Buying A Shore Property ... in Ocean City, New Jersey
(This is the 5th and final blog posting related to this topic ... "buying a shore property in Ocean City.")
We started this topic by indicating it was a very good time to buy a shore property in Ocean City, New Jersey. We reviewed a number of factors with one of the major ones being the exceptionally low mortgage rate now available to many buyers. We also highlighted the improving and increasing market stability here in OC particularly in the single family home market, but also the larger and again improving condominium market.
Often I tell Buyers that many people tend to have a 1-5 year range as they pursue their goal for a purchase of a shore property here in Ocean City (NJ). I try to work with that projection, but I also try to better understand the time frame as we talk about it. No one should rush into any financial aspect ... but right now it should be understood that "it is a very good time to be considering this type of purchase." Obviously, one must review all of their other financial obligations, their financial portfolio to determine that this might fit into their short and long term plans. Clearly, it is a significant "life style change" for buyers when they take on this type of financial obligation as well as the individual and/or family commitment to own a property away from their place of residence.
It's also important to understand that real estate is "local," not national. By that, I mean that newspapers and magazines often talk about real estate from a national perspective ... i.e. "the housing market," or "the present situation in housing across the country." However, all housing must be reviewed from "a local perspective." An example: when we lived in Lancaster County ... one of my goals before giving up our 4BR/2.5BA single family property that we purchased for about $65,000 back in the 1970s was to sell it for over $300,000. That didn't happen because that area was very slow to appreciate. But it was also hardly ever impacted by the major downturn across the country.
I also try to explain the nature of "a resort market," which is entirely different from the normal housing market. Again in Ocean City (NJ), it has been a much more "out of the mainstream type" market ... one that has had a lot of ongoing stability particularly in the single family property category. And although resort markets were all hit to some degree back in 2005, we continued to move along selling properties on a regular basis throughout the 2006 through 2009 time frame before we saw a hit of a returning condominium market.
My personal feeling is that Ocean City will again see some market appreciation ... let me share just a few thoughts. I'm a Northend and Gardens listing agent ... and I sell a majority of property in this area. I have observed the past two years in single family properties changing with a lot of $500,000 and lower properties getting sold in 2009, and a lot of $600,000 range properties getting sold in 2010. So we now find ourselves in a situation where some of these properties are still out there, but not nearly as close to the beach side of the island. In other words, it is much more difficult to find a single family property in decent shape under $1 million today. Possible ... but difficult in that particular area. That market is tightening up.
Condominiums are still an exceptional buy at this point, but the numbers are coming back into line ... that means less sale property to select ... possibly a slowly increasing price point. Now all of this takes time ... but if your financial portfolio suggests room for a shore property purchase - "now is the time." dap
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