Friday, March 2, 2007

Market Changes Affect High Priced Homes the Most

According to the most recent report from the Otteau Group, one of New Jersey’s preeminent appraisal and real estate market analysts, Ocean County is experiencing a market transition wherein buyers have greater bargaining power than any time since 1991.

According to their report, contract sales thru July 2006 were down 19% and unsold inventory was up 62% compared to 2005. For homes priced under $600,000, there is a 9 month inventory supply; $600-$1 mil a 21 month supply; $1 mil-$2.5 mil a 17 month supply and over $2.5 a 60+ month supply. This indicates that moderate priced houses will see the first recovery from the current downswing.

With mortgage rates down, buyers have an many excellent choices for a home purchase now. We are still recommending seller incentives to attract a sale.

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