There has never been a better time to take full advantage of current real estate market conditions than now. In a buyers market opportunities to purchase properties for less than market value are plentiful. What we are living through today is a dream come true! This is an extremely rare occurrence that few experience and have the courage, insight to take advantage of.
The clock has been reset on property values across the board, particularly at the Jersey Shore (especially in the Wildwoods). Homes and condominiums at the shore are widely available today at prices similar to what you would have paid in the early 2000’s. There are a number of factors that contribute to this situation. The primary factor is the influence of “distressed sales” on the market place.
A distressed sale is generally considered to be a sale offering of a property whose owner is unable to continue to pay the mortgage and other related expenses pertaining to the property commonly known as a pre-foreclosure. In addition it may also be a property offered for sale by the bank or entity that owns the mortgage in most cases post foreclosure.
There are many factors that contribute to the creation of a short sale situation. The primary factor is that the property no longer brings a price in the present day market place that will equal or exceed what is owed to the lender. In order to sell the property “short” the lender must agree to allow the property to sell for less than is owed to them. Therefore the sale is contingent on the lender and or third party’s approval (in some cases there may be a second mortgage and or additional creditors.
In general the properties that are currently offered as short sales in the beach communities of Cape May County are newer condominiums and townhouses, many in locations that offer direct ocean, beach and or bay views!
Considering that current real estate market conditions offer up to 50% discounts from previous high values in the area; together with mortgage interest rates lower than we have seen in decades, add to these sellers who are motivated to sell and must reduce debt obligations the result is the “perfect storm buyers market”!
Knowing the current market helps potential buyers to maneuver the terrain of the different shore towns. Over the past 12 months we have been bouncing off the muddy bottom. I coined it that because there are many circumstances that define the very different price points. Pricing should be stable for the next six to nine months as the distressed inventory is evaporating.
This is the reason you want to speak with an experienced full time agent that is working in the marketplace that will tell you like it is. The market had been steadily drifting for a seven year period and this is now the turning point. Don’t take my word let’s make some offers and see that the sellers are content to sell their properties at a reduced price but have seem to hit a barrier.
This folks is the best news you can hear, prices have stabilized and will now be steady for the foreseeable future. Its time to get off the sidelines before the buyers market will be over. At least you can say you bought a shore home near the bottom, approximately 25% below the manic market top.