A Better Way to Buy at the Beach!

As with all things in life, Real Estate Agents and Agencies come in all shapes and sizes, with a perfect fit somewhere out there for everyone! So, How do you know which agent and agency is for you then? Well, when I started in this business at a time when many people were beginning in the real estate business I was asked…”How are you going to set yourself apart from the rest?” “How are you going to be able to stand out amongst the crowd?”

To be quite honest, I really didn’t know the answer to the questions. How WAS I going to set myself apart from the new agents and even more importantly, the experienced ones, with a large following of loyal clients? Well, many months later I think I am just beginning to figure it out and I think that the secret is…To Be Better, to do more, and to be there for my clients! Exceed Expectations! Give my Clients “A Better Way to Buy at the Beach”.

So that is exactly what I set out to do. Firstly, I realized that “Real Estate” is so much more than just buying and selling homes. It’s really all about building relationships and helping people navigate the process that can seem so overwhelming for most buyers and sellers. Getting to the closing table may be the end goal but believe me it begins much further back to the initial meeting with a client and the building of trust one step at a time. Those trusting relationships are the building blocks to success at the closing table. For many buyers, buying a home is about creating memories and building dreams, building generational wealth and family stability. And for some, it may be the beginning of the final chapter to a well lived adventure!

So as I ask myself the questions….

What can I do To Be Better? To Help my Clients? Build Relationships? Give my Clients a Better Way to Buy at the Beach?

To Exceed Expectations, so that when our transaction is complete, I know that our relationship is just in the beginning stages!

And just like that….I already know the answers…Choose

#1 Surround yourself with the best in the business! ✓

#2 Be Thorough, Put the work in! ✓

#3 Pay Attention, Listen and Learn! ✓

#4 Be There, Be Ready! ✓

#5 Be Honest, Be Helpful, Work Hard, Be Yourself! ✓

Support along the way◆Finding Answers to Questions and Solutions to Problems◆ Carry the Burden when needed ◆Be Ready to Celebrate when Appropriate◆

A Better Way to Buy at the Beach!

CAPE MAY COMMUNITIES RESIDENTIAL MARKET STATS – 1st QUARTER 2023

Existing-home sales edged lower in March, according to the National Association of Realtors®. Month-over-month sales declined in three out of four major U.S. regions, while sales in the Northeast remained steady. All regions posted year-over-year decreases.

“Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said NAR Chief Economist Lawrence Yun. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”

“Home prices continue to rise in regions where jobs are being added and housing is relatively affordable,” Yun noted. “However, the more expensive areas of the country are adjusting to lower prices.”

“With overall consumer price inflation calming and rents expected to decelerate from robust apartment construction, the Federal Reserve’s monetary policy will surely shift from tightening to neutral to possibly loosening over the next 12 months,” Yun added. “Therefore, home sales will steadily rebound despite several months of fluctuations.”*

*Excerpt from article by Troy Green, National Association of Realtors “Existing Home Sales Slid 2.4% in March”

Cape May

1st Quarter 2023

Number of Transactions: 21
Average Sale Price: $1,545.670
Average Days on Market: 139
Total Value of Real Estate Sold: $32,459,071

Cape May Point

1st Quarter 2023

Number of Transactions: 1
Average Sale Price: $2,170,750
Average Days on Market: 17
Total Value of Real Estate Sold: $2,170,750

West Cape May

1st Quarter 2023

Number of Transactions: 10
Average Sale Price: $1,053,750
Average Days on Market: 154
Total Value of Real Estate Sold: $10,537,500

Lower Township

1st Quarter 2023

Number of Transactions: 95
Average Sale Price: $411,343
Average Days on Market: 93
Total Value of Real Estate Sold: $39,077,615

Data is from the MLS. All information is deemed reliable but is not guaranteed.

Adventures in Cape May Real Estate – The Benefit of Working in an Office of Full Time Professionals

By Jan Conwell
Salesperson

There is an assumption that a real estate agent’s job is easy. That anyone can be a successful real estate agent. Even working in the administrative end of real estate before becoming an agent I might have agreed, that is until I became an agent myself.

I thought my real estate career was over with my first sales contract. Fresh out of Real Estate school and having been the bookkeeper for Homestead Real Estate since the day it opened, my self confidence wasn’t lacking. Being married to an attorney that practiced Real Estate law didn’t hurt either… and then my first contract started to go off the rails.

First the property was an estate that had riparian rights issues, and with the home being in an estate, there were estate taxes due. Throw in that the house was in the historic district of Cape May and on an undersized lot, I felt my lack of experience would affect the transaction. My resolve to become an agent began to crack.

Of course my husband was a big help, especially with estate taxes and riparian rights but it was my fellow agents at Homestead and my Broker, Dagmer Chew, that helped me through many of the other issues. Be honest was the best advice she gave me. Dagmer gave me a lot of guidance, things like Tell them you are not sure but will find out and get the answers for them…Communicate… Don’t leave them hanging in limbo.,, Tell them what is happening and how soon you expect to get an answer… Stay in touch… The client is relying on your knowledge and connections in the area to help them accomplish their goals of owning or selling their dream home at the shore. All great advice for any real estate agent let alone a new agent handling their first contract!

If honesty was the key to communicating with the client, the cooperation between the agents in the office was an overwhelming benefit to me. Homestead is dedicated to hiring full time agents and the benefits that allows. The relationships that the seasoned agents in the office had built over the years, and were willing and able to share with me, were immeasurable in my ability to grow as a well rounded agent. There is no substitute for the experience and information shared between professionals.

From that first contract I wish I could say it was smooth sailing afterwards but as life goes it hasn’t always been calm seas. In the course of my now 20 year career I have had my share of crazy contracts and quirky circumstances. Unfortunately, I have had some unusual circumstances including a Seller who passed away in the middle of a sale, a Buyer pass away, a client whose family member was accused of murder. I have learned all about the varied mortgage options, septic systems and well testing. FHA/USDA qualifications, termites and mold. I’ve even had the adventure of buying and flipping property and owning rental property.

This experience has made me a good agent, but the honesty and cooperation within Homestead has made me Successful. The saying at work is “A Rising Tide Lifts All Ships” and it could not be truer in Real Estate, especially here at Homestead.

When choosing an agent look for one that considers Real Estate their full time career and is ready to assist you on your real estate adventures.

CAPE MAY COMMUNITIES 3rd QUARTER 2022 vs 2021 RESIDENTIAL MARKET STATS

Recently the National Association of Realtors (NAR) published the 2022 Profile of Home Buyers and Sellers. The data collected spans from July 1, 2021 to June 30, 2022. This specific time frame has seen the market change from low interest rates, and low supply with high demand resulting in multiple bid offers to a market with higher interest rates and a continuing low inventory situation.

According to an article written by Jessica Lautz, the Vice President of Demographics and Behavioral Insights at NAR, there are multiple takeaways from the report. We’ve listed a few of Jessica’s takeaways:

First-time buyers drop to an all time low of 26% from 34% just a year ago – potential first time buyers also face a rise in rental costs making it challenging to save for a down payment.

The age of first-time and repeat buyers hit all-time highs – For repeat buyers, the age has risen to 59 years, up from 56 years in last years report. Americans feel confident taking on a mortgage later in life and purchasing a primary residence.

How far a buyer moved jumped to an all-time high of 50 miles from a range that had been steady between 10 to 15 miles – Another factor is remote and hybrid work settings. In January 2021, many headlines touted that CEOs provided employees with permanent remote work. This allowed buyers to separate themselves from city centers or inner suburbs and migrate to farther areas.

The share of all-cash repeat buyers jumped from 17% to 27% in the past year – Homeowners have accumulated tremendous housing equity in the last decade and hold about $210,000. This has allowed many to avoid holding a property mortgage and pay all cash for their purchase.

Buyer and Sellers use and want the help and expertise of a real estate agent – Eighty-eight percent of buyers used a real estate agent to purchase their home. Buyers are most satisfied with their agent’s honesty and integrity, and knowledge of the purchase process. For sellers, 86% used an agent to help sell their home. Sixty-three percent of sellers used an agent that they had worked with before or that was referred to them. Sellers most wanted their agent to price the home competitively, help market the home to potential buyers, and sell within a specific time frame.

As we can see from the NAR Profile, and local Cape May Real Estate stats listed below, the market has made a shift however inventory remains low which allows for a continuation of a sellers market without the frenzy of the last two years.

Cape May – 3rd Quarter 2022

Number of Transactions: 38
Average Sale Price: $1,248,257
Average Days on Market: 154
Total Value of Real Estate Sold: $47,433,800

Cape May – 3rd Quarter 2021

Number of Transactions: 38
Average Sale Price: $1,043,914
Average Days on Market: 159
Total Value of Real Estate Sold: $39,668,744

Cape May Point – 3rd Quarter 2022

Number of Transactions: 10
Average Sale Price: $1,206,899
Average Days on Market: 115
Total Value of Real Estate Sold: $12,068,999

Cape May Point – 3rd Quarter 2021

Number of Transactions: 9
Average Sale Price: $1,007,222
Average Days on Market: 187
Total Value of Real Estate Sold: $9,695,000

West Cape May – 3rd Quarter 2022

Number of Transactions: 5
Average Sale Price: $873,020
Average Days on Market: 72
Total Value of Real Estate Sold: $4,365,101

West Cape May – 3rd Quarter 2021

Number of Transactions: 4
Average Sale Price: $663,250
Average Days on Market: 146
Total Value of Real Estate Sold: $2,653,000

Lower Township – 3rd Quarter 2022

Number of Transactions: 122
Average Sale Price: $443,727
Average Days on Market: 88
Total Value of Real Estate Sold: $54,134,774

Lower Township – 3rd Quarter 2021

Number of Transactions: 152
Average Sale Price: $377,647
Average Days on Market: 87
Total Value of Real Estate Sold: $57,402,378

Data is from the MLS. All information is deemed reliable but is not guaranteed.

Top Remodeling Projects for Resale

Refinishing hardwood floors is the remodeling project that pays back the most, recovering the highest percentage of its cost—147%—at resale, according to the 2022 Remodeling Impact Report, a joint study from the National Association of REALTORS® and the National Association of the Remodeling Industry.

Home remodeling projects aren’t only offering a potential boost at resale; they’re also making homeowners happier. Painting a home’s interior, adding a home office, installing hardwood flooring, and renovating closets made consumers happiest, the report shows.

The remodeling boom has continued since the pandemic began as homeowners’ desires to spruce up their homes grow, whether through large house additions or simply small one-room painting tasks.

“Quite often, an added benefit to home renovations is the possibility of an increase in the home’s value, which is a reason why some people remodel,” says Jessica Lautz, vice president of demographics and behavioral insights at NAR. “This is especially advantageous to a homeowner who may be considering selling their house or converting the home to a rental property.”

For the report, REALTORS® provided an estimate of the likely dollar value of various remodeling projects that could add to the value of a home during resale that was compared to National Association of Remodeling Industry remodelers’ estimations of project costs.

Besides refinished hardwood flooring, new hardwood flooring also had the potential for a high recovery at resale, at 118%, as did upgrading the home’s insulation, at 100%, the survey shows.

Among exterior projects, new roofing and garage doors had recovery rates reaching 100% of the project costs, according to the report.

Kitchen upgrades also showed a high potential payback at resale. NARI remodelers estimated an average kitchen remodel would cost about $45,000. But REALTORS® surveyed estimated that $30,000 of that would likely be recovered at resale – a 67% recovery rate.

House Projects That Bring the Most Joy

The survey also identified projects that made home renovators want to remain in their homes and those that brought them an increase in the enjoyment of their spaces. The home remodeling projects that received a “Joy Score” of 10, the top score, were:

Painting a home’s entire interior Painting one room Adding a home office

Hardwood floor refinishing Closet renovation Insulation upgrades

The Remodeling Boom Continues

Americans spent $420 billion in 2020 on home remodeling. Contractors report greater demand for services and for larger-scale projects, such as remodels of more than one room, according to the 2022 Remodeling Impact Report. Eighty-six percent of consumers reported that remodeling one area of their home then inspired them to remodel other areas of the house.

“The pandemic has changed the way we use our homes, and many of those changes are here to stay,” Lautz says. “As a result, homeowners needed to reconfigure or remodel how they use their home and maximize space.”

Thirty-five percent of homeowners said one of the top motivators for their remodel was to improve their home’s functionality and livability. Also, 22% of homeowners were motivated to have greater durability in the materials and appliances inside their homes. Fourteen percent were motivated to improve the beauty and aesthetics of their home.

Source: “2022 Remodeling Impact Report,” National Association of REALTORS® (April 6, 2022)

Cape May Communities 1st Quarter 2022 Residential Market Stats

The Cape May Communities continued to show impressive price appreciation over the last few years, but we are starting to see a slowing of sales activity. This change in activity is mostly due to a lack of inventory. At this time, we have not seen a slowing of buyer demand due to the recent rise in interest rates. The average interest rate throughout 2021 was 2.96%, but by the end of the first quarter, rates had risen to over 4.5%.

Cape May

1^st Quarter 2022

Number of Transactions: 36
Average Sale Price: $1,129,876
Average Days on Market: 152
Total Value of Real Estate Sold: $40,675,544

1^st Quarter 2021

Number of Transactions: 51
Average Sale Price: $1,095,492
Average Days on Market: 140
Total Value of Real Estate Sold: $55,870,129

Cape May Point

1^st Quarter 2022

Number of Transactions: 1
Average Sale Price: $2,170,750
Average Days on Market: 17
Total Value of Real Estate Sold: $2,170,750

1^st Quarter 2021

Number of Transactions: 4
Average Sale Price: $1,062,162
Average Days on Market: 141
Total Value of Real Estate Sold: $4,248,650

West Cape May

1^st Quarter 2022

Number of Transactions: 10
Average Sale Price: $1,053,750
Average Days on Market: 154
Total Value of Real Estate Sold: $10,537,500

1^st Quarter 2021

Number of Transactions: 15
Average Sale Price: $905,920
Average Days on Market: 162
Total Value of Real Estate Sold: $13,588,800

Lower Township

1^st Quarter 2022

Number of Transactions: 97
Average Sale Price: $424,021
Average Days on Market: 93
Total Value of Real Estate Sold: $41,130,115

1^st Quarter 2021

Number of Transactions: 141
Average Sale Price: $387,903
Average Days on Market: 86
Total Value of Real Estate Sold: $54,694,376

*Data is from the MLS. All information is deemed reliable, but is not guaranteed.

SOLD In-house

See this exclusive in-house deal!

915 Columbia Avenue, Cape May, NJ 08204

Sold price: $1,200,000

This lovely, 5 bedroom 3.5 bathroom home located just outside the historic district of downtown Cape May has new ownership! The new owners have fallen in love with the proximity to everything Cape May offers, the granite counters in the kitchen, the large, spacious three-season porch off the back, hardwood flooring throughout and so much more. The property has a narrow but deep 38×266 Irregular lot – with enough ground space to add an in-ground pool! The home is now going to serve as a weekly rental, so be sure to keep your eyes on the rental market for this Cape May gem.

Craig Needles had represented the sellers while Janice Conwell and Annie Mullock had represented the buyers in this dual-disclosure transaction. For more information on the sale, or if you’re interested in listing or selling, give us a call today at 609-884-1888!