prices will be influenced by environmental issues, local economy, and housing supply and demand balance.