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The Shore Report – Quarter 2

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The Shore Report CoverThe Shore Report is part of our ongoing effort to become essential to our clients by providing access to information on the local real estate market. This report details the market trends as compared by both years and quarters. It puts a spotlight on local shore towns such as Brigantine, Atlantic City, Ventnor, Margate, and Longport.

Highlighting new auctions from Sotheby’s Auction House, including Original Film Posters and Royal Jewels, as well as a feature about the Hard Rock and Ocean Resort Casinos, which opened in July.

At Soleil Sotheby’s International Realty, we believe that to make the right decision, clients need to have all the information. We believe you deserve more.

To read the full report, click here.

The Shore Report

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The Shore Report Cover

Each quarter, Soleil Sotheby’s International Realty creates a report showcasing the local market. It offers an overview and comparison of the housing trends in Brigantine, Atlantic City, Ventnor, Margate, and Longport for each quarter year over year.
In our ongoing effort to become an invaluable resource to our clients and neighbors, this quarter-by-quarter analysis of the local housing market helps us achieve that goal.

To view the report, click here

What to Expect from the New Jersey Real Estate Market in 2018

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Expect the unexpected. This old adage that you’ve heard time and time again is the single most important statement when it comes to assessing the climate of real estate in New Jersey. Previous real estate forecasts with respect to last year could have never predicted the unwavering amount of pressures that commercial and residential real estate markets experienced. In fact, previous forecasts expected new construction and development to hit a boom and interest rates to increase. What happened instead? Mortgage rates barely saw movement, house prices rose, and the development of new homes and construction didn’t see an increase until very close to the end of the year. It wasn’t the 2017 that many had expected, which left many wondering what to expect in 2018.

One expectation for New Jersey homeowners in 2018 was the gross impact that the tax reform would have on their pockets. The new $10,000 cap on state and local tax deductions is a considerable and unwelcomed change for residents who paid an average of $17,800 on their state and local taxes just 3 years prior. Additionally, the elimination of interest deduction on home equity mortgages and the cap on new home mortgages are expected to keep a slow-growing New Jersey real estate market at an almost stand still.

Home inventory in New Jersey is already tight enough as it is. Many homeowners have either found their perfect home and don’t want to move or simply can’t afford to move at this time. The amount of renters has increased as well, particularly in areas near major cities such as the suburbs of Philadelphia and New York. Under the new tax reform, the already limited home inventory is likely to become even smaller. Existing homeowners whose mortgage exceeds the $750,000 cap, but falls below $1,000,000 are less likely to move if they are required to take out a new, larger mortgage on the new home. An additional concern under this outlook is that those homeowners who were looking to upgrade their home or move from a starter home into a larger home may now no longer be able to afford as much house as they had initially planned. All in all, fewer home buyers pooled with the decreasing amount of homes entering the New Jersey real estate market decreases the number of home buying transactions that will occur this year.

All isn’t lost or bad in 2018 for the New Jersey real estate market. With New Jersey being primly located between Philadelphia, New York, and even DC, more millennials are flocking to the area to buy up homes. Despite previous reports, Forbes believes the millennial demand for housing will see a drastic increase as the population of people born after 1980 is fully in the workforce, married, and starting families. Even though millennial homeownership saw a slow start, New Jersey should begin to feel the impact of their homeownership soon.

In addition to millennials becoming homeowners, there are parts of the New Jersey that are in high demand.  Areas with access to mass transit, good schools, and single family homes are prime real estate. New Jersey Shore real estate falls greatly into this category. In fact, according to Neighborhood Scout, 5 of the top 10 highest appreciating New Jersey cities since 2000 are located along the New Jersey shoreline. Their growth is only expected to continue.

It’s fair to say that the New Jersey real estate market can be summarized with one word: uncertain. However, home prices are steadily rebounding. The median home value in New Jersey is $313,560, a 10.6% increase over the past year. The median home listing is $285,000 where the median home closing price is $253,700. It seems that those who are purchasing homes are getting more bang for their buck, making the outlook on 2018 promising.

Protecting Your New Jersey Shore Home Investment

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new jersey shore homeJune 1, 2018, a day that shore homeowners across New Jersey and the rest of the Atlantic should have circled on their calendars. The first day of June is not the beginning of summer, as much as we like to believe it is. This day actually marks the beginning of the hurricane season across the Atlantic Ocean. The Atlantic coastline, especially New Jersey, is no stranger to hurricane season. From minor beach erosion to full on flooding that has resulted in the loss of homes, New Jersey shore homes have taken their fair share of beatings from Mother Nature over the years. As weather patterns become more unpredictable and constantly changing, it’s important that as shore homeowners, you do what is necessary to protect your investment. Whether you’re living in a luxury condo in Atlantic City all year long or own a rental beachfront bungalow in Cape May, you should take a few precautions to keep your home safe this upcoming hurricane season.

 

When assessing the best way to protect and manage your shore home property, one factor that you need to keep in mind is the various types of risks that can present themselves. Certain risks require certain coverage. This is especially true if you rent your New Jersey shore home to family, friends, and strangers. Some of the risks that you need to have covered are dwelling, personal property, and personal liability coverage. A sure way to protect your investment is to find a comprehensive homeowner’s insurance policy. This policy will typically cover medical care for people injured on your property, damage from natural disasters, and personal property replacement.

 

However, it’s necessary to point out that many New Jersey shore homes need to have a separate policy for flood insurance. Many residents found out during Hurricane Sandy that not all homeowners’ insurance policies automatically covered flood damage. Flood damage is usually the major cause of damage to shore homes during a natural disaster. If your home lies within the designated flood zone, it’s recommended that you check your policy and get the necessary insurance to protect your home.

 

Unless your shore home is your main residence, the likelihood that you spend a considerable amount of time there in the offseason is slim. If you don’t live locally where you can check on it every week, chances are your property will be left empty for weeks until you visit or a renter stays. It’s a good idea to make friends with the local neighbors and year ‘round residents. There are some residents who live at the shore all year long and are willing to check on properties for people who cannot make. You should give this responsibility to someone you truly trust and will keep you informed on the status and condition of your home and neighborhood.

 

Periodically checking on the state of your house will help you to detect any problems as they arise or before they become greater. On every visit, check the plumbing, HVAC system, fire detectors, security alarms, and inspect for water damage. This will also give you a chance to make continued updates to your home throughout the year. Making periodic updates to your shore home or property can help to keep the cost of your insurance down as well.

 

Even though it may seem as if summer and hurricane season are a little bit away, it’s never too early to start preparing. The sooner you take steps to prepare your home; the better you’ll be able to protect your shore home investment in the event of a natural disaster.

 

The Shore Report

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This quarterly report focuses on the housing market of Brigantine, Atlantic City, Ventnor, Margate, and Longport, New Jersey, and compares data from 2016 and 2017. If you have any questions, please feel free to contact us – we’d love to discuss!

To view the full report, click here.

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Yes, You Should Be Looking at Jersey Shore Homes in Winter

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Wintry home at sunset - patio and garden blanketed in snow as sun goes down on a winter evening

 

If you’re thinking about waiting until the weather warms up to start looking at homes, we would highly encourage you to reconsider. Although some realtors may tell you to wait until spring as more homes will be on the market, the truth is you can find some amazing homes in winter as well.

 

Winter is a great time to look at homes because there is generally less competition than other times of year. This means you’re less likely to run into multi-bid scenarios, and you might even be able to underbid and get the home at a lower price than you would in the spring or summer. Many times, sellers who put their home on the market in winter are more motivated to sell.

 

In addition to that, you will be able to see how the home does during the colder months. Although the Jersey Shore is a vacation hotspot, it is still in the Northeast. It can get quite cold this time of year, and snow and sleet are always an issue residents will need to keep in mind. Prospective homeowners can see how well the heating system works and how well insulated the home is.

 

Tips to Keep in Mind if You Plan on Looking at Homes in Winter

 

Hire a Real Estate Agent Who Is Familiar with the Area: He or she will be able to point you in the direction of quality homes and identify which homes will best meet your needs. At Soleil Sotheby’s International Realty, we have talented agents with a keen knowledge of the Jersey Shore real estate market.

 

Ask to Look at Photos of the Home during Other Seasons: If there is snow on the ground, you might not be able to get a good look at the deck, lawn, etc. Pictures can help you get the full picture.

 

Inquire about the Roof, HVAC System, and Other Parts of the Home You Can’t See: Get an idea of when improvements were made, and, obviously, don’t buy a home until you have had it thoroughly inspected by a licensed home inspector.

 

Don’t Feel Rushed: Just because you are looking at homes in the winter, it doesn’t mean you have to buy one right away. Keep an open eye and ear for homes, and trust in your realtor to help you find a home that’s best for you. If you don’t find one in winter, there’s always spring.

5 Real Estate Tax Secrets for Investment Properties

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Most people have never heard of these tax strategies that involve an investment home. These tips will help you maximize your tax savings, and will give insight as to how to manage having a second home.

Tip #1: Take advantage of ‘safe harbors’

Don’t let your second home sit vacantly while you’re not there, rent it out! This will provide an extra income, and you can deduct related expenses such as repairs, insurance, real estate taxes, and a mortgage interest. The IRS also has a “safe harbor” policy for rental property expenses for $2,500.

However, if you are personally using the property for more than 14 days per year, there will be different tax implications, so consult with an accountant to determine what the specifics would be.

Tip #2: Depreciate your rental property

The IRS views a rental property as a business expense, which means they expect it to depreciate over time. The benefit of this is that you can deduct some of the cost of the home for upward of 27.5 years.

Tip #3: Depreciate is actually a ‘phantom deduction’

The IRS defines depreciation losses for rental properties as an allowance given to owners for the wear and tear and normal use of the property. While the IRS compensates landlords and owners for the depreciation of their assets, homes actually appreciate in value, so the loss the IRS allows doesn’t happen. This saves money on taxes, while still making a profit.

Tip #4: The 1031 exchange

This tax rule lets people sell an investment property for a profit, while moving the proceeds directly to another investment property, while deferring the tax liability. By paying capital gains tax, this can increase the value of your holdings without affecting your capital. Also, if the money in holding remains untouched before closing, the original sale will have no tax due.

Tip #5: Leave more money to your heirs

If using the 1031, heirs are left with real estate that has a lower tax basis than its actual value, because the tax law states that when someone passes away, the gain inherent in their investment is gone. If you’re looking to get cash out of the property, just refinance it and take out a home equity line of credit. Also, there is no tax on debt so having a home equity line of credit is simple for getting cash flowing without having an extra tax expense.

 

 

 

 

Heidenry, Margaret. “Shh! 5 Real Estate Tax Secrets the Rich Don’t Want You to Know.” Realtor.com, 14 Mar. 2017. Web. 30 Mar. 2017.

The Atlantic City and County Board of Realtors American Red Cross Blood Drive

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give bloodSoleil Sotheby’s International Realty encourages those who are willing and able to please consider donating blood.

“As you may be aware, the Northeast has gotten hammered by the winter storm and this is causing such as huge impact to our collections for our hospitals and more importantly; our patients!  As of this morning, the East Division of the American Red Cross has lost roughly 3900 units due to this storm and we will feel like that number will climb as the week goes on. The need is constant and critical right now! We are having an extremely hard time keeping up with the demand of our hospitals.”

Every two seconds someone in America gets a blood transfusion. Five million patients will need blood this year.

Thursday, March 23, 2017

10:00 am – 3:00 pm

Main Room

6429 Black Horse Pike

Egg Harbor Township, NJ 08234

Make your appointment today by clicking here, or go visit redcrossblood.com and enter the sponsor code ACCBOR 

2016 Year-End Market Report

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CaptureSoleil Sotheby’s International Realty has published our 2016 Year-End Market Report. This report is a comprehensive look at the single-family home and condominium sales in the area, as well as an overview and comparison of local housing trends, a list of our significant sales, and showcases some of our finest properties for sale.

Read the full report here

NJ REALTORS® Circle of Excellence Sales Award Recipients

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Soleil Sotheby’s International Realty is proud to announce our agents who have received this distinguished sales award!

The 2016 award levels are:

  • Platinum: $20 million and 30 units minimum, or 125 units
  • Gold: $12 million and 25 units minimum, or 90 units
  • Silver: $6.5 million and 20 units minimum, or 70 units
  • Bronze: $2.5 million and 15 units minimum, or 30 units

NJ-REALTORS-2016-Award