What kind of Real Estate Market Can We Expect this Spring (2009) in Ocean City, New Jersey?
Real Estate Markets across the country are all asking that same question. One very quick response would be to have each of us carefully review and analyze our present market. In the case of Ocean City, New Jersey we had a slower Fall Market with the national economic and financial news that just caused most of us to slow down or stop. For us, that was followed by two holiday months (November and December) and the two slow winter months (the beginning of the 2009 calendar year - January and February). For Ocean City the slowdown starts about Thanksgiving and continues to about the close of the professional football season with the Super Bowl.
So really the only difference we experienced was the impact of a weak national economic situaiton, terrible stock market news, and the general fear factor across the country. But overall in Ocean City, we were experiencing the past 3 six-month periods being a great deal of improvement as compared to the 2006 calendar year. It would have been a good final six months in 2008 if the national impact had not happened.
Our sale property inventory, those properties listed on the Multiple Listing Service for Ocean City reflected a much lower inventory taking us back into the 2005 mid-year range ... something that many local areas across the country might be wishing they were having. Of course, the mortgage rates were looking low and moving lower as well. Finally, the types of Buyers that we normally attract here in Ocean City are probably ready to use some of their stock market monies (probably out of the market anyway) for a second home or investment property. Although this has not been a typical situation ... normally when the stock market sinks, many Buyers make investment decisions in real estate here at the shore.
Finally, many Ocean City property Owners have been looking to move up ... note: at our open houses which we have held from the Fall months through the holiday months into the New Year. Why? Because these savy Owners know what a lot of real estate agent in town have been saying: "If you are going to buy a shore property in the next three-to-five years, buy now." Why again? Because we can't predict when the next market appreciation will hit ... we can only say that it will be here sooner than one might think.
That's the background ... let's move to the Spring, 2009 "Buying Season." Traditionally, Ocean City has had two buying periods per year: the "Spring Buying Season" from the end of February to the middle of June ... the longest and best one. This is the pre-summer period when you buy a rental property and collect the summer rents, or you buy your second home and experience all the reasons for having it all summer; and the "Fall Buying Season" from Labor Day (and the close of the summer season) to Thanksgiving and the holiday season. Often in the Fall you can pick up some rental properties because the owners have made their money for the season and make do a better deal.
There are really two types of property categories right now of note in Ocean City: single family and condominiums. There are about four times the number of condos for sale over singles. Although some condominium sale properties hit the high price points ... almost all single family properties are at that point already. Clearly, the entry level purchase is usually the condominium ... coming in all sizes, shapes, conditions, and locations.
I won't go completely out on the limb ... but I think it will be a good "Spring Buying Season." Hope you make it down here to find out. Dap
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