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.
Wrapping up the Summer and the Third Quarter
As we are closing out our third quarter of business in the Longport, Margate, and Ventnor single family home sector, we are happy to see an uptick in units and average sold price. The market is continuing to get stronger over the past several years, and we are well on the way to full recovery from the 2008 mortgage meltdown and the 2012 Super Storm Sandy impact.
- 2013 first 3 quarters of closed business: 213 units with an average sale of $669K
- 2014 first 3 quarters of closed business: 217 units with an average sale of $632K
- 2015 first 3 quarters of closed business: 266 units with an average sale of $647K
As a benchmark, in 2015, we sold more units in the down beach area than 2006 and 2007, both of which are historically considered our best real estate years. A few reasons for the upswing are some extremely good values and shrewd purchases in Ventnor, the introduction of new construction town homes in the boardwalk and marina districts, luxury new construction single family’s, and the insertion of new construction options in the less than one million dollar markets. Some other factors stimulating our real estate markets are, a strong economy, low interest rates, upgrade purchases, high elevations, and some amazing weather with beautiful summers.
Traditionally, we sell 20% of our inventory for any given calendar year in the 4th quarter it’s still a great time to list and sell your home. It’s even a better time to make a purchase decision as some of the shrewdest and best buys are made over the winter months. If we can help in any way, please don’t hesitate to contact one of our many experienced professionals at Soleil Sotheby’s International Realty.