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.