Real Estate Ventures
by Joe Wiessner
What’s Hot and What’s Not in Real Estate
HOT:
Supply of Short Sale Properties and Bank
Foreclosures. Even more distressed properties
coming to market this year. Excellent for
buyers, tough for sellers. These properties
continue to be a drag on the market. Prices will
not increase until this supply is absorbed.
Interest Rates. Rock bottom right now, averaging
around 4.5 percent with good credit scores. A
good time to refinance if you have lengthy years
remaining and your current rate exceeds 5.5
percent.
Investors. Investors are having a field day
feasting on the unlimited supply of bank-owned
properties. Many homes in this category are at
different degrees of distress. Locally,
depending on condition and location, there has
been a surge of below $100,000 sales. This was
unheard of a few short years ago.
New Jersey Exodus. More of my clients are saying
they just want out of New Jersey. The common
complaints are high taxes, extreme regulation,
and huge state deficits. Retirees are finding
states like Delaware, North Carolina, and
Florida popular due to less taxation and milder
climate.
Incoming Military Personnel. A trend has emerged
amongst the US Armed Forces moving into south
Jersey from distant states. Closure of major
bases across the country has caused the recent
emigration. The Air Force (Maguire Air Force
Base) and Coast Guard (Cape May) are the most
active.
Baby Boomers Downsizing. The kids have moved out
and the house is too big. When the boomers sell,
they usually have no mortgage and purchase cash
on their next smaller home at surprisingly lower
prices.
NOT:
Vacation Homes. High-end homes in general are
weak right now. Demand is tepid. Buyers are
waiting on the sidelines, fearful of the
uncertain economy and the possibility that
prices meander lower. Buyers are well aware of
the weak economy and are very deliberate in
their decision-making.
Condominiums. A glut of unsold condo inventory
in South Jersey is driving the local market
lower. Difficult times for Atlantic City Casinos
have caused layoffs of many casino personnel
which directly affects the huge condo markets of
Galloway Township and Mays Landing, which
ripples to the local market.
New Construction. Take a drive around; there’s
very little residential construction. Limited
building means moderate vacant land sales.
Buyers are waiting for lower prices. Many
Builders are into the land at boom prices and
are facing stiff competition from newer short
sale resales.
To contact Joe Wiessner call 561-1010 or stop by
his offices at Joe Wiessner Realty located at
527 12th Street.

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