Is "it" over?

I am asked aboutthe real estate market every day. How's it going? Are prices dropping? "There must be some great steal sin the market", one person said to me the other day. Well, if I have disucssed this issue with you recently, you will know my answer has been consistent (and honest!). Prices are flat, number of sales are down (in general terms).

This an article from today's Atlantic City Press:

December home sales down 26% in county
Realtors say the worst of housing downturn appears to be over
By KEVIN POST Business Editor, 609-272-7250
(Published: January 26, 2008)
Just 134 homes were sold in Atlantic County in December, a drop of 26 percent from the year before and a level not seen since the last time the real estate market hit bottom in 1993.

According to figures from the South Jersey Shore Regional Multiple Listing Service, December's sales are down 54 percent from the 289 houses sold in the same month in 2004, when the real estate boom was near its peak.

The median sale price for Atlantic County houses in December was $250,000, essentially unchanged from the price the year prior of $250,050. In December 2005 it was $260,000.

The number of homes for sale in the county - another key housing market indicator - fell 7 percent in December from the year-ago period, according to the MLS data supplied by the Atlantic City & County Board of Realtors.

The reduction in inventory - to 2,600 houses for sale in December from 2,820 the year prior - supports the view of many in the industry that the market has leveled out. Five years ago, 1,357 houses were on the market.

The average length of time it took an Atlantic County house to sell lengthened from 85 days in 2006 to 102 days last year, according to a market report from Prudential Fox & Roach, Realtors.

For the year, there were 14.6 percent fewer homes sold in the county, the report said, dropping to 3,509 from 4,110 the year before.

Despite the downturn in many market indicators, prices continued to increase. Countywide, the average home price was 7.5 percent higher in 2007 than the year before.

The largest median price increase, 11.1 percent to $300,835, was seen in Atlantic City, according to the Prudential Fox report. Price increases elsewhere included: Mullica Township, 7.7 percent to $262,743; Ventnor, 6.9 percent to $524,109; Buena, 5.1 percent to $198,099; and Buena Vista Township, 3.3 percent to $215,177.

Ocean City actually saw an increase in the number of houses sold last year, from 633 in 2006 to 725 in 2007, a gain of 14.5 percent. Average sale price there decreased 1.7 percent to $637,159.

Realtors in the region suggested the worst of the housing downturn is over in their assessments of market conditions posted on the National Association of Realtors online site.

Gary Simmens, a broker at Northfield-based Balsley Losco with more than 30 years experience, reported that as of the the start of the year, "market activity is picking up a lot."

Simmens credited casino-driven growth in Atlantic City that looks to be strong for years to come. He also noted that the city metropolitan area rated highly for the past year in property price appreciation.

Maureen Harris, an agent with Century 21 Gilmartin & Co. in Cape May, said that area's "shore resorts have maintained their moderate market prices with only longer days on the market."

Harris said the boom and bust of the real estate market the past five years is over, and now market conditions are relatively normal. [END OF STORY]
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With mortgage rates falling well below 6% and house prices flat, this may be the best time to pick a well valued home in our market. The upcoming casino development projects may have some demand impacts but I'll save my commentary on this for another day.

Until demand picks up, your listing prices need to be reasonable if you really want to sell your home. When demand increases and inventory drops a bit, your realtor should be able to respond quickly with recommended pricing changes (not always reductions!) to the market conditions.

I know where the values are in the Atlantic County region...how? I study the market for my clients, I keep in contact with other realtors and mortgage folks (sometimes the mortgage folks know more than the other realtors!), and I am active in the market.

I would like to help you buy or sell your property...just give me a call at 609-335-3222 and we'll get the process started.

TW