The Gluck Report 11/18/15
Ocean Front Condos
This is an outlook specifically on condos in the down beach area of Atlantic City, Ventnor, Margate, and Longport. The condo market across the island has been very fickle over the past years. Overall, it’s been a Buyer’s market where Buyers have extra inventory to choose from and the ability to make shrewd purchases. As the Atlantic City and Ventnor markets, taxes, condo fees, and special assessments continue to stabilize, we are forecasting an increase in purchases for 2016, which should extrapolate to slightly higher average sold prices and minor appreciation over the next few years.
Obviously, different buildings in different cities have varying levels of inventory, average selling price, and absorption rate. The rule of thumb in our area is that if any market segment has less than a years’ worth of inventory, we would consider that trending towards a sellers’ market. Any market segment with roughly 18 months’ worth of inventory would be considered a flat market, and anything with more than that would be trending towards a buyers’ market.
Some of the condo segments that are selling at a brisker rate are 2 bedroom units, units with open views, units that are directly ocean front, units that have been recently renovated, units with balconies and parking, and units with stable condo fees as well as minimal special assessments.
For reference, see the data below that is broken down by building, for the islands larger condo complexes from Atlantic City to Longport. This data includes the number of active and sold units since the beginning of the year, average sold prices, and absorption rate (the number of months it would take to sell our existing inventory provided nothing new came on the market).
For the very most relevant, accurate and intimate knowledge on the island, please call any of our talented team, whose bios are available on soleilsir.com.