Sinking Fast or Still Afloat?
How is Ocean County’s Waterfront Home Market Performing; 1st Quarter 2011 vs. 1st Quarter 2010?
Would it surprise you if we told you that Ocean County’s Waterfront Home Market is 39 sales ahead of the same time last year (Jan. 1st through March 31st)? What if we told you that even as sales of Waterfront Homes increased this year, the Months Supply of Waterfront Homes has remained steady at just over 21 months? Now, what if we SHOWED you that the Average Sales Price of Waterfront Homes in Ocean County fell from $659,495 in March of last year to $422,419 in March of 2011?
Why did prices of Waterfront Homes in Ocean County fall 35% year-over-year?
In the First Quarter of 2010, 12 out of the 75 sales, or 16%, were “Distressed” (Short Sales & REOs). In the First Quarter of 2011, 19 out of the 114 sales, or 17%, were “Distressed”. Obviously, the percentage of “Distressed Waterfront Homes” in Ocean County did not change significantly year-over-year, so what drove prices down over the last year?
Average Sales Price as March 2010= $659,495
Average Sales Price as of March 2011= $422,419
Supply & Demand is the simple answer.
The Waterfront Market did not benefit from the “Home-Buyer Tax Credit” last year, unlike other home markets in Ocean County. Waterfront Homes were/are considered “Luxuries” or “Second/Vacation” homes and there-fore are not subject to the same “Demand” as primary homes. So, with an average of almost 3 years worth of “Supply” of Waterfront Homes during the First Quarter of 2010, it is no SURPRISE that prices fell significantly! At the end of the First Quarter of 2011, “Supply” had subsided to just under 2 years as savvy home-buyers were finding “values” once again in the Ocean County Waterfront Market.
