The South Jersey Shore real estate market saw inventory decline in October, just like much of the region’s housing market, according to the Long & Foster Market Minute reports. The South Jersey Shore region includes Atlantic and Cape May counties.
In Atlantic County, the number of homes sold decreased by 3 percent in October, while the median sale price rose 5 percent, compared to a year earlier. Cape May County experienced decreases in both areas, with the number of homes sold falling by 9 percent and median sale price declining by 7 percent. Active inventory declined by 16 percent in Cape May County and by 14 percent in Atlantic County.
“October was a good month – even better than we expected,” said Gary Scott, president of Long & Foster Real Estate. “It was a solid month for sales, listings and closings.”
The next year is expected to bring more of the same conditions that currently characterize the residential market: low inventory, low-but-increasing interest rates and strong demand.
Many homeowners bought or refinanced at historically low interest rates in recent years, and they won’t be eager to sell if the costs of borrowing go up, even as those entering the market hope to take advantage of still-low rates. Rising residential real estate values might raise concerns about affordability, but they could also play a role in alleviating inventory challenges, as more homeowners who bought before the downturn gain equity and decide to sell.
“We believe the economic indicators will be very similar to what they have been,” Scott said. “Every month, more people in our regions are gaining equity because of increasing property values. So price appreciation is a positive, but it also has an adverse impact on affordability.”
The Long & Foster Market Minute is an overview of market statistics based on residential real estate transactions for more than 500 local areas and neighborhoods and over 100 counties in eight states. The easy-to-read, easy-to-share reports include information about each area’s units sold, active inventory, median sale prices, list to sold price ratio, days on market and more.
Information included in this report is based on data supplied by South Jersey Shore and Cape May County multiple listing services and their member associations of Realtors, which are not responsible for its accuracy. The reports include residential real estate transactions within specific geographic regions, not just Long & Foster sales, and they do not reflect all activity in the marketplace. Information contained in this report is deemed reliable but not guaranteed, should be independently verified, and does not constitute an opinion of SJS, CMC or Long & Foster Real Estate.