Permanent vacation

By Elizabeth Gehrman

Vacationers, beware: It’s that time of year when you’re most susceptible. You spend a week at a rustic camp in Maine or a few days in a cozy Cape Cod cottage, and – intoxicated by the sound of kids splashing at the dock, the heady scent of saltwater, the luscious taste of lobster rolls and soft-serve ice cream from the corner clam shack – the next thing you know you’re putting a down payment on the place next door. But what do you need to consider when purchasing a vacation home, and where are the top bargains right now?

Know When and Where to Buy

If you’re lucky enough to be able to purchase a second home, the generally depressed real estate market and historically low interest rates beckon. According to the National Association of Realtors’ Investment and Vacation Home Buyers Survey, released in March, the peak of vacation home buying occurred in 2006, with about 1.5 million properties sold nationwide. By 2008, the number of vacation homes transferred was less than half that. And when demand decreases, prices typically follow. The market does appear to be on the upswing: Last year, the number of vacation homes sold nationwide increased by almost 8 percent, to 553,000 from 513,000 in 2008, and the median sale price rose from $150,000 in 2008 to $169,000 in 2009. But that’s still down almost 17 percent from a high median sale price of $204,100 in 2004, and some very desirableNew Englandlocations have excellent news for buyers right now.

In Maine, for example, statewide prices for all homes have declined almost 16 percent, from a median of $194,000 in 2007 to $164,000 in 2009. InNew Hampshire, the drop was about 22 percent, withBelknapCounty– which encompasses Lakes Region cities and towns likeLaconia, Gilford, andBelmont– declining by 27 percent.

In Newport,Rhode Island, according to realtor Paul Leys of Gustave White Sotheby’s International Realty, a modest wharf-area condo might now go for as low as the upper $300,000s. “That wouldn’t be waterfront,” he says, “but it might be water view.”

And on Cape Cod, prices are down about 20 percent since 2005 – slightly more than the state as a whole, but that number depends in part on where you’re looking to buy. Mid-Cape seems to be the best bargain. “We are selling condos for prices that have not existed since 2000,” says Joyce Bearse, a realtor with Kinlin Grover inYarmouthPort.That’s because the condo market has taken a bigger hit than the single-family market and inventory is high across the board. “Right now, there are 224 listings in Dennis andYarmouthfor under $300,000. If I had done that search six years ago, it would have been two or three.” Bearse points out that prices may dip even lower now that the federal tax credit has expired, reducing demand, and as homes in foreclosure continue to come on to the market. “Even people at the high end can now afford a property they never could afford before,” she adds. “Now, instead of $1.5 million, that same property might be $1.2.” Even prices inProvincetown, with its easy access by fast ferry toBostonand its cosmopolitan feel, may surprise you. Century 21 Shoreland broker Rick Tourgee, for example, says he has a 1,300-square-foot two-bedroom-plus-den listed in a condo development called Seashore Park for $329,000.

“We don’t know when the bottom is until it starts going back up,” says Tom Kelly, the Seattle-based author of How a Second Home Can Be Your Best Investment, “but this appears to be close to the bottom.”

Analyze Your Needs

According to the National Association of Realtors survey, almost a third of buyers begin their vacation-home hunt by searching Internet sites like findashorehome.com, lakehouse.com, escapehomes.com, and homeawayrealestate.com. While 20 percent of buyers find their primary home through a friend, relative, or neighbor, or by driving by and seeing a sign in the yard, 28 percent of those looking for a vacation home get their most productive leads this way, suggesting that the idea of buying first enters people’s minds while they’re actually on vacation.

As you weigh the notion of taking on a second home, be sure you’d rather spend time in the same location every year than visit different destinations. “If you buy,” says Tony Giacalone of Tony’s Realty in East Boston, who owns a second home inPalm Springs,California, “you’re not just going on vacation. It gives you a chance to build up community someplace else. It gives you a new set of neighbors and a new set of activities, and gives your kids a whole new group of summer friends.” If you decide that’s for you, consider these points:

> Get to know your desired location before you buy. “If you’ve never been toMainebut you want to buy a place here,” says Tom Ferent of Mr. Lakefront Keller Williams Realty in South Casco,Maine, “well, we’ve got a big state. I always say come spend some time, because it’s a big investment.”

> Determine how you plan to use the property and how long you’ll hold on to it. “Families with kids buy a ski home and think they will come up every weekend to ski,” says Peter Tucker of Tucker Real Estate inStowe,Vermont. “But when the kids become teenagers, they may have different interests. Hockey is a good example. If you’ve got to be on the rink at 6 a.m. on Saturdays, it’s tough to come up for the weekend.”

> Decide whether you’ll want your vacation home to eventually become your full-time retirement home. It could help determine the features you look for, such as a first-floor master bedroom.

> Finally, consider whether you might want or need to rent out your place to help with costs. If so, study the rental market, going rates, and issues such as advertising options and cleaning services available in the area.

Compromise to Save Money

The best way to save money on a vacation property inNew Englandis by giving up one or two items on your wish list, starting, perhaps, with location. The mid-Cape, for example, has better deals than the lower, or outer,Cape, in part because it contains a broader range of properties. Bearse says a heated 900-square-foot two-bedroom ranch within a mile of the beach might go for less than $300,000. “And you can buy those small places, 450 or 500 square feet, for under $200,000,” she says. “Or if it’s half of a duplex, you could get 500 or 600 square feet for maybe $150,000. Just a place to hang your hat.” It won’t be a sprawling family compound, but with the right layout, 450 square feet can comfortably sleep four or five people.

In the Berkshires, Lenox, Stockbridge, Great Barrington, and Egremont are more expensive than, say, Lee or Becket. “Becket’s still an easy commute” fromBoston, says Beth VanNess, broker/owner of Gile Real Estate in Becket, “and it’s close to Tanglewood and all the other cultural amenities of the Berkshires.”

InNew Hampshire, Whitefield, for example, is less expensive than towns likeLincoln, whereLoonMountainis located, andLaconia. Whitefield is farther north but still just a short drive to the slopes, and it offers beautiful views, cute shops, decent restaurants, and fewer crowds. Even a small distance from your first choice can make a price difference. A recent Craigslist search on “Winnipesaukee cottage,” for example, yielded a 450-square-foot place with stunning water views about 2½ miles from hot spotWeirsBeachfor just $169,900. True, if you paid $80,000 or $100,000 more, you could probably just fall out of bed and onto Weirs – but what’s a short bike ride when you’re on vacation?

Scrutinize the Property

Once you’ve pinpointed a community you can afford, it’s time to fine-tune that wish list. Yes, you’ll likely have to compromise, but Ferent recommends looking for these criteria in a vacation home:

> A knockout view. “As you get older, you’re not as active on the water,” Ferent points out. “If an older person can get in anAdirondackchair and look at the sunset over the mountains, that’s really important.”

> A level lot. This kind of property – or, for lakeside homes, a sandy beach with gradual entry – appeals to a broader market than one with a steep slope.

> Proximity to the water. This can be a two-edged sword. In Maine, for example, all new construction has to be 100 feet back from the water – but, as Ferent points out, “you can’t watch the kids from the deck if you’re 100 feet back,” which might make an older home more appealing. Then again, in certain areas – near the open ocean and on river-fed (as opposed to spring-fed) lakes – being closer to the water may present flood hazards, so you need to inquire about special insurance before making your move.

> Privacy. Ferent contends that for a single-family home, about 100 feet of water frontage is needed for real privacy. “It really kills the atmosphere when you’re sitting on your deck and your next-door neighbor flushes his toilet,” he says. “If it’s 50 feet and the neighbors are on top of you, you’re going to have to really like people.” For some buyers, of course, living closer to neighbors is part of the fun; if you’re one of them, you might want to consider a cottage community or condo rather than a stand-alone house.

Ferent recommends that all the buyers involved – usually a committed couple, but sometimes two or three friends or relatives – take separate notes as they visit properties, ranking each of, say, five attributes on a 10-point scale. “I say, ‘Don’t share, but each of you come up with your top three,’ ” he says. “Often the husband and wife don’t agree on what they like,” but will have enough pluses in common to come to a decision.

Consider the Finances Carefully

By now everyone knows it’s tougher to get a mortgage than it was a few years ago, and for vacation homes it’s even worse. “You can buy a primary house for as little as 3 percent down,” says David Brennan, senior vice president for residential and consumer lending at Cape Cod Five Cents Savings Bank inOrleans. “But for an owner-occupied vacation home – that is, one you’re not planning to rent out – you’d need at least 15 percent down.” And you’ll need at least 20 percent down if you think you’ll get any income from rentals or if you need a jumbo loan, which in Barnstable County, for example, is $462,500 or greater and on Nantucket and the Vineyard, $729,750.

“What I’m hearing, at least here inCape Cod, is that more people are paying cash simply because there are no investment opportunities,” Brennan says. “Money market funds are paying nothing; the stock market’s up and down. I’m hearing from realtors that people are saying, ‘I might as well take the money out of my portfolio and pay cash or put down a very large down payment.’ ”

If you don’t have a sizable amount to put down, you might find a seller who is willing to carry part of your mortgage for a fixed period, allowing you to ask a smaller amount from the bank. “There are a lot of older people who’ve held these properties for a long time and are looking for consistent income in their retirement,” says Kelly. “You can make a lower down payment, and their qualifying standards won’t be as stringent as the bank’s.”

When figuring out how much you can afford, remember that your carrying cost, or the amount you’ll pay monthly, includes not only your mortgage, taxes, and insurance, but also maintenance, which can include unexpected surprises during the seasons you’re not watching over the place, and any extra insurance you may need because of the location – that flood insurance, for example, or additional homeowner’s insurance because your place is in a remote location far from a fire station or hydrant.

Go With Your Gut

While some realtors recommend taking your time to buy – after all, this is a discretionary purchase – just as many say you should grab the place you want when you see it. “I can’t tell you how many people say, ‘That first house was perfect for our needs, but we felt like we shouldn’t make an offer because we hadn’t done our due diligence,’ ” says Ferent. “And then they regret not making an offer because someone else buys it.”

To avoid longing for the one that got away, Ferent recommends being ready to take the leap once you do know what it is you’re looking for. “If it’s in your gut that you like the place and it’s in your price range, take it,” he says. “If you don’t, and someone else does, you’ll feel awful, and then on the rebound you might buy too quick. I’ll tell you how you know: If I call you in a week and tell you it’s sold, will you be sick?”

Once, the notion of owning two homes was solely for the wealthy. But now more middle-class baby boomers entering retirement are “trading down” from a big family house to two small abodes in separate states, according to real estate specialists.

“These aren’t rich people. … Yet they have traditional pensions that give them enough income to support homes in two parts of the country,” says Margie Casey, a veteran real estate broker and author of “Relocate at Retirement or Not?”

In a typical scenario, a retiring couple will first sell their large family house. Then they’ll buy a smaller home nearby for use as their primary residence. Finally, they’ll purchase a small, secondary residence in another state, most often in a resort setting.

Wherever they choose to live, most boomers want low maintenance, with exterior upkeep provided through a condo or homeowners’ association.

“People want the total freedom of ‘lock and leave’ homes,” Casey says.

Of course, many boomers lack the wherewithal to pursue a two-home retirement strategy, often due to financial setbacks in recent years. But Casey says those with enough money are willing to spend it in order to enhance their retirement lifestyle.

Here are a few tips for those considering a two-home retirement dream:

•First check out the financial implications of your plan.

Casey, who reviews retirement communities, says anyone considering two-home ownership should first discuss the financial implications with a professional adviser.

“A planner can help you calculate what you can afford and give you a second opinion on your plan,” she says.

On paper, it should be no more expensive to own two small units than a single large one. But in reality, dual homeownership can be more expensive after you take into account homeowner’s association fees and transportation costs.

Local taxes are also a big factor, especially in today’s tough times, where cash-strapped municipalities are frequently raising them.

“Once you investigate the taxes, you may decide to live one state away from your grandchildren, assuming that lowers your cost of living,” Casey says.

•Think through the choice of a condo as one of your two homes.

Michael R. Crowley, a real estate broker and past president of the National Association of Exclusive Buyer Agents, says homebuyers considering the purchase of a condo should exercise caution.

As an example, he tells of a married couple he advised on the purchase of retirement property in Hawaii. The couple chose a condominium development that seemed attractive. Before they concluded a purchase there, however, they rented a unit as a trial run.

“After a brief time renting, they realized they hated condo living. It felt way too crowded to them. They were glad they’d tried it out before actually buying,” Crowley recalls.

As he notes, there are other options for small-scale living that provide many of the worry-free features as a condo-apartment.

For instance, in many “planned unit developments,” you can buy a one-level detached unit that comes with exterior maintenance, including a lawn service, Crowley notes.

•Consider transportation before deciding where to relocate.

Many a retiree has selected an idyllic retirement setting without taking into account airport access, which is a major mistake, Casey says.

Relying on an out-of-the-way airport makes it harder to travel to distant locations for vacation or to see your offspring. It can also add to your transportation bills.

“Try to live near an airport that’s a hub for one of the major carriers. That can save you a ton on air travel costs,” Casey says.

Another transportation factor to consider is proximity to major interstate roadways.

“Most retired people want to live within a two-hour drive of their grandchildren,” Casey says.

•Avoid high expectations for visits with your offspring.

“Living near the grandkids is the No. 1 thing for a lot of retirees,” Casey says.

Still, she cautions those choosing a retirement habitat to be realistic about their expectations on how often they’ll see family, no matter how close they live.

“Your kids have busy lives. Sure, you can hope to see them often. But don’t focus your whole retirement lifestyle on seeing family. First and foremost, choose the lifestyle that works for you,” Casey says.

•Remember the benefits of two-home living.

One reason retirees like owning two abodes is that they can take advantage of two distinct climates, avoiding harsh winters and interminable summers

By living in two places, Casey says, many retirees have “the best of both worlds.” They can choose a primary setting near family and a secondary one that satisfies their desire for intellectual stimulation, perhaps in a college town where they can enjoy classes, lectures and cultural events.

For instance, Casey cites low-cost courses available to seniors on many campuses through the Osher Lifelong Learning Institutes, www.osherfoundation.org Buying a home near a college town offering such classes can enrich retirement.

Obviously, not all retirees are suited to living in two homes. Some prefer a sedentary life with little travel involved. But many others thrive on a dual-town lifestyle, Casey says.

“Living in two places can be exciting. The change of going back and forth is stimulating. And that’s good for a lot of people,” she says

Sea Isle City Real Estate for Sale

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.

With signs of improvement in the housing sector already emerging, participants expect to see housing starts nearly double by 2014 and project home prices will begin to rise in 2013.

The average home price, which has declined somewhere between 1.8 percent and 4.1 percent over each of the past three years, according to FHFA data, is expected to stabilize in 2012, followed by a 2 percent increase in 2013, and a 3.5 percent increase in 2014.

Single-family housing starts are expected to rise from 428,600 starts in 2011 to 500,000 in 2012, and jump to 800,000 in 2014.

The unemployment rate is expected to continue falling, with the rate dropping to 8 percent by the end of 2012, 7.5 percent by the end of 2013, and 6.9 percent by the end of 2014.

GDP is expected to grow by 2.5 percent in 2012 and grow to 3.2 percent in 2014.

But, with the improving economy is inflation and higher interest rates. These rising rates will increase costs for investors, and those surveyed do not expect substantial increases in real estate capitalization rates for institutional-quality investments (NCREIF cap rates), which are expected to remain steady at 6 percent in 2012 and 2013 and then rise slightly to 6.2 percent in 2014.

By property type, National Council of Real Estate Investment Fiduciaries (NCREIF) total returns in 2012 are expected to be strongest for apartments (12.1 percent), followed by industrial  (11.5 percent), office (10.8 percent), and retail (10 percent).

By 2014, returns are expected to be strongest for office (10 percent) and industrial (10 percent), followed by apartments (8.8 percent) and retail (8.5 percent).

ULI CEO Patrick L. Phillips advised that while the ULI Forecast suggests that economic growth will be steady rather than sporadic, it must be viewed within the context of numerous risk factors such as the continuing impact of Europe’s debt crisis; the impact of the upcoming presidential election in the U.S. and major elections overseas; and the complexities of tighter financial regulations in the U.S. and abroad.

“While geopolitical and global economic events could change the forecast going forward, what we see in this survey is confidence that the U.S. real estate economy has weathered the brunt of the recent financial storm and is poised for significant improvement over the next three years.,” said Phillips.

Non-housing sector growth, according to the ULI Forecast, which was conducted from February 23 to March 12, 2012

-For the apartment sector, year-end vacancy rates are expected to decline further in 2012 to 5 percent, and then rise slightly to 5.1 percent in 2013 and to 5.3 percent in 2014.

-Apartments are expected to show strong rental rate growth, rising 5 percent in 2012, then slowing down to 4 percent in 2013, and 3.8 percent in 2014.

-Issuance of commercial mortgage-backed securities (CMBS) is expected to increase from $33 billion in 2011 to $40 billion in 2012, $58 billion in 2013, and $75 billion in 2014.

-Ten-year treasury rates are projected to rise to 2.4 percent by the end of 2012, 3.1 percent for 2013, and 3.8 percent for 2014.

-Future equity REIT returns are expected to rise to 10 percent in 2012, then drop to 9 percent in 2013, and 8 percent in 2014.

-Returns for institutional-quality direct real estate investments are expected to trend lower, with returns of 11 percent in 2012, 9.5 percent in 2013, and 8.5 percent in 2014.

-Hotel occupancy rates are projected to increase to 57 percent by 2012, 58.2 percent by 2013, and 59.2 percent by 2014.

-For the industrial/warehouse sector, vacancy rates are expected to decline steadily over the next three years to 12.8 percent by the end of 2012, 12.1 percent in 2013, and 11.5 percent by the end of 2014.

Much has been made recently of the government’s renewed efforts to spark the housing market from its dismal slide, however we fear there are yet more unintended consequences lurking just around the corner. The various ideas being posited for a broad REO-to-rental program is one of these steps as BofA points out in accommodating the dramatic shift from ownership to renting (with 4.2mm new renters and 1.2mm fewer homeowners since the end of 2006). Of course removing foreclosures from the for-sale market reduces competition for voluntary sellers – which should help to support prices for non-distressed homes but here is where the crux of the unintended consequence lies.

We have a squatter epidemic. There are millions of ‘homeowners’ currently living mortgage-payment-free (by choice) who will soon be forced (as the foreclosure process ramps up post-settlement) to pay rent (since they will not qualify for a mortgage). This will have the double whammy effect of reducing overall discretionary consumption spending (as rent is greater than ‘free’ – unless the cardboard box is preferable) and driving inflationary forces into rental costs (something we are already seeing). Of course these are the much larger second-order effects and we will only be told of the primary benefits of clearing foreclosure inventory, but at the margin (along with gas prices) the household will have less discretionary iPad-buying ammunition as opposed to more.

Since the end of 2006 there are 4.2 million more renters and 1.2 million fewer homeowners…

Distressed property prices continue to turn down (and re-accelerate) as the foreclosure pipeline starts to unclog…

7% Jump in US Median List Price
For-sale housing inventory drops 22%, near a 2-year low

Data courtesy Inman News.

Median list prices jumped 1 percent or more on a year-over-year basis in February for about 73 percent of the 146 markets tracked in a report released this week by Realtor.com.

On a national basis, the median list price rose about 7 percent year over year in February.

Among the top 10 markets for the highest year-over-year hike in list prices in February, seven were in Florida — Miami topped the chart with a 26.2 percent increase, according to the report.

The median list price of homes tracked by Realtor.com rose $2,500 between January and February 2012, to $188,000, which is 6.82 percent higher than the median list price was a year ago when it was at a two-year low. February 2012′s median list price is on par to what it was in February 2010.

Only two markets showed a year-over-year increase in for-sale inventory, according to the data: Philadelphia and Springfield, Ill.

With the project substantially completed, the City will be coordinating with representatives of FEMA to obtain reimbursement of 75% of the eligible costs of the project. The beach-fill and dune reconstruction from 1st to 15th and 40th to 52nd Street was previously determined to be eligible for FEMA reimbursement, based on the damages that had occurred in a November 2009 storm event, which was a federally declared disaster. The beach from 30th to 40th Street, while not eligible for FEMA funding, was 75% funded by the State of New Jersey, as the City was successful in its efforts to obtain available funds from the state’s dedicated shore protection funding source.

Please see photos below of Sea Isle’s beach replenishment efforts and new dune fencing…

Phase 2 of Excursion Park, Beach to Bay Corridor – This project involves streetscape improvements to the public corridor along JFK Boulevard from the Promenade to Landis Avenue, and widening of the sidewalks along each side of this corridor by 3 feet. The contractor, Fred M. Schiavone Construction, is in the process of placing the surface pavement, in efforts to open up the street for the coming weekend. The landscape planter walls, landscaping, sod and sidewalk pavers have been substantially completed for the entire project. New, relocated utility poles have been placed; and the electric, cable, and phone utilities are scheduled to relocate the overhead wires over the next two weeks. Delivery of the new, decorative light poles is scheduled for April, at which time the project will be able to be completed.

Please see photos below of Phase 2 construction, taken earlier this week…

Demolition of Existing Library / Beach Tag Facility and Conversion to Parking Lot – NO CHANGE FROM PREVIOUS UPDATE – Demolition of the old library facility will start in April. Construction of the parking lot will follow immediately afterwards. The completion of the parking lot will be prior to Skimmer Weekend (June 16 and 17).

Construction of Welcome Center Addition to the Community Lodge and Renovations of the Existing Lodge Facility and Site – The contractor, R. Wilkinson and Sons, has completed piling installation for the Welcome Center addition and the handicapped access ramps. Renovation work inside the Community Lodge is in progress, to completely rehabilitate the restrooms. The City has relocated the Lodge activities to the former Library Building; and the renovation work in the Lodge will be complete in order to allow re-entry into the Lodge at the end of March. The Welcome Center addition is scheduled for completion by mid-June. The project will provide for improved heating, ventilating and air conditioning in the existing lodge; improved restroom facilities that comply with handicapped accessibility requirements; improved access to the lodge that also complies with handicapped accessibility requirements; and a complete addition of a Welcome Center. The project is the culmination of several years of public discussion about the need for a Welcome Center, as well as the need for continued utilization of the current lodge facility.

Improvements to T.I. Park – The contractor, Axios, Inc., has completed framing for the new decks and ramps and is in the process of installing the deck on the access ramps. The project involves replacement of all the ramp and pavilion decking with Timbertech (plastic material similar to that used at the Marina); replacement of the wood railing with aluminum; addition of a handicapped ramp at the southern end of the park; and other various improvements to the facility to ensure compliance with the Americans with Disabilities Act. Given the magnitude of the work and the removal of existing ramps and accesses, in order to ensure public safety, the park will be closed to public access while the construction takes place. The project is expected to be completed by early April.

Please see photos below of T. I. Park, taken March 6…

Lagoon Dredging – On February 14, City Council authorized award of a contract to Wickberg Marine Contracting, of Belford, NJ, in the amount of $719,336. Letters have been issued to property owners adjacent to the lagoons, advising them of the particulars of the project, and providing contact information for the contractor, in the event the property owners wish to participate in the project.

The current status of the project is as follows:

*The contractor has mobilized his equipment on site and has started construction of dike walls in the dredged material disposal area, located west of the library, adjacent to Rio Grande lagoon (Rio Grande is along 47th Place). Dike construction will take approximately 6 weeks.
*Dredging of Rio Grande Lagoon and a portion of Rio Del Isole (along Venicean Road) will take place from about mid-April through May.
*Dredging work will cease over the summer and re-commence after Labor Day, when the remainder of the lagoons will be dredged.

The lagoons to be dredged are as follows:
Rio Grande (south side of 47th Place)
Rio Delle Stelle (between 46th and 47th Place)
Rio Delle Luna (between 45th and 46th Place)
Rio Del Amore (between 44th Street and 45th Place)
Rio Delle Isole (along the east side of Venicean Road)
Rio Del Barache (between 43rd Place and 44th Street)
Rio Del Affare (between 42nd and 43rd Place)
Rio Delle Ponte (along Park Road on either side of 43rd Place)

The project provides for the ability of private property owners adjacent to the project area to enter into an agreement with the successful dredging contractor to dredge their private slips (at the private owner’s expense).

Please see photos below of the preparation efforts at the dredge disposal area adjacent to Rio Grande Lagoon, taken March 7…

Sewer and Road Reconstruction on Central Avenue (49th to 69th Street) – The project has been contracted to the firm of Lewandowski Construction Industries, Inc., of Waterford, NJ, and will be performed in two phases. The first phase is from 49th to 63rd Street (prior to the 2012 summer season) and the second phase is from 63rd to 69th Street (following the 2012 summer season). The project will rehabilitate or replace the deteriorated underground sewer system, as well as provide for reconstruction of the entire one mile stretch of roadway. The contractor has mobilized on site, and is currently working between 60th and 63rd Streets (traffic is currently detoured between 60th and 63rd on Central Avenue). Work will proceed through the spring, then be halted for the summer. The current plan includes installation of the required manholes and sewer lines, along with reconstruction of the street surface from 63rd to 49th Street, prior to the summer season.

Please see photos below of the construction on Central Avenue near 63nd Street…

Utility Reconstruction on Landis Avenue (54th to 69th Street) – The project has been contracted to F.W. Shawl & Sons, of Marmora, NJ, and will provide for water and sewer line replacement in advance of the County project to resurface Landis Avenue from 54th to 69th Street. The contractor has started to mobilize on site and work will start this week. The project is scheduled to be completed around mid-May. The County is scheduled to resurface Landis Avenue, from 54th to 69th Street, either in the fall of 2012 or spring of 2013.

Inflow and Infiltration (I & I) Remediation –The firm of Video Pipe Services, Inc., of Newfield, NJ, is in the process of performing work associated with internal repairs of sewer pipelines and manholes throughout the City. The portion of the project involving sealing of sanitary sewer mains has been substantially completed. Repair and lining of sewer laterals identified as needing corrective work is in progress, and that work is now scheduled to be completed in April, which will complete this phase of the I & I remediation. The need for this project was identified over the past several years through a comprehensive investigation and analysis of the City’s sewer system. Sewer systems are prone to both inflow (overland water entering the sewer system through manhole covers and other surface openings in the system) and infiltration (entry of groundwater into pipelines through cracks, deteriorated pipe, and pipe joints). The effects of I & I are symptoms of deterioration of the sewer system that must be corrected to avoid more problematic maintenance issues and potential failure of the sewer system. I & I is also costly, in that the City must pay for the unnecessary treatment of water that enters the sanitary sewer system. This is the first phase of a multi-year citywide sewer maintenance and improvement project that will ensure the continued viability of the City’s vital sewer infrastructure. As indicated above, this project is expected to be completed by April. The next phase of I & I work will involve replacement of sewer lines that cannot be corrected through internal, “no-dig” repairs, as are being performed in this phase. As those projects are engineered and prepared for bidding and construction, we will provide updates on the specific details of the projects.

Utility Reconstruction, Various Streets – The City is in the process of preparing plans and specifications for a project to replace deteriorated underground utilities (water and sewer) in several streets as part of its comprehensive road and utility program. The following streets are currently being engineered for utility work in order to put the project out to bid; and the City expects to advertise for construction bids within the next three weeks. The work will be completed in the spring, with a summer hiatus and a fall completion. Following utility work, the streets will receive new surface paving. The following streets are included in this project:
1. 50th Street, Landis Avenue to Promenade
2. 51st Street, Landis Avenue to Promenade
3. 60th Street, Landis Avenue to Central Avenue
4. 43rd Place street-end with guide rail barrier
5. 42nd Street, Landis Avenue to Promenade
6. 79th Street, Landis Avenue to Central Avenue
7. 60th Street, Landis Avenue to Beach End
JFK Boulevard Reconstruction, Bridge to Landis Avenue – The County has been working with the City for design of the project to reconstruct and reconfigure JFK Boulevard from the Bridge to Landis Avenue. The project limits also include reconstruction of Landis Avenue from JFK Boulevard to 40th Street. The project scope will include the addition of widened sidewalks, decorative lighting, streetscape improvements and landscaping, drainage improvements, and elevation of the road surface, which will assist during times of flooding. The County Engineer and the design engineering firm of Urban Engineers (which is under contract to the County), along with the City Engineer, made a presentation on the JFK Boulevard project on March 7, 2012 in council chambers, at which those in attendance were informed of the project details and the proposed timing of the project. The meeting was attended by approximately 30 members of the public and the media, with the opportunity for questions and concerns to be raised. The engineers addressed issues relative to drainage, traffic, the proposed elevation of the road surface, changes to the road configuration, and the new streetscape. The project involves federal funding, and the next step is for the County to obtain authorization from federal and state agencies to proceed to bidding. If authorization is received, the County will put the project out to bid by July in order to award a contract for a fall 2012 construction start. In this event, construction will take place between October 2012 and May 2013.

Paving of 43rd Street from Landis Avenue to Park Road – The City will receive bids for construction of the project on March 14. The work will involve final re-surfacing of the street. This paving project will finalize a complete reconstruction of this section of 43rd Street, which previously received new water and sewer lines. The paving work will be completed prior to the summer season.

The housing market shared in the summer economic slump, brought on by the downgrade of the U.S. credit rating, impotent congressional squabbling over deficit reduction and Europe’s self-inflicted debt crisis.

This single-family house on Simpson Avenue in Ocean City was among the homes in the region that sold during the third quarter for the median price, $220,000.

Home prices fell again, but by less in the southern New Jersey shore market, the latest data from the National Association of Realtors show.

Home sales, though, increased everywhere from a year ago — up 13 percent in New Jersey — helped by record low mortgage interest rates.

In the Atlantic, Cape May and Cumberland counties region, the median home price in the third quarter was down 3.8 percent from a year ago to $220,600.

That was better than the 4.7 percent decline nationwide and 6.5 percent drop in the Northeast.

Anthony D’Alicandro, president of the Atlantic City & Atlantic County Board of Realtors and broker/owner of Coldwell Banker Casa Bella Realtors in Linwood, said the price drop is a function of supply and demand, with too much inventory and too many distressed properties on the market.

Another factor is low consumer confidence, which is lower than it was in 2008, he said.

But overall, D’Alicandro said he feels good about the housing market and “the little bit of growth we’re seeing.”

A healthy market grows slowly, as it did in the early 1990s, he said, not like the housing bubble in the following decade that ended in the current oversupply.

“We will see an initial decline in prices, and then nine to 12 months from now, we’ll start to see true stabilization and a little bit of growth by the end of 2012,” D’Alicandro said.

Mortgage rates that remain about 4 percent will continue to motivate buyers as long as they last, and the shore region will remain an appealing market to home buyers, especially those looking forward to retirement, he said.

“We have an attractive place to live, near the shore, with lots of things to do, near the big cities of Philadelphia and New York, with a nice climate, and we’ve seen a tremendous increase in the quality of health care, which is important,” D’Alicandro said.

Jarrod Grasso, the chief executive officer of the New Jersey Association of Realtors, expressed a similar sentiment about the statewide market in explaining the strength of New Jersey home sales.

“The resiliency of Garden State infrastructure and industry, plus our location between the New York City and Philadelphia markets, places us in a strong position for employment and stability,” Grasso said in a statement.

Thanks to low mortgage rates and fallen housing prices, home affordability continues at record-high levels.

NAR’s Housing Affordability Index was 183.8 in the third quarter, the highest ever except for the record level in the first quarter this year. The index gauges how readily those with a median income could afford a mortgage for a median-priced home. The median is where half are higher and half lower.

A third of home purchases in the third quarter were for cash, and two-thirds of those cash buyers were investors, the Realtors said.

D’Alicandro said that with rents for homes soaring, housing makes sense as an investment again. “We’re seeing rates of return in the 9 percent to 11 percent range.

Distressed properties — either short sales or foreclosures — made up 30 percent of home sales in the quarter, down from 33 percent in the second quarter, the Realtor survey said. Those houses typically sold at a discount of about 20 percent.

D’Alicandro said that while there is a large backlog of distressed properties from the legal system’s slowdown of foreclosure processing, he doesn’t expect those to undercut demand much for normal homes.

“If you think about a 28-year-old who is exceptionally good at writing HTML code, I don’t know that he wants to buy the house that’s been sitting vacant for three years,” he said.

The 3.8 percent decline in the regional home price follows a 5.8 percent increase in area home prices in the second quarter.

The current median price in Atlantic, Cape May and Cumberland counties is about the same as it was in 2009, and 13 percent lower than it was in 2008.

By JOEL LANDAU Staff Writer Press of Atlantic City

GALLOWAY TOWNSHIP — Joe and Stephanie Tucci spent a year and a half looking for the right house.

And six months after submitting a bid, they’re still waiting and waiting and waiting to find out whether it will work out.

Stephanie and Joe Tucci, of Mays Landing, stand in front of a Galloway Township home that they hope to buy in a short sale. They submitted a bid six months ago and have been waiting for bank approval.

The township home that the couple bid on is a short sale, which means the owner of the house could no longer afford to pay its mortgage and is working out a deal with the lender to sell at a price lower than what the owner owes. When a potential buyer makes a deal with the seller, the lender’s approval is required for the sale to take place.

Local real estate agents say short sales are becoming a larger part of the local market and can often translate into a lower price for a buyer willing to be patient.

“People walk away from short sales because they get tired of waiting,” said Robert Shamberg, owner of Prudential Diversified Realty in Galloway Township. “Everyone wants a deal. Everyone knows short sales are a good deal. But they may not realize it takes a lot of time.”

The home could have several lenders that all need to be satisfied, Shamberg said. The bank could take longer than expected to give an answer or make a counteroffer, he said.

Shamberg counseled Joe and Stephanie Tucci through the process and said they could get a good deal if they were willing to wait. The couple placed a bid at $200,000, which Shamberg said is about $50,000 less than a realistic market value.

But sellers and banks are often willing to accept less rather than go through the long and costly foreclosure process.

That’s the hope of the Tuccis, who fell in love with the home that was recently renovated and features an open kitchen and cathedral ceilings. The couple placed the bid in April and hope to hear within the next few weeks.

“You can get a really good deal but you have to have time,”Stephanie Tucci said.

The couple has continued renting in Mays Landing and have looked at some other homes as a potential backup plan.

“It’s just a waiting game,” Joe Tucci said. “Hopefully they’ll take our bid or they’ll lose out and have a vacant property.”

Brenda Lawn, a real estate agent for Prudential Fox & Roach in Northfield, said short sales are an “absolute roller coaster”that can take an emotional toll on the buyers.

“The first thing I do is educate them. I tell them it’s a long process and there will be a certain degree of frustration,” she said. “It’s hard to do that. The buyers are so enthusiastic. But it really is difficult because it doesn’t always have a happy ending.”

Lawn said short sales and foreclosures have taken up as much of a third of the housing market in most of the region.

She said she’s had buyers wait between three months and a year for the bank to approve a deal, but Jeff Quintin, of Prudential Fox& Roach in Ocean City, said he has had some recently that took only a few months.

Conducting a short sale “is a skill providing you know how to manage the lenders and structure the deal properly,” he said. “If you know what you’re doing and get it structured the right way, a short sale can be like a typical sale.”

Quintin said larger banks may not open the file on the property until the bid is submitted, so it’s impossible to know what the bank would accept.

“In most cases there is not a predetermined (price) for the short sale unless you have already gone through the process,” he said.

But a short sale is often worth it to the bank considering it can take more than two years to foreclose on a property owner, Quintin said.

“You never know what a bank will approve,” he said.

Short sales also benefit the seller because they avoid foreclosure and leave the seller in a better position than if they waited to get more money on the sale, Quintin said.

“Their credit may go down 100 points but they can improve it faster than the market can improve itself,” he said, adding many sellers are finding it too difficult to redo their loans.

And the program has had its results.

Quintin said he recently had a home valued at $4 million approved for a $1.425 million short sale in Ocean City. Another Ocean City property valued at $2.765 million closed at $780,000, he said.

“The buyer is always getting a property under market value,” he said. “It’s worth it many times to go through it.”

By Jeff Reeves, editor for InvestorPlace.com

Now could be the best time in history to buy a home. Presuming, of course, you have the money and the credit to do so.

The average rate on a 30-year fixed mortgage hit record lows last week, down to 4.01%, according to Freddie Mac. The Federal Reserve’s recent “Operation Twist,” which was designed to do just this, appears to be doing the trick.

There are a lot of reasons to consider buying a home right now. The big savings on interest is just one of them — the difference between a 4% rate and a 5.5% rate on a $200,000 home loan is just shy of $200 in monthly payments and can save a homeowner more than $60,000 in interest payments across the life of the loan.

Another motivating factor could be the fact that rents remain sky-high in the U.S. right now, and in many markets it’s actually cheaper to buy a home than rent a two-bedroom apartment.

While housing might not be at a “true” bottom just yet, there are many signs it is nearing one in many markets. Housing prices rose from June to July in 17 of 20 cities tracked by the Standard & Poor’s/Case Shiller home price index. It marked the fourth straight month of rises in most U.S. cities.

That’s to say nothing of the case-by-case bargains to be had. Here are two personal stories that show the opportunities to be had in this housing market:

I live in the Washington, D.C., area and purchased a short-sale home in 2009. Although three months of back-and-forth with the bank drove my wife and me crazy, we finally closed on the property just hours before a foreclosure auction — after which my Realtor asked if I wanted to immediately re-list my home with him for about 30% more than we had just paid. I had purchased the property for a growing family and good schools, so I politely declined. But the message was clear: If you suffer through a painful distressed property purchase, you get a hefty discount for your trouble.

On the other side of the coin, my brother purchased a newly constructed home in Roanoke, Va., as his wife attended medical school at Virginia Tech. Seemed like a good idea at the time — but now he’s 40% upside down on his house and renting it for barely enough to cover the mortgage. Unfortunately, he now lives six hours away, so it’s no picnic to manage his rental. My brother recently decided he has enough stress in his life so he will list the house at slightly below market rate just to get rid of it — even if it’s going to cost him big-time. Very bad for him, but some lucky southwest Virginia family is going to get a nearly brand-new home for a heck of a deal.

I’m sure many of you have your own story to tell about the housing market. Share it with me (see below) or better yet, post it in our comments section so everyone can read and weigh in.

There are plenty of other bank-owned homes or desperate sellers that folks can pursue, with deals akin to the two listed above. But the million-dollar question, of course, is whether prospective homeowners can get a loan — and if they can, whether they want one.

After the mortgage meltdown, banks have wisely tightened lending standards . That’s as it should be, but it understandably shuts many folks out of the market. Other people have good credit but don’t have the necessary savings for higher down payments some lenders now require. That’s to say nothing of folks who perhaps could sign up for a new home but are just too uncertain about their job or retirement.

Whatever the reasons, it all adds up to a decided lack of demand in the housing market. Many factors have created great deals right now, but those factors also might just be too daunting for many to overcome right now.

I remain convinced that I made the right choice in buying my home — not because it was an “investment,” but because it’s in one of the best public school systems in the country and I now have two beautiful daughters who wouldn’t fit very comfortably in an apartment. And by the way, that two-bedroom apartment rented for only about $100 less a month than my current mortgage. Buying a home was the right thing for my family, and for my finances.

And perhaps that’s the biggest lesson of all: The best reason to buy a house is because it will become your home — not a path to profits.