View all Articles
Poised to pop?
Saturday, January 20, 2007
I am calling for a nice jump in activity at the Shore this spring.
"After the superbowl" is when we start to see people looking towards summer. The holiday decorations are only just settling in storage, and yes, summer is not that far!
My grandmother always said at Christmas : "Next thing you know , it will be the 4th of July"
On the 4th of July, she would say ; " Next thing you know, it will be Christmas"
She was right both times.
The months fly quickly, and the astue buyer should understand the simple principle of supply and demand.
Interest rates are still AWESOME, the stock market is doing well. Gas prices are down, and inventory of available homes is HIGH.
Those who buy first will simply get the best values. It is not much more complex than that.
Inevitably, as supply decreases, we are poised for another run in real estate.
When the number of available homes does in fact dwindle, it boosts Sellers' confidence - and it effects pricing.
In my opinion, the alleged "bubble" is WAY over. It is apparent that the most negative predictions turned out to be not exactly accurate. Sure, we have had a correction, but this a healthy part of the real estate cycle. There was no "fallout" or panic in Avalon. What there has been is a healthy "reality check". No market could sustain the level of the USA in 2003,4,5, but Avalon, remains strong, and in my opinion, forever will. THere were even people starting to ask me if there were going to be many foreclosures in Avalon. Of course, the media hyped up a minor increase in interest rates. I don't know too many property owners in Avalon , NJ who have been unable to handle the payment on their adjustable rate mortgage, as the media said we would see. It is another lesson of "do not believe everything thing you read"
I'll go further; I believe NONE of what I hear, and only half of what I see.
This is a very special place. We have a base of buyers from all over the USA: Pennsylvania, New Jersey, New York, Delaware, Maryland, Massachussets, Conneticut, Maine, Maryland, FLorida, Virginia, North Carolina, Georgia, California,etc, etc ALL WANTING TO SUMMER HERE! Think about it. I think Avalon, Stone Harbor, and Sea Isle city are 3 of the nicest resorts down here, and I am not alone in that thinking.
We are back to a time when buying makes sense. For the original reason; cause the beach is GREAT, and the place to be in the summer!
See what JP Morgan Chase has to say.
MM
* all opinions espoused in THIS article are purely the personal opinion of the author
