CRYSTAL BALL OF THE MARKET...
he buyers keep coming. Interest Rates remain low. Multiple offers are not uncommon. Inventory supply in most shore towns is the lowest since 2009. Most islands are on their way to a record sale transaction year. Fully equipped single family homes under $800k are scarce; the desirable back-bay water front homes start at
$1.8 million. Affordable beach front duplexes are near extinct. If a listing is well maintained and priced correctly, it will sell quickly. A property that is aging and in subpar condition will take just as long as it did in a buyer's market unless the price reflects the difference of the market price minus improvement costs. One bath, limited parking and lack of central air will slow a sale up considerably.
How long will this market last? One major headwind is heading to the region known as the shadow inventory. These are properties that are the 2nd and final wave of foreclosed properties that are being released for sale by the banks. These properties are left over from the Great Recession of 2008 and are in various types of condition: 22,000 will be sold by bank reps in Cape May County. The Wildwoods and Ocean City have the most foreclosures; 60,000 bank owned properties will be unleashed in Atlantic County. Sellers and buyers should be mindful of the real estate cycles!