 |
Winter, 2007-2008
WINTER WONDERLAND
The Jersey shore has so many mild days in the winter that in some ways it can be called a "winter wonderland". Okay, it's not the snowy kind of wonderland. But it's so nice to ride bikes, walk on the beach or boardwalk, bird watch, or stroll through the woods. We don't experience prolonged cold spells, so you can usually get outside on a regular basis.
Enjoy the mild winter here. Before you know it, the birds and buds of spring will return.
CRISIS OF CONFIDENCE
It was President Jimmy Carter who labeled the hard economic times of the late 1970's as "a crisis of confidence". Perhaps our present mortgage/housing market is also suffering from a crisis of confidence.
The media has made the mortgage and real estate sectors a popular whipping boy. Nearly everyday we hear more negative news, more bad statistics and numbers. But if you sift through the rubble, you can find plenty of positives.
Let's start with foreclosures. The national average for foreclosures in October, 2007 was one in every 555 households. In New Jersey, it's one in every 711 households. That's down from the previous October, and September was down 6% from the previous September. In contrast, Nevada (with it's "can NOT lose" Las Vegas market) has one foreclosure in every 154 households.
So as far as foreclosures are concerned, New Jersey is in pretty good shape. Only six other states share the distinction of having less foreclosures now than a year ago.
Locally, the foreclosure rate is even lower than New Jersey as a whole. A lot of that can be attributed to the fact that we are a second home market. Of approximately 94,000 residences in Cape May County, half are second homes and half are primary residences. The second home market attracts a more affluent, financially sound clientele. They are better able to weather the storm when money gets tighter.
Interest rates are a good motivation to buy. Area lenders are now offering a 30 year fixed at 5.875% with no points. Not bad. The only difference now from previously during the boom is that mortgage companies are scrutinizing financial qualifications more. But if you have good credit, a loan application is still just a formality.
Home prices are still low. While real estate prices have dropped every month during 2007 on a nationwide basis, locally it's a different story. Prices in our area, which includes Cape May, Atlantic, and Cumberland counties, increased 17% this year. That should be an indication that our real estate market hit bottom in 2006 and is now in a recovery mode.
A fairly new phenomenon hasn't affected our market yet, but it may. The weak dollar is enticing foreign investors to look to the United States. A $50,000 down payment on a home that took 37,920 euros at the beginning of 2007, now is around 34,000 euros. That's a substantial difference. We'll see if our proximity to New York and Philadelphia brings those foreign buyers.
While home sale totals in 2007 are the lowest since 2002, the country will still see 7 million homes sold in 2007. That's a LOT of homes. In Cape May County, weekly real estate sales were about $40 million in the autumn of 2007. In the winter they'll run around $30 million per week. Those are serious numbers.
Let's hope that the folks will step back, take a deep breath, and realize that the sky isn't falling. The real estate market, which is the engine that drives the country, will survive. It is on a path to once again be the investment of choice - the one that pays the biggest rewards. Have confidence!
ROAD WORK
Winter is a time when the shore area sees the most road construction. You may have noticed that North Wildwood has a bunch of east/west streets torn up. They are replacing old sewer lines - many terra cotta and 50 years old - under 15 streets and expect to have the roads ready for summer. The cost is $4 million. They are already scheduling repairs on 10 more streets next year.
Wildwood is upgrading Pacific Avenue between Burk and Spencer avenues. New curbs, sidewalks, gutters, street signs and lights will hopefully draw new businesses to the once bustling commerce center.
The Garden State Parkway has been doing work on the left turns at the traffic lights at Exits 9, 10, and 11. It has funneled traffic from three lanes to just one lane on selected days in the late fall, but it should make a difference.
GARDEN STATE PARKWAY PLANS
The New Jersey Turnpike Authority unveiled its plans for eliminating the three traffic lights just mentioned. At a cost of about $90 million, the parkway will be elevated where the three exits now exist, and diamond shaped on-off ramps will be added with access in all directions. The plans have not been finalized and construction isn't slated to begin until 2010. They also haven't decided whether to do all three intersections at once, or do the project in phases.
The plan isn't without its critics. The plan calls for closing the southbound lane only exit at Mechanic Street in Cape May Court House. This exit heads a lot of vehicles into the heart of downtown without further clogging Stone Harbor Boulevard (Exit 10). It will also negatively impact several business, the most prominent being the Hy-Land Motor Inn. Closing this small exit makes no sense.
The county Chamber of Commerce building at Crest Haven Road (Exit 11) will also suffer. They fear that the elevated road will cut into visibility for people seeking out their Visitor Center.
We'll see how the planning process pans out. It'll be 2012 before we see the roadway project completed and the detested traffic lights put to rest.
WASHINGTON MALL
The Washington Street Mall in Cape May is getting a facelift and work is underway. The trees were removed first, leaving a quick visual impact. Now the concrete, brick, and asphalt surfaces are being removed. After sewer lines, catch basins, and underground utilities are installed, concrete will be poured in front of each business. Then pavers will be laid, followed by pergolas and fountains installed. Finally, in April, trees will be replanted and the new look will be unveiled.
BOARDWALKS STILL OPEN
If you thought that the boardwalks in Wildwood, North Wildwood, Cape May, and Ocean City close up for the winter, you're in for a surprise. Several stores are open year-round on all four of the boardwalks. Others will re-opening on President's Weekend - this year February 16-18 - with things getting back into full swing by Easter Weekend (March 21-23).
OUR WEBSITE
If you haven't checked out our website recently, take a trip to JewellRealEstateAgency.com . You can access the local Multiple Listing Service, figure out mortgage payments, read years worth of our Newsletters, and even read a few short stories. Be one of the 6,000 folks who visit each month. It's informative and entertaining. You can't go wrong.
JEWELL REAL ESTATE AGENCY
We love to talk about real estate and our island. We're always glad to share our insights, observations, and vision with you.
Stop by our office at 5602 New Jersey Avenue and chat. Or give Joyce or Douglas a call at 609-729-8505. We answer phones 6am to 9pm EVERYDAY. That's service!
http://www.jewellrealestateagency.com/
Comments(6)