Both Lewes and Rehoboth have seen a drop of 10-12% in comparable existing homes. We do not anticipate a continuing major drop in homes because the low Delaware taxes and excellent lifestyle continues to attract retirees and professional people who select the area. Major developers become less competitive when they only build one or two homes at a time. The money drain for development infrastructure has tempered developers thurst for building.
The other reason we believe sanity is returning is that material prices have increased dramatically over the past two years. This works to the advantage of existing properties because the long term value is always in the land. The portion of a price that reflects existing construction is therefore declining relative to new construction. (Sorry for the economics lecture.) A quarter acre lot two miles from town and the beach will never be worth more than a quarter acre in town.