The Jersey Shore region saw median sale prices of homes increase last month, according to the Long & Foster Real Estate Market Minute Report. The median sale price rose by 31% in Atlantic County and by 16% in Cape May County. Year-over-year home sales experienced no change in Atlantic County but rose by 46% in Cape May County. The number of homes available for sale continued to drop throughout the region.
Despite the current economic climate, the housing market has recovered remarkably this summer and is expected to continue its upward trend into the fall. “We’ve seen different buying patterns with so many people working from home now,” said Gary Scott, president of Long & Foster Real Estate.
The pandemic has caused many people living in urban centers to flock to the suburbs to have more space and be away from crowds. Since more people are working remotely, the need for a place with separate areas for work and relaxation have become essential.
“People are purchasing vacation homes within driving distance of their primary homes,” said Scott. “Real estate sales at the beaches are at or near an all-time high.” Demand for homes in other areas is also incredibly strong, while purchasing power has never been better.
Average fixed mortgage rates continue to be historically low and the risk of a foreclosure crisis is unlikely, since most people have significant equity in their homes. During the economic recession of 2007 and 2008, many people had put little to no down payment on their homes. In today’s climate, “people have a lot more equity in their home, so the chances of foreclosure are low,” Scott explained.