Fall 2019 Market Update: Trends & Updates in the Avalon, Stone Harbor, and Sea Isle City Markets
Lingering summer weather has faded and it’s all fall here now on Seven Mile Island. And with Halloween parades and Thanksgiving feasts just around the corner, what better time to take one last look at how the Avalon, Stone Harbor, and Sea Isle City markets fared late in the summer season.
Mortgage rates dropped across the country in 2019, which is always good news for buyers—especially those who are looking to invest in second homes and vacation investment properties. On Seven Mile Island, where inventory is always active and interest has grown rapidly in the past several years, we’re seeing a general uptick in certain areas. Interestingly though, these upticks tend to vary depending on if you’re looking at Avalon and Stone Harbor or at Sea Isle City. Despite being neighbours on the coast, there are some distinct trends separating these various markets (and a lot linking them together, too).
So what does the market look like as we say goodbye to summer and hello to fall? Here are some of the most interesting findings—and market distinctions—from our August 2019 Market Minutes housing report.
Homes Continue to Sell, Despite the End of the Summer Season
For an area famous for its thriving summers, the local market didn’t seem to slow down much as the available beach days dwindled down. In Avalon and Stone Harbor, 34 units were sold in August—an increase from the same time last year. Sea Isle City did see a slight decrease in units sold this time of year versus last year, however August numbers stayed stable with the immediately preceding months. Our take? Investors are snagging up hot properties now in anticipation of next summer’s rental surge.
Active Inventory is Rising in Sea Isle City
Sea Isle City represents a smaller market than the combination of Avalon and Stone Harbor, but unlike the latter pair, which saw a minimal but notable 5% decrease in active inventory versus this time last year, Sea Isle City has experienced quite the opposite with an impressive 38% jump in houses for sale compared to August 2018. Before we get too excited though, it’s worth mentioning that late summer 2018 was uncharacteristically slow in the Sea Isle City market, with the increase being more in line with the numbers we’ve seen in the past.
Sale Prices Are Going Up, Up, Up
Following a trend that we’ve been seeing for some time now on Seven Mile Island, sale prices are continuing to soar in all of our tracked markets. In Sea Isle City, sale prices increased by a median of $158,500 compared to last year, while in Avalon and Stone Harbor we saw sale prices increase by a median of $107,500. This is a telling trend, since even with a slightly lower number of units sold (Sea Isle City) and a decrease in active inventory (Avalon and Stone Harbor) buyers are clearly continuing to see the value in purchasing a coastal property—and in fact, they’re valuing it even higher than before.
Buyers who are interested in investing in a Seven Mile Island property are encouraged to act fast, since these low mortgage rates aren’t likely to last for too much longer. As for sellers, while we are entering the slow season in real estate local trends don’t appear to be too discouraging. With high demand and high sale prices, it’s still a great time to sell.
Ready to make your move? Get in touch with our team at the RJ Soens Group today!