A real estate slowdown that began at the end of the summer in 2005 has affected most of the national hot markets and has crept into the Ocean County market place.
Agents who check the MLS “hot sheet” for daily real estate activity notice more expired listings, price reductions and listing withdrawals. The days on the market have also been steadily increasing. Another indication that the market may have seen its peak, is that executives at large home building companies have sold billions of dollars worth of company stock.
One reason that properties are remaining on the market longer is over pricing. Based on the sale price of a neighbor’s home which sold earlier that year, some sellers want to price their house as if the frenzy is still on going. Indications are that incentives will be needed to get top dollar.
The slowdown has also jolted the people who have gotten their real estate license recently, encouraged by the perceived ease of income in the real estate market. In 2005, the Monmouth/Ocean Board of Realtors had 2000+ agents join.
Mortgage rates are creeping up giving buyers less purchasing power and some lenders have started to tighten credit standards, making it harder for buyers to get loans.
Indications are that home sales will level off at the usual 6-8% annual appreciation. This marks a normal trend.
Agents who check the MLS “hot sheet” for daily real estate activity notice more expired listings, price reductions and listing withdrawals. The days on the market have also been steadily increasing. Another indication that the market may have seen its peak, is that executives at large home building companies have sold billions of dollars worth of company stock.
One reason that properties are remaining on the market longer is over pricing. Based on the sale price of a neighbor’s home which sold earlier that year, some sellers want to price their house as if the frenzy is still on going. Indications are that incentives will be needed to get top dollar.
The slowdown has also jolted the people who have gotten their real estate license recently, encouraged by the perceived ease of income in the real estate market. In 2005, the Monmouth/Ocean Board of Realtors had 2000+ agents join.
Mortgage rates are creeping up giving buyers less purchasing power and some lenders have started to tighten credit standards, making it harder for buyers to get loans.
Indications are that home sales will level off at the usual 6-8% annual appreciation. This marks a normal trend.
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