Real estate prices in Ocean County are continuing to climb to new highs as demand for properties outpaces supply, driving up prices across the county. But have we reached the peak?
As the Federal Reserve begins to hike interest rates; sellers, investors and prospective homebuyers are wondering if the housing market is due for a downturn.
Concerns regarding the market's future are especially valid given the persistent increase in housing values since the pandemic began. According to data from the Monmouth/Ocean MLS, median property prices have grown by as much as 53% in some areas since spring 2020.
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Before we get to what the experts are predicting, let’s look at the trends for the 1st Quarter of 2022:
- Sale’s Prices are UP significantly in the last 2 years
- Days on Market are DOWN significantly; homes are selling much faster
- Home Sales are DOWN, reflecting a lack of housing inventory
- If you’re thinking about selling, NOW may be the time!
1st Quarter 2022 Ocean County Market Statistics for Selected Townships in Comparison to 2021
Stafford Twp. (Manahawkin)
- Median List Price: Up 16.67% and up over 27% compared to 1st Qtr of 2020
- Median Sale Price: Up 25.00% and up over 53% compared to 1st Qtr of 2020
- Median Days on Market: 14 (# of days on market before property sells)
- Sold Listings: Down 22.1% (due to lack of inventory)
- What’s Your Stafford Home Worth? Get a FREE, Instant Valuation
Barnegat Twp
- Median List Price: Up 20.64% and up over 23% compared to 1st Qtr of 2020
- Median Sale Price: Up 22.85% and up over 48% compared to 1st Qtr of 2020
- Median Days on Market: 14 (# of days on market before property sells)
- Sold Listings: Down 19.7% (due to lack of inventory)
- What’s Your Barnegat Home Worth? Get a FREE, Instant Valuation
Waretown
- Median List Price: Up 0.29% and up over 5% compared to 1st Qtr of 2020
- Median Sale Price: Up 15.18% and up over 35% compared to 1st Qtr of 2020
- Median Days on Market: 14 (# of days on market before property sells)
- Sold Listings: Down 44.7% (due to lack of inventory)
- What’s Your Waretown Home Worth? Get a FREE, Instant Valuation
Lacey Twp (Lanoka Harbor and Forked River)
- Median List Price: Up 12.67% and up over 40% compared to 1st Qtr of 2020
- Median Sale Price: Up 31.62% and up over 47% compared to 1st Qtr of 2020
- Median Days on Market: 10 (# of days on market before property sells)
- Sold Listings: Down 21.0% (due to lack of inventory)
- What’s Your Lacey Twp Home Worth? Get a FREE, Instant Valuation
Berkeley Twp (Bayville)
- Median List Price: Up 6.34% and up over 36% compared to 1st Qtr of 2020
- Median Sale Price: Up 16.15% and up over 36% compared to 1st Qtr of 2020
- Median Days on Market: 14 (# of days on market before property sells)
- Sold Listings: Down 21.6% (due to lack of inventory)
- What’s Your Bayville Home Worth? Get a FREE, Instant Valuation
Toms River Township
- Median List Price: Up 15.16% and up over 26% compared to 1st Qtr of 2020
- Median Sale Price: Up 17.40% and up over 40% compared to 1st Qtr of 2020
- Median Days on Market: 15 (# of days on market before property sells)
- Sold Listings: Down 9.1% (due to lack of inventory)
- What’s Your Toms River Home Worth? Get a FREE, Instant Valuation
Brick Township
- Median List Price: Up 10.34% and up over 23% compared to 1st Qtr of 2020
- Median Sale Price: Up 15.17% and up over 35% compared to 1st Qtr of 2020
- Median Days on Market: 23 (# of days on market before property sells)
- Sold Listings: Down 3.1% (due to lack of inventory)
- What’s Your Brick Twp Home Worth? Get a FREE, Instant Valuation
So, are prices going to start dropping?
Desmond Lachman, a senior fellow at AEI. former deputy director for the International Monetary Fund, and former strategist at Salomon Smith Barney, said in an interview that rising mortgage rates would be driving factor behind why home prices could fall.
Ivy Zelman, a former Credit Suisse analyst and the founder of the research firm Zelman & Associates, thinks the housing market is due for a downturn because of issues stemming from potential supply increases.
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While most real estate analysts don’t believe we’ll see anything like the crash of 2008, they do think that prices will not be increasing at the rate of the last 2 years.
Bottom Line: If you’re thinking about selling, NOW may be the time!
Karl Hess provides expert real estate services to residential buyers and sellers in Ocean County. Contact us today for more information on Ocean County Real Estate and for professional assistance navigating this complex home market.
Sources:
Business Insider - What's next for the US housing bubble? Industry experts break down the bull and bear cases for home prices in the months ahead -
https://www.businessinsider.com/housing-market-crash-home-prices-mortgage-rates-bubble
Monmouth/Ocean MLS - https://www.monmouthoceanrealtors.com/
Associated Press - https://apnews.com/
Quartz — Global business news and insights https://www.qz.com