Ocean County home prices continue to rise mainly due to low supply
Low housing supply is a persistent issue in Ocean County, driving up real estate prices and making homeownership increasingly difficult for a significant portion of the population. The root causes of this problem are multifaceted, but one key factor is the slow pace of new construction relative to the growing demand for housing. As the Ocean County population increases, the inability to match supply with demand leads to a scarcity of available housing units. This scarcity, in turn, results in fierce competition among potential buyers, driving property prices to higher levels.
Market trends for Ocean County (Sept 2023):
- Home Sales down 24%, reflecting a lack of housing inventory
- Days on market (sold, but yet to close) is 26 Days
- Sale Price up 14.85% 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.
3rd Quarter 2023 Ocean County Market Statistics for Selected Townships in Comparison to 2022
Stafford Twp. (Manahawkin)
- Median List Price: Up 14.91% (up over 65% compared to 2019)
- Median Sale Price: Up 11.66% (up over 76% compared to 2019)
- Sold Listings: Down 24.6% (due to lack of inventory)
- What’s Your Stafford Home Worth? Get a FREE, Instant Valuation
Barnegat Twp
- Median List Price: Up 7.25% (up over 53% compared to 2019)
- Median Sale Price: Up 1.19% (up over 67% compared to 2019)
- Sold Listings: Down 17.3% (due to lack of inventory)
- What’s Your Barnegat Home Worth? Get a FREE, Instant Valuation
Waretown
- Median List Price: Up 25.25% (up over 46% compared to 2019)
- Median Sale Price: Up 21.62% (up over 52% compared to 2019)
- Sold Listings: Down 24.8% (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 16.47% (up over 73% compared to 2019)
- Median Sale Price: Up 9.02% (up over 77% compared to 2019)
- Sold Listings: Down 29.2% (due to lack of inventory)
- What’s Your Lacey Twp Home Worth? Get a FREE, Instant Valuation
Berkeley Twp (Bayville)
- Median List Price: Up 7.85% (up over 56% compared to 2019)
- Median Sale Price: Up 6.38% (up over 62% compared to 2019)
- Sold Listings: Down 15.3% (due to lack of inventory)
- What’s Your Bayville Home Worth? Get a FREE, Instant Valuation
Toms River Township
- Median List Price: Up 7.78% (up over 45% compared to 2019)
- Median Sale Price: Up 2.33% (up over 52% compared to 2019)
- Sold Listings: Down 24.4% (due to lack of inventory)
- What’s Your Toms River Home Worth? Get a FREE, Instant Valuation
Brick Township
- Median List Price: Up 7.25% (up over 43% compared to 2019)
- Median Sale Price: Up 2.47% (up over 53% since 2019)
- Sold Listings: Down 29.5% (due to lack of inventory)
- What’s Your Brick Twp Home Worth? Get a FREE, Instant Valuation
The impact of low housing supply on prices is most evident in skyrocketing property values. When the number of homes for sale is limited, potential buyers are willing to pay more to secure a place to live, leading to bidding wars and inflated prices. For first-time buyers and lower-income individuals, this situation can be particularly disheartening as they find themselves priced out of the market. The ripple effect extends to the rental market, where high demand and limited supply translate to soaring rental rates, making it increasingly challenging for renters to find affordable housing options.
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.