The Burke & Co. Weekly Market Report for Avalon, Sea Isle, and Stone Harbor– Week Ending April 24, 2021
Who turned off the housing market? Ok, that might be a slight exaggeration, but it’s undeniable that things are significantly slower now than they have been for months. For the first time in a long time, we see new listings (15 total across our three towns) exceeding homes going under contract (5 total). That’s a 3:1 margin. Locally, the market is definitely cooler than the red hot scenario we had from mid-summer 2020 through the earliest parts of this spring. And that seems to be the story nationally now as well. Take this article from Business Insider: Existing home sales slow further as weak supply chokes off the US housing boom
So maybe the incredible COVID housing rush of 2020-2021 ends not with a crash and bang but instead with a wheezing fizzle. There’s a sense that the air is being let out slowly now. Maybe this is a good thing for everybody. It might be the case that homeowners willing to give up their summer homes and sell now for 2021 might do better than those who wait until the fall, but we might not see the type of dramatic swing that have characterized the great real estate crashes.
After all, the fundamentals of the economy are strengthening. Interest rates support home buying. Government stimulus and infrastructure should keep the county strong. And in inflationary markets, assets with fixed carrying costs and appreciating income return (like rental properties) tend to fare very, very well.
The American consumer will probably remain strong, but there is a distinct possibility that the luxury buyer might focus on some other options, like far-flung vacations or other experience spending. It’s also likely that more second homeowners will be willing to give up second homes now that there’s other things to do in the world again. Real estate might not see the big crash some anticipate, because instead, there will be just the slightest deflation. A bubble doesn’t need to pop if you just let a little air out slowly.
Or maybe it’s just an off week. We’ll see.
If you are ready to start your plans to buy or sell, call us at our team line at 609-478-0333 or email [email protected]
And of course, take a look at all of this weeks new listings, under contract, and sold homes with these links.
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