Overall, 2006 was a very slow year with property values coming down and leveling off. Most buyers waited to see what was going to happen and how low the prices would come down.
We had a huge inventory of new construction because purchases and permits for the new construction occurred in the fall of 2005 before the slow down started. This lead to a large number of new construction properties being completed in the spring and summer of 2006, and not too many buyers. Owners waited, and eventually lowered the prices until they started to sell. November and December of 2006 started showing an increase of interest in these properties. Our office had a good December compared to the rest of the year. It seems that buyers are starting to purchase again.
My advise to anyone who is still interested in owning a property at the Jersey shore is to start looking now. We are only one week into January and the calls for properties are starting to come in. The news media is suggesting that the 18-month market correction that followed the four-year housing boom has just about run its course. Interest rates are still very reasonable, (about 6%), which makes the conditions very good to buy a property at the shore. I am personally looking for another investment property because I believe this is the right time to do so, before everything starts taking off again. 2007 looks to be a good year for Real Estate at the Jersey Shore.