Updated 10 April 2013 18:28—Cindy Genther of the Bay Area Association of Realtors, and the association’s past president, Paula Ruckelshaus, gave an update on the Eastern Shore’s struggling real estate market to the Kent Commissioners on Tuesday.
They said home sales have clearly remained challenged since the peak in 2006, a reference point commonly used in the industry.
Although the number of home sales in 2012 rose 10.5 percent over 2011, sales in 2012 are down by 43 percent from 2006.
The $750 million in home sales in 2012 is $600 million below 2006 when sales reached $1.35 billion.
The number of units sold in 2012 was 2,485 compared to 3,614 in 2006, a decline of 32 percent.
“[Kent’s] recovery is a little slower than the other Eastern Shore counties…particularly in terms of inventory,” Genther said. “We still have the lowest unit sales on the Shore, and of particular concern, is the high level of inventory.”
Homes in Kent stay on the market an average of 24 months, while Cecil County moves a home in 10 months.
Genther said that 40 percent of buyers don’t maintain a primary residence in Kent County.
“When people have a choice of where to spend their disposable income, they have been holding back because of the bad economy and not spending on second homes and vacation homes,” Genther said. “I believe this is why we are not seeing the recovery as quickly as we could, for example in the area of Rock Hall.”
And while home sales are starting to rebound on the rest of the Shore, Kent County is fairing worse because of a declining school system, the choice of residents to resist growth, and aging retirees moving away to be close to family.
“We are seeing an exodus of existing residents,” Ruckelshaus added. “Everyone I’m working with today who is a seller is leaving Kent County and leaving Maryland, they are older, downsizing, and they are moving closer to family.”
Ruckelshaus said the influx of new retirees could be a worrisome cycle.
“The [new] people who are looking [in Kent] are nearing retirement, and does this represent a cycle of continuing decline?” Ruckelshaus asked.
“We need to improve the demographics,” Ruckelshaus said. “We would be well served to take whatever actions we can to attract a younger population.”
On the issue of resistance to growth, Genther said there is an expectation that retirees who move to Kent County will suddenly get protection from further development.
“There is a predominant view among many of the realtors you may ask, that once people move here, they expect [Kent] to close the door and that we will allow no more development.”
“Beyond that, there is a view that the county has not been business friendly,” Ruckelshaus added. “There is not a reaching-out to the business community.”
Kent County Commissioner Ron Fithian believes slow growth has not been the fault of county government, which has tried to bring businesses in.
Fithian said that it was mostly residents who have been responsible for stagnant growth in Kent County. He noted attempts by the county to bring in an airport, a Walmart, a convention center, and a golf course.
“In my 15 years I don’t think you could think of a project that I voted against,” Fithian said. “But it was the people who rose up and killed those projects, it wasn’t the government.”
“You’re not going to attract young families if they have no way of making a living,” said Fithian.
Genther told the Spy on Wednesday that one of the major barriers to attracting young families is the school system.
“The public school system, by independent rankings, does not appear as good as the neighboring school systems, where home sales are fairing better.” Genther said. “People who are looking to move here are looking at a our schools and believing that Kent is not as good as Queen Anne’s or Cecil counties.”
A. Mills says
Kudos to Genther & Ruckelshaus for speaking the truths associated with growth (or lack of), education, and jobs/business growth available within Kent County. Even the County Commissioners couldn’t argue with their reasonings.
** Facts:
Kent County unemployment is approx. 2% higher than the state average.
Total “non-government” major employers in Kent County is 2767 – while our population is approx. 20,000
11% of the county is on Food Stamps
There is a projected decrease in property value of 14.8% from the year 2011 thru 2014
the 1999/2000 school year saw 2,986 students, while the 2012/2013 school year reported a total of 2040 students enrolled in the public schools – a decrease of 1/3
**taken from the April, 2012 letter from the Kent County Commissioners to the Maryland Board of Education
Our kids are not moving back in droves after college or coming back to buy houses and start families – why would they, for the most part there aren’t the careers . Well, there are jobs – but not anything that lends itself to supporting a family.
Fletcher R. Hall says
Why mention Middletownm Delaware. Not an oppoprtunity!
What about exisiting features, waterfront, colonial nature and hunting and water sports. However, there is no marketing/advertising. This is a critical component.
And, there is Washington College. It needs to be included in the features for this area.
The county and Chestertown have real opportunities if properly marketed and planned.
Let’s stop moaning!
Fletcher R. Hall
Chestertown
dlamotte says
Very well said!
Keith Thompson says
Why mention Middletown? Because so much money from Kent County is spent there when it could be spent here if Chestertown and the county made the most of its resources like you suggest.
Otherwise, I concur with dlamotte…very well said!
Kevin Shertz says
“Why mention Middletownm [sic] Delaware. Not an oppoprtunity [sic]!”
About 20,000 people live in Middletown alone… that’s about 4x the population of Chestertown. I bet if a few of ’em were enticed to visit, it may actually put some money in local cash drawers. Smyrna, DE has 10,000+ residents.
This area is cursed with a bubble over itself… a bubble that makes people reflexively say, “We are so unique. We are so special.” The problem is, as Jonny Cage (finish him!) says, there are many many places in our immediate area that could equally be called special and unique. We’re in competition with surrounding communities for their attention. There is a tendency to over-assume how great Chestertown is relative to other places — sad, but true.
In regards to promotion — one of your points, Fletcher — it may be of news to people that Kent County is the ONLY county in the State of Maryland that has tasked a single person to be in charge of both Tourism and Economic Development. I worked with Bernadette Bowman last year on the passage of the microbrewery legislation, and will tell you she did a tremendous job and was very effective. But, the reality is, one person can only do so much.
Until the County or the Town are willing to invest in having people spearhead these activities, and consider the activity as “cost of doing business” instead of just an expense, expect more of the same.
Holly Geddes says
I agree.
Jonny Cage says
In regards to the article…. Durrr! The writing is on the walls, in the papers, on the street and very prevalent within the county. “He who dies with the most toys….wins!??” These reasons led us to leave and are causing a few other families similar to ours to leave and or search for better conditions. There has to be a point when you stop saying, “well if you dont like it then leave”. Because that theory is proving way to efficient? Kent county needs to adopt a new slogan, because the take it or leave it attiude isnt all that inviting?
Jonnycage says
Mr. Hall, respectfully, I think some of the things you listed are a hard sell to entice, let alone embellish what the area has to offer. Waterfront is in no short supply. Starting from Annapolis to Pocomoke waterfront is all around. We are on the eastern shore, it kind of goes with the territory, so its not a unique focal point. The colonial nature of the town is a little unique for the eastern shore, however, Easton, St. Michaels, Kent Island and a score of other “villages” on the shore can make some sort of historical claim. Its great that the Sultanna is stationed here and we have festivities surrounding it. However, im not sure many home buyers that are moving into the area to start or raise a family can pay their bills with “colonial nature”? Hunting and water sports are also not unique to the eastern shore and most of MD. As I mentioned, water is abound and therefore watersports can be partaken anywhere. Hunting is a great selling point for the eastern shore. From Pocomoke to Elkton, the shore has some of the best habitat, wildlife and hunting grounds anywhere to be found…but nothing extroidinary in the Kent County area. Washington college is beautiful and most certainly adds to the aesthetics of the town. However, it has an extremely small student populous and is one of the most expensive schools in the state of MD. Not to mention the love hate relationship the town seems to have with the College, which tends to lean more towards the hate hate relationship most of the time? Chestertown is far from a college town, but merely a town with a college. I certainly mean no ill will towards the area, but I felt like commenting just to show another point of view. As a young family we found it extremely difficult to live in the area and raise a child with such a lack of…everything? I hope the area can break the trend thats occuring and set out on a new course. Attracting and supporting business, improving the schools ratings, adding amenities that may allow for a thriving and viable economy which in turn would attract more potential home buyers and future kent county residents.
And, there is Washington College. It needs to be included in the features for this area.
The county and Chestertown have real opportunities if properly marketed and planned.
D Lamotte says
Chestertown is not set in amber and will grow for the better given its inherently unique nature. I am sorry, however, that it will never
be all things to everyone. In order to capitalize on its strengths it must respect its heritage and rural nature. This is a lot more difficult
than what, say, Middletown and Kent Island did…bombard the area with asphalt in order to meet every “need”. Therefore, the tasks
calls for creativity and the ability to understand our stewardship that we all inherited here. What is wonderful about Kent County and
why are we living here needs to always be in the equation…then a growth we can all enjoy will enhance our lives here.
Keith Thompson says
The problem is that too many people want to keep Chestertown locked in amber and not allow it to grow for the better.
D Lamotte says
I disagree. People are concerned with the idea of growth because they witness what it has been allowed to reap in most mid-atlantic towns. They see corporate
takeovers of towns that turn them into bland strips of consumerism that lack any recognition of what was initially there.
Fortunately for our town, we have an urbane, educated electorate who, I feel, are here for the long haul and see the benefit that
selective growth can bring for everyone. That is not to say that there will not be people upset at not having an Applebee’s and
Wal Mart on the corner, but, really,anywhere has that. These people, should they desire to remain here and frequent such places,
know where to go.
I mean, what makes Kent County special? That should be the focus for anyone who wants to remain. What growth will keep it special?
That is really vital because there is a lot to fear if growth is allowed to be random and haphazard.
Keith Thompson says
Again, I’m not suggesting that Chestertown needs a WalMart or an Applebees; but anytime the word growth is mentioned, people equate growth with Walmart. So often, smart selective growth is seen as the key of Chestertown’s survival but the problem is that even the idea of smart selective growth is seemingly feared by the powers that. Chestertown has a college…it has a riverfront…it has a history and heritage, and these are the kinds of things that are being underutilized due to the “culture of no” that keeps the town locked in amber and incapable of growing for the better.
Hey, you had more than 80 show up for a Ukulele seminar at Music Life on High Street on Friday night. Yes, is it possible but you have to make it happen rather than sit around and wait for something to happen.
Kevin Shertz says
Kent County is stagnant because its real estate prices, relative to local income, is completely out of whack. This is why so much of the ownership is either second homes or people that commute outside the County for employment.
The usual rule-of-thumb is that people can afford 3x-4x their annual income to own a home.
Average 2012 price: $304,089
that’s 3x: $101,363
and 4x: $76,022
As the old saying goes, there’s no problem in real estate a lower price won’t fix.
Bob Kramer says
Kevin… it’s a little bit different comparison when you use the median house price v the median income… as averages can be heavily skewed by a few very high prices&/or income. Also, a missing piece of the discussion is how many non-resident folks work in CofK.
Kevin Shertz says
Proceed, Mr. Kramer…. show me the difference.
Bob Kramer says
Kevin… for example,
1 house sells for $2 million and 5 houses sell for $200,000 each. The average home sale price is $500,000, but the median home sale price is $200,000.
1 person makes $250,000 and 5 people make $40,0000, $45,0000, $50,000, $55,000 and $60,000 respectively. The average income is $83,333. The median income is between $50,000 and $55,000.
The average is always higher than the median in any calculation. The median is most useful in defining a group… as it levels the extreme high numbers.
Your application of matching income and home price is a key piece of analyzing the data when you segue to the jobs issue. It’s just a little bit different picture when you use the median numbers.
Kevin Shertz says
Bob, whether you use average or median, it highlights the problem.
from the 2010 Census:
https://quickfacts.census.gov/qfd/states/24/24029.html
Median value of owner-occupied housing units, 2007-2011: $272,900
Median household income, 2007-2011: $53,480
3x: $90,967
4x: $68,225
So yes, although median is lower than average price, the question is how do home prices and incomes relate to each other.
Joe Diamond says
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
It was easy. I gave a business card from a realtor to our pilots. They planned a flight. We crossed the Atlantic, went through customs at White Planes, NY….had lunch and did a few bank transactions …pilots took fuel for the plane. We jumped down to New Castle, Delaware. The realtor was there with a car. We looked at six farms and I bought one near Still Pond, MD; four hundred acres on Chesapeake Bay!
We met the pilots and our plane at Easton airport…….now we are back in Germany; no problem!
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
Easy! I was born here. My family has worked ground here since before the unpleasantness with the south………not the same ground……. but we have been here. Various ancestors have done very well and passed on their success to a next generation. I am working hard to hold what is here. I worry about what my kids will do.
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
One weekend a roommate over at Towson University asked if anyone wanted to go to the Eastern Shore. I said great! I always loved Ocean City. He said we were going to go left after the Bay Bridge and run down to Rock Hall. Later I married a local lady. We raised a son here. It has been a good place to raise a son. Now he is grown and gone. I have been underemployed since I arrived. Pretty place!
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
You are asking the wrong person. I screwed up in my last position and the company said come here or find another company. I have been driving in and out of here for two years. The wife won’t come down here with the cows and crows. I just made a deal to relocate my career outa here. I’m gone!
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
My wife and I met after our children had all married and our first partners had gone. We were driving around Philadelphia and just followed a road out of town. We found Chestertown and kept coming back. Now we have moved here and the grandchildren can come find us.
HOW DID YOY FIND THE EASTERN SHORE OF MARYLAND?
Oh, me cousin bring me. We work in Delaware picking the crop. Sometime we come to Maryland to find work. We had a car break up…a crash. The police say my card is not good. I bought my card and pay for it in Texas. Now they say I am going home. I like Maryland. I come back soon.
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
Cap, my people are water people. We fish. It is a big bay and we have always pulled a living from it. We move the boats around. Might be in Baltimore next week but I doubt it……probably going down to Virginia.
HOW DID YOU FIND THE EASTERN SHORE OF MARYLAND?
Joe
E Collyer says
Bare with me, I like fables. (okay, well, parables)
A car sits in the mud. The wheels spin forward, the wheels spin backward – the car only goes further into the mud. Neighbors look out their window saying how much of a shame it is that such a pretty car is sinking in the mud. Some tell the driver it’s useless. But they want the problem fixed. An ugly care sitting in the ditch won’t attract buyers for the house next door.
But then there’s a group gathering, working together with the driver to figure a way out of the problem. Neighbors wonder, “Is the solution going to mess up their yards? How long will this take?” They are not sure they want to sacrifice their peace and quiet. They close their shutters assured that someone else will take care of it.
Study groups have worked hard in the past to come up with solutions to help the Kent County Public Schools. Some have been disregarded; some have been embraced for a little while. The issues are complex with each intertwined with another. Doug Goodall’s program Kent Forward can be the beginning of the untangling of the knot that holds the County hostage. This cannot be a program that County residents watch from their windows. The only sacrifice is time. Challenge yourself and even more importantly challenge your neighbor to get involved. You don’t need to be an expert. Just care.
I will be offering my support to the Kent Forward program and I challenge everyone who reads this to make a call and find out how you can help.
elaine barker fithian says
The property taxes in kent co. Is the MAIN reason the young and the old are not buying homes. I have looked many times for a home, guess what? Look at the property taxes… its like another house payment every month!
Holly Geddes says
This article by Daniel Menefee describing the report given by Cindy Genther and Paula Ruckelshaus to the County Council is very clear and specific. Their conclusions are also well drawn. As they indicated, the word “growth” is scary to many because they equate any growth with becoming a suburb.
We need to re-examine that concept. Organizations, including towns, resemble organisms in many ways. When an animal is born, it grows to its mature size. The growth continues while it is in its prime because new cells replace the old ones to keep the animal alive. Old age and death occur when the sustainable growth of replacement cells slows so that decline occurs. The same process happens in towns.
To be a functional town, we need that sustainable growth. Actually, at this point, there are enough empty homes and stores to indicate that a small growth in size is actually in order.
The town government has often said that businesses come and go; and, in turn another one comes. The problem is that this cycle has not been maintained. Neither the county nor the town have specific personnel dedicated to economic development and sustained growth. The town never did and the county abolished their office a few years ago. They then merged this job into promotion for tourism. The folks in that office make a valiant effort to do both. But the job is too big to be handled with their limited human resources. This is not in the best interests of our citizens.
We have a large number of senior citizens and vacationers in town. That is not intrinsically bad. The problem with relying on an aging population and second home ownership is that neither is able to be sustainable or vibrant in and of themselves. To attract a younger population requires job growth. Job growth can be promoted through initiatives such as improving the reputation of our schools and upgrading our communications infrastructure to a commercial grade of service. Fortunately,Kent Forward is actively pursuing the first of these. I encourage all to support their efforts. The technical infrastructure will take a collaborative effort. The town should spearhead this effort.
The “no growth” policy / philosophy needs to be amended to become a “sustainable and well considered growth” philosophy.
Specifics in regulations regarding insurance and zoning should also be revisited and amended by the town where appropriate to foster use of available business and residential space. As it now stands, we have zoning rules that do not allow structures to be used as they were originally designed. This is contrary to our own code for historic preservation and detrimental to maintaining the value of the existing real estate. As a result, we also lose property tax revenue.
The town government has to provide a key role to define, foster, and guide the direction of growth. It needs to encourage it in a sustainable and reasonable way. We need to realize that the growth of new cells within a body does not mean a huge growth in total size nor a change of identity. We love the small town we live in and have no desire to live in a suburb. I hope we do all we can to preserve and promote the vitality of our town.
Ken Noble says
Gee, maybe Washington College and the UMMS and a few others can get together on a “Chestertown Initiative” that parallel Mr. Goodall’s effort here.
My college did that in the middle of nowhere, beyond the great north and up against a foreign border. It wasn’t like the place was smack between Balt-DC and Philly. It worked there and It ain’t like we are in the middle of nowhere. It just FEELS like it sometimes. We need to MAN and WOMAN up, yo!
Good comments all around. Holly, next time we complete a Town Comprehensive Plan, make sure that it does not take EIGHT YEARS for a new zoning code and map. We could have redirected the discussion with one over bearing applicant in particular if the Town had simply adopted the “neo-traditional” mixed used zone that I bummed (non-copywritten) from St. Michael’s. When you all look over the new plan START with assessing how the implementation of the LAST plan went. Don’t just get rid of the things that didn’t work or didn’t happen, figure out WHY they didn’t happen and then either abandon the concept or change the “carrot and stick” formula. I, for one, think that “tax incentive financing” has to work into the plans to some degree. Since there seems to be a fair amount of discussion about the JOBS part of the equation, perhaps this should be step ONE in Chestertown, the county seat of one of the last best places left….keep it that way. Don’t let it die. Don’t just be sastified with living in a zoo (tourism).
ronny aseltine says
We moved to Chestertown because we loved the small thriving village and the college. We feel that the town has a lot to offer. But, we are about a decade away from retirement age. We purchased , maintain and pay taxes on a home. We pay state taxes. We make very little demand on services. We have no children with whom we burden the tax payer, so why is it undesirable to have mature folks moving to Chestertown? Generally as a group we are law abiding, we shop here and dine here and volunteer here. I am amazed that this thought of as a problem.
I don’t see what good a Wall Mart might have done for the area but a business incubator would make sense. I have also know of a community that put in an industrial kitchen that allowed many small local manufactures of specialty food products such as relishes, mustards, preserves. soups , chips, brewers and cheese makers to use the facilities thus allowing small entrepreneurial businesses to thrive. That would be a natural for this area.