By Laura Fezzuoglio

Courier Times – published September 15, 2007

Despite real estate woes in many areas of the country, some places at the New Jersey shore are now seeing bidding wars again.

The combination of good rates and increased inventory, together with motivated sellers, has prompted some buyers to finally seek their place in the sun.

“When the media started publicizing problems with the mortgage industry, buyers got nervous and there was a temporary slowdown in activity. Buyers are just starting to regain their confidence and have resumed their searches and again are putting in offers on properties,” says Realtor Sherri Lilienfeld of Weichert Realtors SeaGate in Margate.

She adds that with this growth of buyer confidence and activity has come “some competitive bidding on properties that are priced well.”

“Our market is doing well, despite the negative real estate news occuring nationwide.  All the negative talk has caused some people to sit on the sidelines and delay their purchase until they see how things play out,” says Realtor Randy Leiser of Avalon Real Estate Agency in Avalon.

George Coffenberg, broker of record for Prudential Zack Shore Properties’ office in Rumson, says that the combination of low rates and motivated sellers is something that hasn’t happened in the recent past.

“This is the first time in quite a few years that we’ve seen low rates and motivated sellers. Rates are supposed to drop this month and with sellers more flexible and motivated than previously, this presents buyers with a great opportunity,” he says.

This year has been busier than last, with company sales volume up 24 percent from 2006, adds Coffenberg. Though it has 11 offices along the coast, Prudential Zack Shore does the bulk of its business in the vicinity of Long Beach Island   where it originally began in 1925. Coffenberg says that real estate there has been especially strong.

“LBI is booming. We’ve sold houses from $500,000 to $5 million and it’s primarily second homes on that island. People were waiting for the prices to fall and they didn’t so they’re buying now,” he says.

Coffenberg adds that inventory is up this year from last, though homeowners are still able to sell their properties if priced realistically.  The median sales price for both condos and single family homes in Monmouth and Ocean counties decreased this year from last according to data from the Multiple Listing System (MLS).

“It’s been relatively flat. There’s been no great depreciation in sales price, but there has been a reduction in asking price. Buyers are willing to pay what the ‘closed comps’ (recent sales) support, but not greater. I’ve seen bidding wars on properties because they’re priced appropriately.”

In Atlantic City and the ‘down beach’ areas of Ventnor, Margate and Longport that Lilienfeld serves, prices have increased for condos in Longport and Atlantic City and for single-family houses in Longport and Ventnor in 2007. Inventory for condos and singles is up in some areas, down in others.

In Avalon, Leiser says he found it “very interesting” that new purchase contracts are up 34 percent from last year (from 151 to 203), despite a small decrease in the median sales price in Avalon – from $1.3 million to $1.275 million.

Inventory for multi-unit properties, typically owned by investors, is way up since they have been the hardest hit group of buyers at the shore in lieu of the sub-prime fallout.

“Shore property investors are having a very difficult time getting financing, even if they have very good credit, so this is another reason why the investor-buyer has disappeared. The fall-out of the sub-prime market has really hurt commercial investors and affected the type of loans they are able to obtain,” explains Lilienfeld.

Most primary and second-home buyers, however, have had no difficulty obtaining financing, especially if income and assets can be fully documented, adds Coffenberg.  Coffenberg and Lilienfeld say that second home sales at the shore are usually a mix of cash buyers and financing buyers, with the typical mortgagee putting down 20 percent on the purchase.

Lilienfeld says that buyers for single family homes most often are families with children while condominiums appeal most to retirees who spend the winter in warmer clients and desire the low maintenance of a condo.

Many buyers are from Eastern Pennsylvania, New York and North Jersey, says Coffenberg.

“Areas to the south, like Atlantic City are popular with Philadelphia people and Monmouth County to the north has more of a New York influence.  The most desirable locations at the Jersey shore are on LBI.   It’s an equal distance from Philadelphia, New York … it’s a centralized spot.”

Communities like Red Bank, Asbury Park or Ocean Grove in Monmouth County are akin to the arsty eclectic mindset of somewhere like New York or even New Hope, Coffenberg adds.

Sellers along the coast can expect a home to remain on the market an average of 120 days, he says, adding that the trend of home staging is becoming increasingly more popular as homeowners look for ways to make their property stand out among the competition.

“The selection of properties is good, the interest rates are still reasonable. Prices are still level.  For buyers, it may well prove to be a great time to enter the market.  Plus, we always remind people what the shore is really about – 30 years from now, they’re going to be talking about all the fun they had with the grandkids at the shore,” says Leiser.

To contact Sherri Lilienfeld directly, you can reach her at (609) 287-1795 [cell] or Sherri@NJ-ShoreRealEstate.com. To get useful information about buying and selling real estate at the Jersey Shore visit her web site www.JerseyShoreDreams.com.

To contact Randy Leiser call (800) 967-7796 x212 or email Randy@RandyLeiser.com.