Jim Flanagan

Ocean County’s Adult Community Real Estate Market Report for the First Quarter of 2011:

Adult Communities in Ocean County-1st Quarter

This chart displays the sales and inventory of Homes in all of the Adult Communities in Ocean County, NJ. The high-lighted area focuses on the first quarter of 2011. As we can see, sales dipped in February but rebounded strongly in March. Both of these factors could be attributed to a “snowier” than usual January in 2011. The most significant factor to observe is the “Months Inventory”, which SOLD OFF 3 months worth of supply of homes in one single month (March)!

Year-Over-Year Comparison with the First Quarter of 2010:

Notice the major differences, between this year and last, are the number of sales in January of this year (137 over 115) and the HUGE DIP in the “Months Inventory” in March of last year. The latter is because we were entering the last 2 months of the “Extended Home-Buyer Tax Credit” here in Ocean County. So, even with the Federal Government offering between $6,500 and $8,000 to home-buyers of Adult Communities at this time last year, Ocean County is 29 sales ahead of last year! Why?

Sold/Closed Profile of Adult Communities in Ocean County (Y-O-Y):

Profile of Sold/Closed Homes in Adult Communities

As we can easily see, there was a SURGE in sales UNDER $100,000 in the Adult Communities of Ocean County in the first quarter of 2011! There were also significant increases in sales between $350,000 and $450,000.

In a nutshell; without the artificial demand created by the “Extended Home-Buyer Tax Credit”, home prices in the Adult Communities have depreciated to levels that have made them attractive to two “distinct” classes of retirees. Remember, beginning January 1, 2011; 10,000 “Baby Boomers” turn 65 each and every day, and will do so for the next 19 years! Obviously, they are finding what they want, need and can AFFORD in the Adult Communities of Ocean County, NJ.

I just finished reading this post from Trulia, Surprising Insider Secrets for the 5 Stages of Buying Your First Home. The author, Tara-Nicholle Nelson, is a real estate broker in San Francisco, CA. She makes some excellent points, but ONE jumped out at me more than the others; your family and your friends can cause you to lose your dream home! This is NO secret to real estate professionals here in Ocean County, NJ, but to our potential first time home-buyers; you may need to get your “believers” fixed.

Stage Four: Negotiations
Insider Secret: Your family and friends can cause you to lose your dream home.
Why: With so much information on the web and the news every day about the recession and the buyer’s market, everyone seems to be an armchair economist/real estate savant. But much of that news is national and based on medians, averages and trends. That is, it might not necessarily apply to every home on the market in every city, and more importantly, it might have nothing to do with “your” particular home.

I remember, way back in 1999, when I was sophomore sales associate, helping a young lady find her first home. We found it; a cute 2 bedroom home in the Money Island section of Toms River, NJ, listed at $99,000. This home needed absolutely no work and was perfect for my young, first time home-buyer. We wrote up the offer and agreed on a “negotiation strategy”; we offered $90,000 and agreed on eventually meeting the Seller in the middle at $95,000. I presented the contract, in person, and obtained the “expected” counter-offer of $97,500. Long story short; my buyer decided to “dig in” at $92,500, after discussing it with her mother’s boyfriend…we lost the house over $2,500. Today, even after the “housing market collapse”, that home is worth over $150,000!

So, here we are again in Ocean County, 12 years later. The local housing market is poised for a recovery; home prices and mortgage interest rates are at historic lows and their is an abundance of homes to choose from (limited by price range of course). Let’s learn from history and not repeat it; your friends and family may mean well but they just may cost you the home of your dreams. Trust and listen to your real estate professional. Unless, you want to live with mom and dad for the next 12 years!

Photo purchased from istockphoto.com

As the population of Ocean County, NJ, observes Valentine’s Day, in their own personal way today, we thought we would take the time to recognize the “Love Affair” our nation still has with the Dream of Home-Ownership!

The basis of our post today is a recent survey conducted by Trulia, which shows that 70 PERCENT OF AMERICANS VIEW HOMEOWNERSHIP AS PART OF PERSONAL AMERICAN DREAM!

This report was brought to our attention by our friends at Keeping Current Matters, in their wonderful post, “Own Thy Own Home”! Basically, the survey revealed the following:

• 70% of Americans still view home-ownership as being part of their American Dream.
• 78% say their homes are the best investment they ever made.
• 88% of 18-34 year old renters aspire to be homeowners.

Trulia’s Survey revealed much more interesting data and we hope you take the time to read it in it’s entirety but perhaps the most revealing statement was the sub-title of the survey itself; Despite Nightmarish Housing Market, 78 Percent of Homeowners Describe Home as the Best Investment They Ever Made!

What does this mean for Ocean County, NJ?

We are a “snap-shot” of Americana. Coldwell Banker Flanagan Realty believes the dream of home-ownership is alive and well and beating in the hearts of the next generation of Home-Owners! All the factors that make NOW quite possibly the “best time to buy a home in the history of real estate”, are in place. Will you make your dream a reality?

Happy Valentine’s Day, Ocean County!