Halfway through 2021 and the Ocean County Housing Market Continues to Soar
Ocean County’s housing market has grown so overheated as demand outpaces supply that prices keep hitting unprecedented highs — and many houses are now selling above their list price.
Several factors are driving the seemingly relentless rise in home prices. The pandemic has encouraged more people to seek out the additional space provided by a single-family home. Yet at the same time, COVID-19 discouraged many homeowners from selling and opening up their homes to would-be buyers, thereby shrinking the number of homes for sale.
And mortgage rates remain at historically low levels, with the average rate on a 30-year fixed mortgage around 3%.
This is not a bubble like 2008; so, while housing prices could flatten in the next few years, the conditions for another crash are absent. Instead of easy credit, the main factors in the current price runup are tight supply and strong demand, both of which are likely to continue.
As you look at the statistics for your city or town below, you’ll notice a few things:
1. Sale’s Prices are UP – a lot for one year
2. Days on Market are DOWN – homes are selling much faster
3. Active and New Listings are DOWN (for the most part) – reflecting a lack of inventory
4. If you’re thinking about selling, NOW may be the time!
Ocean County Market Summary Report for Selected Townships – Year to Date
Stafford Twp. (Manahawkin)
· Median List Price: Up 11.19%
· Median Sale Price: Up 30.36%
· Median Days on Market: 13 (# of days on market before property sells)
· Sold Listings: Down 5.8% (due to lack of supply)
· Pending Sold Listings (sold but not closed): Down 14.1%
· Active Listings: Down 24.4%
· New Listings: Down 0.3%
· What’s Your Stafford Home Worth?
Barnegat Twp
· Median List Price: Up 11.11%
· Median Sale Price: Up 16.49%
· Median Days on Market: 14 (# of days on market before property sells)
· Sold Listings: Down 6.0% (due to lack of inventory)
· Pending Sold Listings (sold but not closed): Down 4.3%
· Active Listings: Down 9.7%
· New Listings: Down 10.9%
· What’s Your Barnegat/Waretown Home Worth?
Lacey Twp (Lanoka Harbor and Forked River)
· Median List Price: Up 20.09%
· Median Sale Price: Up 25.83%
· Median Days on Market: 15 (# of days on market before property sells)
· Sold Listings: Up 17.4%
· Pending Sold Listings (sold but not closed): Up 6.7%
· Active Listings: Down 9.7%
· New Listings: Up 5.4%
· What’s Your Lacey Twp Home Worth?
Berkeley Twp (Bayville)
· Median List Price: Up 22.23%
· Median Sale Price: Up 17.43%
· Median Days on Market: 13 (# of days on market before property sells)
· Sold Listings: Up 8.1%
· Pending Sold Listings (sold but not closed): Down 7.5%
· Active Listings: Down 19.4%
· New Listings: Down 7.8%
· What’s Your Bayville Home Worth?
Toms River Township
· Median List Price: Up 11.82%
· Median Sale Price: Up 24.58%
· Median Days on Market: 16 (# of days on market before property sells)
· Sold Listings: Up 15.7%
· Pending Sold Listings (sold but not closed): Down 1.3%
· Active Listings: Down 23.6%
· New Listings: Down 10.7%
· What’s Your Toms River Home Worth?
Brick Township
· Median List Price: Up 13.32%
· Median Sale Price: Up 20.25%
· Median Days on Market: 15 (# of days on market before property sells)
· Sold Listings: Up 14.9%
· Pending Sold Listings (sold but not closed): Up 5.2%
· Active Listings: Down 11.7%
· New Listings: Down 3.6%
· What’s Your Brick Twp Home Worth?
House prices have increased 36.3% in Ocean County in comparison to this time last year. Robust home price appreciation is partly due to the acute housing shortage that developed in the aftermath of the Great Recession when new home building slowed below the level necessary to provide for new household formation. This shortage has only worsened in the last year, as interest rates have dropped in response to the Covid-19 pandemic, resulting in increased demand from potential homebuyers who can suddenly afford to pay more for a house. This is a true seller’s market. A "seller's market" in real estate describes a shortage of properties in the face of healthy demand.
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:
1. https://www.bloomberg.com/businessweek
2. https://apnews.com/article/prices-home-prices-lifestyle-health-coronavirus-pandemic-f072fbf01de5af9e4c27792810c69e7b
3. https://www.monmouthoceanrealtors.com/monthly-statistics/
4. https://www.barrons.com/articles/housing-is-becoming-less-accessible-who-rising-prices-affect-most-and-why-51627508785