Stimulus Package has little affect yet.

Contrary to the improving conditions of markets in many areas of the country, Atlantic County NJ continues to decline. The suffering, casino based economy, continues to pummel housing prices and the total number of sales.

Continued layoffs, reduced construction/renovations and reduced work hours have severely inhibited Atlantic County residents’ ability to capitalize on the increased affordability available. Affordability has greatly increased due to reduced prices and historically low interest rates.

Although unemployment has increased, under-employment, because of reduce hours of work for casino employees, is having a devastating affect on household incomes. Reduced incomes and the new tightened lending standards have lowered the number of qualifying buyers.

The numbers are in and they’re not pretty!

Entire County

Overall, the total number of residential homes closed in the first 4 months of 2009 was 438 and is down from 601 closed for the same time period in 2008. That represents a 27% decrease.

Overall average sales prices of residential homes declined from $327,645 to $284,117 during the comparative 4 month period, representing a further 13.28% decrease in residential values.

The total number of condominium sales closed in the first 4 months of 2009 was 128 and is down from 255 closed for the same time period in 2008. That represents a staggering 49.4% decrease. 

Average sales prices of condominiums declined from $243,819 to $228,778** during the comparative 4 month period, representing a further 6.2% decrease in condominium values.

Mainland  Communities Only

The total number of mainland residential homes closed in the first 4 months of 2009 was 320 and is down from 427 closed for the same time period in 2008. That represents a 25% decrease.

Average sales prices of mainland residential homes declined from $258,420 to $220,391during the comparative 4 month period, representing a further 14.7% decrease in residential values.

The total number of mainland condominium sales closed in the first 4 months of 2009 was 64 and is down from 137 closed for the same time period in 2008. That represents a staggering 53.28% decrease. 

Average sales prices of mainland condominiums declined from $164,964 to $154,047 during the comparative 4 month period, representing a further 6.6% decrease in condominium values.

Overall, the average sale price of 3 bedroom residential homes has dropped below $200,000 and 4 bedroom residential homes have averaged under $290,000.

Supply Levels.

The number of available homes for sale in Atlantic County remain above the national average. Based on the April rate of sales it would take approximately 13.5 months to absorb the properties currently available, if no additional properties were placed on the market for sale.

Have We Found Support Levels??

Sales figures, for April only, suggest we may be experiencing some affect from the First Time Home Buyer Tax Credit. But remember that there are always seasonal affects and normally increased demand in the Spring. We’ll have to wait and see if the trend continues.

The average sale price of 3 bedroom mainland residential homes edged up to $201,204 compared to the year-to-date average of $196,479. However, the average sale prices of 4 bedroom mainland residential homes declined slightly further to $282,458 compared to the year-to-date average of $282,836.

The average sale price of mainland condominiums increased to $165,413 from the year-to-date average of $154,047.

It would appear that we may have found support levels for the current entry level housing market. The increased demand created by the First Time Home Buyer Tax Credit may be, and may continue, to place some upward pressure on the lower priced, more affordable homes in Atlantic County.

Sales of mainland residential homes and mainland condominiums combined totaled 384 for the 4 month period. 61% had an average sale price below $200,000. This strongly suggests that the majority of activity in the Atlantic County Real Estate market is First Time Home
Buyers. 
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**
one sale of a $1,250,000 condominium was excluded from the statistics because it was not representative of the normal market. Nor did any similar comparable exist in 2008.

Source: South Jersey Shore Regional Multiple Listing Service. Information deemed reliable but not guaranteed.