Sunday, March 6, 2011

How is the market in Ocean County?

We are just over 2 months into 2011 and about to enter the traditional “Spring Real Estate Market” here in Ocean County, NJ. So, how is the market in Ocean County looking so far?

Looking back at January and February of this year, Ocean County saw 199 and 194 Single Family Homes sell (respectively). The median sales price averaged $260,000 for both months and the sales to list price ratio averaged 93%. We currently have over 21 months of inventory available in Ocean County, which means; at the current pace of sales, if no other homes were to come on the market, it would take over 21 months to sell off the existing supply of homes for sale!

Different Market Dynamics

Slide courtesy of Keeping Current Matters!

As we can see, based on the chart above, we are experiencing an Extreme Buyer’s Market here in Ocean County. Home prices will continue to fall as inventory levels continue to increase (not including the Shadow Inventory wild card). Last year, at this time, the HomeBuyer Tax Credit was driving demand. What factors may affect this year’s “Spring Market” in Ocean County?

Well, according to some industry experts, 2011 could be the end of the housing crash! What are the economic factors in play signaling this possibility? Let’s take a look:

  • Mortgage Interest Rates remain at Historic Lows
  • Housing “Affordability” is the best it has been in decades
  • Unemployment reached its lowest level in 2 years
  • Consumer Confidence is growing
  • The Stock Market is re-bounding
  • Inflation is looming

Any, and or all, of these factors may be behind the recent “spurt” of buyer activity we are currently experiencing here in Ocean County…not to mention the snow finally melted!

Large Chart

In a nutshell; if you are in the market to buy a home in Ocean County, BUY NOW! If you are in the market to sell a home in Ocean County this spring, DO IT NOW! If you don’t WANT to buy and don’t NEED to sell, please stay off of and out of the market in Ocean County! Thank you.

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