Realtors optimistic about market for 2012

Last Updated on Tuesday, 10 January 2012 11:57 Written by Ann Richardson Wednesday, 11 January 2012 00:00

OCEAN CITY – Lured by warm weather, visitors have been flocking to the shore to soak up salt air and sunshine, and they’ve been buying more than pizza, fudge and popcorn.

With interest rates the lowest they’ve been in 30 years, they’re house hunting again.

“Things are looking good, I’m very optimistic,” said Maria Marinelli, a sales agent for RE/MAX and the president of the Ocean City Board of Realtors.

Sales, she noted, are up 20 percent over last year.

“We’re moving forward,” she said.

In 2009, there were 610 closed sales island-wide, including single family, condo and multi-family properties. In 2010, there were 643 and in 2011 the number jumped to 733.

“This is the third year of positive growth,” she said. “We have an additional 80 properties under contract right now. There are 963 active properties, on the market and we’ve been running 1,000 or 1,100 or so. That’s good.

“We’re out of the worst of it, unless something happens at the federal level that would affect interest rates or the ability of our clients to obtain a loan,” she said.

The market, she said, was adversely affected in 2011 after the nation’s bond rating was lowered for the first time in history. Threats of a government shutdown, Congressional battles over raising the debt ceiling created anxiety amongst would-be buyers.

“They held off for a while, they were worried about their jobs and the economy and then we had the hurricane,” she said, of Hurricane Irene. The storm grazed the Jersey Shore the last week of August, causing visitors and second homeowners to pack it up early. They left the area and many did not return for a while.

In December, however, people started taking another look.

“Fifty-eight homes closed in December,” Marinelli said. “We didn’t have much of a fall buying market, but December was great. We really lost the fall market because people were so hesitant, but in December things really picked up. Their fears subsided and they’re coming back into the market.

“Real estate is still a good investment, people still want to be in Ocean City,” she said. “Low interest rates are helping to fuel the market.”

At Goldcoast Sotheby’s International Realty, broker and owner Burt Wilkins said he, too, is optimistic.

“It really picked up at the end of 2011,” he said. “A lot of people came out of the woodwork to look at houses. Our listings were shown a lot over the holidays. It was very, very busy; much more so than the past few years.

“Consumer confidence is up and interest rates are down, things are looking good,” he said.

Prices, he said, remain flat.

“Overall, the average price year-to-year, 2010 to 2011, is identical,” he said. “Personally, I’m encouraged. Everyone I talk to, car dealers, people in construction, people on the street, everyone had a good December and they’re feeling more confident.”

Goldcoast, he said, was up about 40 percent for 2011.

“We did extremely well,” he said.

The first eight months were gangbusters, the hurricane shut the island down and the fall was a bust, he said.

“But we finished with some really good activity. We had a busy summer and December, a usually slow time, was busy.

“I think people are tired of being in a negative economy,” he said. “Human nature is generally more positive than negative, and people are tired of being complacent. The hurricane really let the air out of the balloon. People went home, sort of like after 9/11. We had a month there where everyone was in shock, and a lot of our Pennsylvania clients had damage at home, flooding and so forth to deal with. We’re looking forward to a good year.”

Berger Realty’s 32nd Street office was busy this weekend, according to rental manager Deedra Bowen.

“We had a really good weekend,” she said. “It was a really nice start for the season; we’re ahead of last year at this point. We had a lot of people come down, a lot of people just pop in and look for a place.”

Those in the hunt were the “early birds,” looking to get a jump on the best picks for the summer.

“They do their research at home, on-line and then come down to take a look,” she said. “The weather helped, but you’d be surprised. Even when it’s cold and snowy they come down, more than you might think. Obviously, there are a lot more people when the sun is shining.”

Brian O’Donnell works out of Berger’s 55th Street office.

“The phones are ringing, now more than ever,” he said. “There has never been a better time to buy. We did a lot of rentals over the weekend and with interest rates so low, we’re selling properties.

“The weather is helping, but in general we’re really encouraged about the spring market,” he said. “There are some nice properties on the market, some really great opportunities.”

Joan Farrell, working out of Monihan Realty’s Battersea Road office, said rental activity is way up and her office is seeing a lot of activity amongst buyers.

“I think we’re in a pretty balanced market right now,” she said. “Condos are selling, single family homes are selling.”

Though prices remain flat, sales of single family homes are up in terms of volume, she said.

For some second homeowners, “moving up” means moving closer to the beach, adding more bedrooms and purchasing a property capable of generating more rental income.

For others, however, “moving up” means leaving the duplex - and its shared ownership – behind; in favor of a coveted single family home and the privacy it offers.

“It’s the way it is for some people,” Farrell said. “They want their own space, more privacy. Some people realize that they’re not good at sharing. They find that they are looking more for a second base of operation rather than a second home to rent when they’re not using it.

“They’re looking for a place that they can spend most of their time once they work things out, they retire and come to the shore,” she said. “They would rather own their own home when they think about retiring.”

Single family homes in the north end are hard to come by, she said.

“There are only five or six right now under $600,000,” she said.

Condo sales are still brisk.

“There are some who don’t have unlimited funds and they are migrating to the condo market,” she said. “They want new, they want the amenities, the granite and upgrades, and they don’t want to deal with the older home. It all depends on what people are looking for, everyone’s circumstances are different.

“The market is looking good,” Farrell said, adding that she would love to see a string of nice weekends through the spring.

 

To comment on this story see oc.shorenewstoday.com

---

< Prev		Next >