Timing the Market in North Wildwood

Asked by Scot_lutte, Wildwood, NJ Mon Jan 4, 2010

I am seriously interested in purchasing in Norht Wildwood though I am concerned that home prices may continue to fall. Is there any real belief that home prices have stabilized and it is safe to jump in?

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9
Janet Larsen, Agent, Turnersville, NJ
Mon Jan 4, 2010
I think it is a great time to buy in the Wildwood areas. There are many homes available that builders completed but could not sell and went into foreclosure. As a buyer in the shore areas you have great opportunities to see and bid on many homes until you find the perfect home in which the seller is willing to negotiate or find a home priced below market values.

Janet Larsen, Broker/Associate
Remax Connection
Sewell, NJ 08080
856-261-6910
Search homes at http://www.njrealtorjan.com
Web Reference:  http://www.njrealtorjan.com
1 vote
Joanne Berna…, Agent, Northfield, NJ
Sat Jun 30, 2012
The real estate market in Cape May County is stabilizing. There may still be some downward movement but. If you find a home that suits your needs put in an offer that is in keeping with the most recent "just solids" or a little lower. With the mortgage rates at historic lows NOW is the time to buy!

Joanne Bernardini
Coldwell Banker- Casa Bella Realtors
601 New Rd.
Linwood, NJ 08221
609-947-2451
0 votes
Greg, Home Buyer, Lititz, PA
Sun Jan 31, 2010
Prices in North Wildwood will go back to their "historic levels", just like the rest of the country. There are still a ton of foreclosures to come, and add that to the job losses and it is certain prices continue drop to drop to 2000 levels.

North Wildwood has always been a Blue Collar area. People saved to buy a shore house there because it was always affordable. It isn't affordable now, so those people can't buy anymore. They did in 2003 - 2006 even though it wasn't affordable because they could get sub prime or Alta-a loans. Those loans are gone, so lending practices has gone almost back to normal (20% down). Look for prices to decline slowly for years.

All that being said; great place in the summer, just don't buy as an investment. Buy to enjoy it, because you will not see any appreciation for a long time.
0 votes
Larry Sarlo, Agent, North Wildwood, NJ
Mon Jan 4, 2010
I really do not think prices overall in the fair market will diminish. Look around where you live now. Listen to the market news. There is lots of evidence that the market has bottomed. However, stress on market areas are what has driven prices down to what they are now. North Wildwood and the shore area have seen dramatic decreases in fair market value.

Knowing the shore market, the 2nd home market, is particularly different than the the more standard markets of main stream residential home areas. If you are a person looking for a 2nd home for an investment, the prices are down to 2001-2002 prices right now. With inventory levels lower means higher prices are more prevalent than lower, but don not look for dramatic higher prices until 2012 and after. No one can predict the market. But now is the time to buy in the shore areas, People will be coming out to look starting Feb and march. The best deals will be sought out first. If it is a short sale you are interested in you'll want to be in before the summer not at the end. They take time figure 40-60 days. Rentals are still strong, everyone goes on vacation. Closer to the beach the higher the rents. Buying lower now will provide a better return on investment this year. Buying now will provide you with the sumertime events everyone is looking forward to. If you wait to buy at the end of the summer you will be waiting an entire year again to see any value of your investment paying mortgage over the next year also.

The 2nd home market is usually the first to turn around when the economy is leading off to better horizons. Lower inventory levels indicate a better turn around in the 2nd home market. It's not exact science. Anyone tooting horns shouting the end is near is not sane. But to say it's all better, no. I do not see the stress on the markets as we have seen. There is much better controls in place and it will only get better from now on with some camel hump fluctuations. Very minimal and short term.

However I went all in on the stock markets in March, stayed away from financials mostly, only taking on the big guys. All the tell tale signs are there for a stronger economy. Government has provided so many avenues to jump start it's just has to get better. Will there be camel humps, yes. If we see a sudden spike in price levels all at once, then it is uncontrolled growth, much of what we have seen in the past. But with strict lending guidelines. I want to say strict but actually, it's just back to the basics of lending now; Money down to buy. Interest rates are really low. I see a spike in rates coming soon also. The government has kept the dollar low to pay down debt. But it cannot hold at these levels and so interest rates will spike also. The stock market will also get hit again. Whenever a turn of events occur there is always seller, when there is sellers lower prices is the result. When there is no more to sell or little to sell then higher prices will ultimately be the result. Will that affect real estate markets, probably, but people will still buy. I really do not see the stress on the markets unless inventory levels are suddenly released and that is not going to happen. The government will not let it happen. Again it's not exact science, but just look around you, some people are out of work and others are making fortunes.

Understand this, pricing levels are low. The 2nd home market is strong. Inventories levels in these markets are lower, just as they are all over. I do not foresee any real spike in prices either. We are consolidating into a normal market. You will find some deals, but understand this everyone is looking for that one bargain. You must act on it or wait for the next and then how long can you wait? That is a question only you can answer!

Larry Sarlo
Weichert Realtors
609-868-1171 call / text / email 7days

lsarlo@comcast.net
0 votes
James Scott,…, Agent, Stone Harbor, NJ
Mon Jan 4, 2010
Scot,
My office is located at 1800 New Jersey Ave. Stop in, I would be glad to meet with you.
I watch the entire County market daily. I do see stabilization. Short sales have had a lot to do
with that trend in the Wildwoods.
Jim Scott,CRS*
Broker/Owner
ERA At the Shore Realty
609 425 7121 to 9 PM daily.

*There are over one million REALTORS® in business today.Only 37,000 hold the
Certified Residential Specialist Designation.CRS is the symbol of excellence in
residential real estate. Our members have proven they have the experience,
continuing training and commitment to be the best in their profession.
0 votes
Ryan Manney, , Stone Harbor, NJ
Mon Jan 4, 2010
Scot,

My advice as a buyer to you is to contact an agent and see what is on the market that meets your needs. I feel that there are good values in North Wildwood on the market but overall the market in that area (in all of the Wildwoods) is not as stable as I feel it should be to reccomend to a potential buyer.

I feel that the values may continue to drop further overall in North Wildwood but there is always the axceptional value that with low interest rates and a motivated seller is worth looking into.

If you have any further questions do not hesitate to contact me.
0 votes
David Read, Agent, Avalon, NJ
Mon Jan 4, 2010
While I agree with both answers, I would also like to point out one other thing. If you are looking for a longer term investment and financing, now would be a good time to buy because, if for no other reason, interest rates have started to increase slighly. If you would like, I would gladly assist you in your search or answer any questions you may have. You can reach me at 609-870-0066

Thanks,
Dave Read
Weichert, Realtors
0 votes
Marc Paolella, Agent, Succasunna, NJ
Mon Jan 4, 2010
Hi Scot,

I'm sure 20 realtors who want you as a customer will proclaim that "Now is the time to buy".

But......

It is impossible to forecast the market in a "stable" economy, much less the turbulent one we are now seeing. The resort and 2nd home market is especially unpredictable since it is so dependent on a strong economy.

If you need a house and are going to live there for 10 years and North Wildwood is where you want to live, by all means jump in and enjoy. But if you need appreciation to make the equation work or might have to relocate in 2 years, you are going to have to gamble.

I would advise you to do the research yourself using unbiased and independent sources. Stock brokers always seem to be bullish on stocks. Metals brokers always seem to be able to find a reason why "now is the perfect time to buy gold". And from them! Realtors on a public forum are the same animal. Most will find a reason why you should buy.

A buyer's agent has a responsibility to protect your interests to the greatest degree possible. Prediciting the market to entice you to buy would be antithetical to that duty.

Good luck!

-Marc

Marc Paolella
Relocation Director
Member: Worldwide ERC
Member: New Jersey MLS, Garden State MLS, Hudson County MLS
Licensed Realtor NJ
Licensed Appraiser NJ & NY
Century 21 Joe Tekula Realtors
Agent of the Year 2008
Agent of the Year 2009
Owner: Sands Appraisal Service, Inc.
Phone (direct): (973) 584-4235
Very cool new MLS map search: http://www.marcpaolella.com/SearchMLS
0 votes
Larry Sarlo, Agent, North Wildwood, NJ
Mon Jan 4, 2010
I will say inventories have depleted greatly in North Wildwood. There are certainly a few deals in short sales and REO's, they are being scooped up quickly. I think ultimately there is a stabilization in prices. I think to even think of timing a market is difficult. Waiting at this time may cost you in equity. Tis the season for buying in North Wildwood and all shore towns. In fact you may be a little early, but your timing is right as long as you find a property and take action. Prices are down, do I think they will go down further, no! There is always a property or 2 that can be made at a bargain. Being at the right place at the right time is mostly luck and you will get a good price no matter, if you like the property. If you are trying to flip, then that is a different story and probably the wrong market place to do so. Since most buyers today are 1st timers and the shore markets are really not 1st time buyer market areas. Careful of some of the condos in the shore markets. You may have some ideas what you are looking for beach or bay or a little further back from both puts you in between. Although other than a less expensive property further back off the beach, I do not understand why anyone would want to be back off the beach. The best rentals are close to the beach if you want some investment value, in fact if you want any investment value at all.

I know the market area well in North Wildwood, I have a home there as well. If I can be of help to you please contact me.

North Wildwood Zip code is 08260 and runs from 1st to 26th ave with JFK, Ocean Ave, Surf Ave, Atlantic, Central, New Jersey, New York, Delaware Maryland Ohio and some other streets near Anglesea and towards the bay further north.

Larry Sarlo
Weichert Realtors
609-868-1171
lsarlo@comcast.net

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