LOKING BACK ... LOOKING FORWARD ... from Ocean City, New Jersey
In Part 1 (11/16/2009) I mentioned that at this time of year I start to analyze 2009 by reflecting back and forward as well. I also talked about looking at real estate from a local perspective even though national economic news can impact on all areas as it has done since October, 2008. I also mentioned that many people tend to generalize real estate in terms of a national perspective instead of so many smaller units like our own area, Ocean City (NJ).
In order to understand almost anything one must reflect on "the history of things." In our case, that means taking a careful look back to reflect on the "sold property" market through the past 10 years. Why should we do this? Because this may tend to provide us with some insight into where we have been and maybe where we might be going. And, of course, maybe not ... in terms of a clear picture. Sometime history does not always provide the answer you were hoping it might.
In summary, the late 1990s and 2000s were the beginning of a 5-6 year run of very strong sale years here in Ocean City, a time when property values began to soar in the single family and condominium real estate market. Let's now focus on 2005 which for many was a very strong year as well, but for others one could see the ending of the bull real estate market during the last 6, or 3 months of that year (again here in Ocean City, New Jersey).
In other words, the 2006 year opened with increased number of property inventory, particularly in the condominium market. Things settled down a bit more in 2007 and 2008 with lower inventories and a bit more coming together of the condominium sales market in terms of property values. However short sales continued more in this property category than any other. 2009 started strong with intentions of being as good or better than the last two years. However, we arrived at the fall buying period in September with an overall flattening of our sales market. 2009 will turn out to be our weakest year of the past four (2006 through 2009).
A word should also be mentioned about single family sales during this period. They tended to stay in a much stronger position possibly due to the fact that the owner population here were less speculative in their purchasing during the boom period. Overall, the single family property category maintain a much stronger position in terms of sale inventory and property value throughout the 2006 through 2009 time frame.
That a very short review of the 2000 through 2009 time frame as one reflects on the overall background of the market conditions in real estate in Ocean City, New Jersey. dap