Doom & Gloom...REALLY???

HAVE YOU BEEN LISTENING TO THE NEWS?


The national unemployment rate is 9.6%!


OK, but what about YOU? Are you are among the 90.4% who are employed? Is your job secure and are you finances solvent? If so, you should be eagerly taking advantage of the amazing opportunities available to you! And guess what? By doing so, you stand to gain personally, while actually contributing to overall economic growth.


HAVE YOU BEEN LISTENING TO THE NEWS? The National Realtors Association reported that while the average price of homes increased slightly, sales of existing homes decreased by 27.2% from June to July, the lowest rate since 1999.


OK, but what about HERE? While such facts are relevant to the country, for the most part they are not applicable to you and your home purchase at the Shore. Such factors are NATIONAL facts and in most cases DO NOT affect our market or our Buyers. In Margate, Ventnor and Longport, sales of existing homes decreased by just 9% from June to July – so the national rate of sales decline is 3 times what we are experiencing locally!
Unfortunately, the media continues to bombard us on adaily basis, and it’s easy to forget that we are not all in Kansas.


Have you seen the mortgage rates? Did you know you can get a mortgage as low as 4.2% on a 30 year fix mortgage with 0 points? Mortgage rates have not been lower in over 35 years.


Have you seen the choices of homes? There is a greater selection of properties on the market in terms of price, condition and location then there has been for a long time. Multiple builders and renovators have numerous spec homes started all over the island at this time. In addition, prices have never been better than they are now.


In December 2009, Marc Roth wrote an article for Business Week, entitled, “If You Don't Buy a House Now, You’re Stupid or Broke”. While Mr. Roth was not talking about the Shore market specifically, the article truly pinpointed a Buyer’s need to not miss this opportunity. And keep in mind that once unemployment begins to drop, mortgage rates will climb and so will home prices, and your window of opportunity will close.


The most important thing to remember above all is:

ALL REAL ESTATE IS LOCAL!

It can’t be stressed enough. The media is reporting on the biggest trends across the country, but that does not necessarily apply on a local level. This is critical to keep in mind and understand as you watch the news and read the papers.


Negative reporting of a declining market on a national level may be valid information overall, but it’s not information valid to the Jersey Shore. Buyers are often surprised when they hear that our local market does not fit the national trend. What we tend to forget is that our community and the demand for homes in our area differ from California, Florida or even other parts of New Jersey. The Jersey Shore is a large growing resort community, and while our market has been affected, people still flock here every year seeking a second residence, a place to retire or just a great environment to live and raise families year round.

THERE IS ONLY SO MUCH BEACH!

(This column will appear in the upcoming issue of Homes and Land Magazine due out on September 10, 2010.)