My wife and I recently had dinner at the Deauville Inn in Strathmere. They are offering Two for One Dinners on Monday and Thursday evenings. We had a great meal for the price. I would recommend everyone taking advantage of this special that the Deauville has to offer.
I recently read an article on the real estate market that explains the circumstances behind the slow down in sales and encourages buyers and sellers to work with the market you are currently in and not look at what the market was months or years ago. I think thiere is much truth in this and I hope you enjoy reading it. If you have any comments, please send them to me.
M. Anthony Carr
9/16/06
When it comes to pricing your house when you’re ready to sell it, keep in mind you must sell in the market you’re in today. It doesn’t matter what your former neighbor got six months ago, or what properties are listed for now. All that matters is this-whatever the last sale price in your neighborhood of your model, that’s probably your sale price now. When you’re looking at what you’ll gain on the sale of your house, let’s keep it in perspective. If house prices increased year after year at four percent per year and then suddenly people were selling their houses for one percent less than last year’s asking price, would that be reasonable? If so, then when property is moving up at twenty percent per year for several years and then suddenly you have to sell it for five percent less than the prices last year, would that be reasonable? The challenge is when we move from percentages to dollar amounts. If five percent represented $5000.00, most people wouldn’t blink. It’s when five percent represents $25,000.00 that sellers start to freak. We are experiencing astounding rates of appreciation as a region, twenty percent from 2004 to 2005 prices. Many homeowners have experienced a doubling in property values over the last five years. The average home price is now about $540,000.00, according to the local multiple listing system. Now, price appreciation has subsided and is sitting at a mere five to eight percent region wide. Still sounds pretty healthy, right? You would think. However, there are stories from the field on how sellers are defending their prices as if their lives depended on it. While sellers are sitting on hundreds of thousands of dollars of equity, they can’t stand the idea of dropping their prices by $25,000.00 or $50,000.00 to sell it today. The house that was $260,000.00 in 2001, is now selling for $569,000.00 today. But some sellers now want that same type appreciation and can’t imagine selling it for less than $589,000.00. Bringing it down the $20,000.00 or $40,000.00 to sell the property seems, well, just not fair. Sellers seem to be saying to buyers, “I’ll drop my price, just make an offer.” While buyers are replying, “I’ll make an offer, just lower your price.” It’s this stalemate that has played a part in creating an abundant supply of houses on the market in our area. We’re talking upwards to 200 percent more homes on the market in any given year-to-year comparison. Is it affecting prices? Sure. Are sellers going to lose money? Well, in some cases, but not in most cases. For sellers staying in the same area, keep in mind, if you have to drop your price by five percent, then the seller of the house you’re buying (usually a lot more expensive) is probably going to drop the sales price by about the same percentage point. It means that while you may “loose” money on the sale of your home, you’ll more than likely “gain”it on the purchase up. Keep in mind, the market is the market. When it is time to buy, buy. When it is time to move, then sell. Work with the market you’re in, not in the market you wish it would be.
I recently found an article in the paper dated November 9, 2006, and I thought the property owners of Sea Isle City would enjoy reading it:
SEA ISLE CITY: Voters passed a change of government referendum Tuesday that will set the stage for a major nonpartisan election in the spring. Next year, residents will elect officials to fill five council seats and a mayor’s seat, following the referendum that doubled the size of elected local government. The public vote passed 767 to 659 on Election Day and produced a nearly 70 percent turnout. Debate on the referendum brought sharp opinions from both sides. “In the spring, I hope that a number of people express an interest in participating in the government, so we have an election with a variety of people, old and new- whoever wants to do something,” said John Fee, one of the leaders of the referendum drive. The large turnout, Fee said, was a key in lending the change of government validity. “ I think the volume of turnout was important. Nobody can turn around and say only a fraction of the people spoke. It was a very healthy turnout,” he said. The new government will include five at-large council members and a popularly elected mayor. The City Commission is currently composed of three members, including a mayor appointed from its own ranks. “The commissioners are there to serve the people, and this is what the people want, and this is the way we’re going to go,” Commissioner Angela Dalrymple said. Mayor Leonard Desiderio said both sides of the issue waged good campaigns and worked hard to get their points across. “People were voting before they went to work, before they were going to vacation, before they were going wherever they were going. I was happy to see that,” Desiderio said. Desiderio, also a Cape May County freeholder, won re-election to that office Tuesday. Desiderio said if he decides to run in the spring, he would run for the mayor’s seat. “I love being mayor of Sea Isle City and whatever form of government would be there,” he said. “I would run for the mayor’s seat, but I’m going to weigh all my options. I’ve had discussions with people early this morning for an Assembly seat. And I’m like, whoa, let me digest this election first,” he said. Commissioner James Iannone said he will not seek re-election next year as he approaches his retirement and has served city government for more than two decades. Iannone did not support the change in government and had said it was sour grapes from the people upset with last year’s election, when all three incumbent candidates won re-election. But he said he will work to make the new form of government a success. “I don’t think six people can do a better job than three. However, I’m not one to moan and groan after the election just because we lost it. I will support the new form of government,” he said. Dalrymple on Wednesday said she couldn’t say if she will seek election next year.
SEA ISLE VOTERS SAY “YES”
To a surprise of most, the Sea Isle City voters said, “Yes” to the larger city government. This will allow for a City Administrator, and two more councilmen. For all of you who were wondering, the answer is “Yes”.
This is something that was discussed in our office the other day. My broker had a discussion with his financial advisor about the Real Estate and Stock Market
His financial advisor made an interesting comment to him. He said: “Buying stocks are just like buying real estate. For some reason, everyone wants to buy their shoes on sale, but nobody wants to buy a stock - or real estate- when it’s on sale!”
I also find this to be true.
Real estate has appreciated on average 17% per year over the past 25
years in Sea Isle City. The market saw a downturn in 1991-1992, and now
again in 2005-2006. It seems to me that properties are on sale right now.
Interest rates are down again - 30 year fixed rate is about 6.5% with 0
points.
If you are interested in purchasing a property at the Shore, and hadn’t
done so prior to 2001; NOW is the time to buy. I believe the next six
months (prior to the Spring season) will be the best time to purchase a property.
Don’t wait for EVERYBODY to get back in the market because once this starts to happen, prices will start to rise, and the opportunity to buy a property on sale will be gone.
Let me help you be a part of the group who will talk about the great opportunity you saw when real estate properties were on sale at the Jersey Shore.
I look forward to hearing from you.
Sincerely,
Joe Prato
As many of you are aware, the real estate market in Sea Isle City, along with almost every other area, has leveled out over the past several months. By doing so, this leaves a great opportunity for buyers to take advantage of the market at the shore. With low interest rates, reduced prices and motivated sellers, opportunity knocks.
If you have missed the opportunities the shore has had to offer in the past, don’t miss out again. As an investor, I’ve just put in an offer on an investment property in Sea Isle myself. The conditions are great for buyers.
The people at the Colonnade Inn have asked me to announce that much of the information on the internet about them is currently out of date, including the phone number that many older sites list. Unfortunately, many people end up calling the wrong number that they find on other websites.
Here is the correct information:
The Colonnade Inn
4600 Landis Avenue,
Sea Isle City, NJ 08243
Phone: (609) 263 - 8868
Fax: (609) 263 - 8869
http://www.thecolonnadeinn.com
I recently read an article in the Atlantic City Press where a tourist was complaining about those who live at the Jersey Shore and how they do not welcome tourist into their resort towns. It stated that all the locals want is the tourist’s money but don’t want the crowds and congestion that comes with it. I have to disagree with the article, because almost everyone I know realizes that it is the tourist that spend the money in our shore towns, help the economy, and help keep our taxes at a reasonable rate.
Most people I socailize with looks at the summer crowds as a change in season. Just like Summer, Fall, Winter, and Spring, I see the excitement of summer a change and I welcome it just as I welcome the fall and the quiet.
So to those who think we don’t appreciate you coming to our towns, think again. The majority of us welcome you.
Last weekend was the unofficial end of a great summer in Sea Isle City. Most people consider Memorial Day to Labor Day as the summer season. But many of us know that September and May can be as rewarding in Sea Isle as the summer months. The weather and water are warm, the beaches are much less crowded, and many enjoy an extra two months of Sea Isle at its best.
Fall festival is the second weekend after Labor Day and offers the same fun in Sea Isle as “Skimmer Weekend”. There is a food court, vendors with goods for sale, and an antique car show, just to mention of few of the many activities scheduled for the weekend. So come on down to Sea Isle City for enjoyment in the fall! Read the rest of this entry »
If you are coming to the Jersey Shore for a family vacation, but are not fortunate enough to be staying on one of the barrier Islands, you may want to consider a campground or resort area near Sea Isle City.
Sea Isle has been accommodating tourists who vacation off the Island for many years. They offer at no charge family fun nights during the week, which brings in vacationers from all over Cape May County. The City Tourism department has added a Family Movie night, which allows families to bring their beach chairs and enjoy an outdoor theater with a family movie once a week.
So come to Sea Isle City, whether you are staying at one of our resorts accommodation, or vacationing off shore. It’s a great town to visit!!!