Ocean County’s housing shortage is keeping home prices high
Anyone who has been looking to buy or sell a home is probably not surprised by the continuing housing shortage in Ocean County and across much of the United States. The National Association of Realtors (NAR) reports that the supply of homes for sale in the U.S, which is commonly expressed in months of supply, reached a historic low of just 1.6 months and about 1.5 months in Ocean County (6 months is considered ‘equilibrium’). In a nutshell; the supply still falls well short of the demand which increases prices.
Market trends for Ocean County (June 2023):
- Home Sales down 24.64%, reflecting a lack of housing inventory
- Days on market (sold, but yet to close) is 29 Days
- Sale Price up 6.93% county wide
- What’s Your Ocean County Home Worth?
Note on the following statistics - When there is a possibility of extreme values (i.e., a waterfront home vs. a small house in Ocean County), the median price is generally the better measure to use as opposed to the ‘average.’ – median is a more accurate representation.
2nd Quarter 2023 Ocean County Market Statistics for Selected Townships in Comparison to 2022
Stafford Twp. (Manahawkin)
- Median List Price: Up 17.07% (up over 67% compared to 2019)
- Median Sale Price: Up 7.40% (up over 67% compared to 2019)
- Sold Listings: Down 16.8% (due to lack of inventory)
- What’s Your Stafford Home Worth? Get a FREE, Instant Valuation
Barnegat Twp
- Median List Price: Up 8.25% (up over 54% compared to 2019)
- Median Sale Price: Up 3.34% (up over 60% compared to 2019)
- Sold Listings: Down 19.8% (due to lack of inventory)
- What’s Your Barnegat Home Worth? Get a FREE, Instant Valuation
Waretown
- Median List Price: Up 25.70% (up over 43% compared to 2019)
- Median Sale Price: Up 6.94% (up over 40% compared to 2019)
- Sold Listings: Down 20.3% (due to lack of inventory)
- What’s Your Waretown Home Worth? Get a FREE, Instant Valuation
Lacey Twp (Lanoka Harbor and Forked River)
- Median List Price: Up 16.07% (up over 78% compared to 2019)
- Median Sale Price: Up 6.95% (up over 46% compared to 2019)
- Sold Listings: Down 21.7% (due to lack of inventory)
- What’s Your Lacey Twp Home Worth? Get a FREE, Instant Valuation
Berkeley Twp (Bayville)
- Median List Price: Up 9.52% (up over 56% compared to 2019)
- Median Sale Price: Up 5.00% (up over 57% compared to 2019)
- Sold Listings: Down 18.7% (due to lack of inventory)
- What’s Your Bayville Home Worth? Get a FREE, Instant Valuation
Toms River Township
- Median List Price: Up 6.68% (up over 45% compared to 2019)
- Median Sale Price: Up 1.28% (up over 50% compared to 2019)
- Sold Listings: Down 34.2% (due to lack of inventory)
- What’s Your Toms River Home Worth? Get a FREE, Instant Valuation
Brick Township
- Median List Price: Up 6.25% (up over 42% compared to 2019)
- Median Sale Price: Up 2.33% (up over 42% since 2019)
- Sold Listings: Down 28.7% (due to lack of inventory)
- What’s Your Brick Twp Home Worth? Get a FREE, Instant Valuation
Buyers
Fewer properties are available for sale, which can lead to months of searching, numerous showings, and declined offers.
Some buyers are being forced to make adjustments to the size and features they want in their new house. The largest obstacle for many would-be homeowners is the shortage of reasonably priced housing.
Search for Homes in Ocean County
Many homes are selling very quickly and for far more than they were listed for. Budget-conscious buyers don't have much room for repairs or bargaining.
Sellers
Being a seller in this market might be challenging also. While a homeowner can sell their house more quickly and for more money, the true challenge comes when they have to find a house that meets all of their requirements and fits into their particular time frame. Here are some ideas of where to live if you’re thinking of selling.
How Long Will the Housing Shortage Last?
Shortages in the housing stock have happened previously. When there is less than 6-month supply of housing, a shortage exists. Rebuilding the supply of homes for sale normally takes about a year. However, it may take longer due to the harm that pandemic has done to the housing market.
Bottom Line
The current housing shortage is a result of a number of factors, including the pandemic, inflation, and elevated interest rates. But ultimately, it comes down to a supply and demand issue that may take some time to resolve.
Karl Hess provides expert real estate services to residential buyers and sellers in Ocean County. Contact us today for more information on Ocean County Real Estate and for professional assistance navigating this complex home market.
References:
- https://www.bankrate.com/real-estate/low-inventory-housing-shortage
- https://www.rocketmortgage.com/learn/low-housing-inventory
- https://monmouthoceanrealtors.com/