3 Advantages Right Now for Shore Buyers

With home prices making a nearly unprecedented rise over the last 10 years, it’s been a tougher time for buyers than sellers as a general rule. Especially during the frenzied home shopping of the pandemic period. When the masks came off and the dust settled, many buyers who had not found their next real estate dream property during this stretch hoped that prices might fall or even collapse as they have after some historic booms. And there is no crystal ball and nobody can say with certainty they might not soon or in the future. However, we are a full three years into higher interest rates now and the fall has not come. Inventory remains extremely low by any historic measure. The dreams of a real “buyers’ market” appear to be just dreamy thinking.

However, even with inventory this low, it would be tough to describe the shore real estate market in southern NJ as still a seller’s market. More accurately, it could be described now as very balanced. There are some good things about being a buyer now in this market and this week we highlight three of them:

Negotiation is back. The wild era of near constant multiple offers left some with the mistaken idea that only full-price or over-full offers are acceptable. Yes, we still have the occasional multiple offer situation, but more often homes are negotiating and selling for less than asking now. Sometimes for a lot less.
Qualifying for loans might be easier. Interest rates might be higher than the 2.75% we saw in 2021 and early 2022, but lenders are competing harder than they have in a long time. This has created a variety of new products and new options that make qualifying in less traditional ways possible. Asset based loans might be great for recent retirees with wealth but less income than before. If you plan to purchase your shore property as a rental investment, DSRC (debt service cover ratio) options make qualifying using rental income alone a possibility for many.
Buyers are getting more respect. By this, we mean that the take-it-or-leave it attitude sellers assumed with buyers a few years ago are not nearly as prevalent now. This means that sellers are more willing to accept contingencies like home sales or work to resolve concerns that arise in home inspections. Even if prices have not improved for buyers, the details behind the public records of a sale are much more favorable for purchasers now than before.

If you are considering buying, we’d love to discuss this and more with you. Reach out.

But as always, find links below for everything listed, put under contract, or sold in Sea Isle, Avalon & Stone Harbor, The Wildwoods, Ocean City, and Upper Township (includes Strathmere) below. To discuss anything real estate related or your plans to buy, sell, or rent, call us at 609-478-0333 or email [email protected].