In South Jersey, the spring market has arrived, and in what appears to be one of the largest growth segments in South Jersey real estate is investors! One of the first signs that we are moving from a buyers market to a stable market is when we see investor activity like this. For the past few years, there have been a ton of homes sitting on the market for over six months adding to the inventory. With investors starting to purchase these properties, we will see a smaller inventory in the future.
Why are investors so important to real estate?
According to Alex Charfen of the Charfen Institute, "Investor activity increases from 17% of the market in 2010 to 27% of the market in 2011. I am on record as saying there will be (may already be) a housing shortage in key markets in the US beginning now" Alex Charfen is the man behind the CDPE designation, a designation many realtors are looking to earn in order to help struggling home owners who may be facing foreclosure.
South Jersey investors play such a huge role in the market for towns like Mount Laurel, Medford, Cherry Hill and Marlton. When investor activity is up, then buyers in general gain market confidence back. This of course propels the increase in first time home buyers and finally more sellers ready to sell. It is a whole domino effect.
Over the years, we have seen the South Jersey real estate market go from such a hot market where homes were sold before they were listed, to a slower market where homes sat for months with no offers. Investors become an integral part of the stabilization of the market because it drives so many things.
Real Estate market Trends
This statistic should really give sellers a strong hope for the future. I think what is demonstrates to homeowners who were waiting for the market to "turn around" is that we do have the ability to move back to a stable market. Sellers who have been on the market for a little bit, may start to see more activity, multiple offers and look forward to signing contracts with potential buyers.
This is a great direction for us to be heading in for South Jersey real estate!