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Shore Real Estate Agents Say Talk Of Poor Housing Market Is Overblown
Prices Have Come Down To Earth, But That Isn't A Sign Of Bad Health, They Say
By Bill McLaughlin
The face of realty is changing overnight. Sales volumes and housing prices have fallen, new developments are few and buyers have become more focused.
The Internet search engine is fueling what many sales people see as a new way of doing business.
"It's absolutely tougher to make a sale, there's so much inventory," said Carole Kuiken, a 25-year veteran of the business. "The Internet has had the No. 1 effect on the business. They've done their homework and already know what they want to see."
Kuiken, manager at Crossroads Realty in Whiting, said the days of just showing a property and waiting for the highest bidder are over, at least for now.
"You still have to work with buyers," she said. "The skill is knowing what is appropriate for their pocketbook. It depends on what a buyer is looking for. You really have to listen carefully, but that's always important."
Kuiken said the number of sales is down and the average price of a home sale generally is down, but she blames the media for a false sense that the industry has collapsed.
"We tend to run in 15-year business cycles and we're on level ground now," she said. "Like a pendulum, we'll begin to rise again soon."
Denise Demicco of Century 21 in Jackson said there are always change-of-life reasons for moving: divorce, death, company transfers and relocations.
"We aren't seeing browsers as much," Demicco said. "On both ends, people are more serious about buying and selling. This is not a market for those who want to see what they can get. But there is a lot of inventory out there."
Sonny Yannon of Beachcomber Realty in Brick, a full-service sales and management operation, said business has picked up in the last six months.
"This is typically the busy season," Yannon said. "The number of housing starts would seem to indicate we're in recession, but nobody wants to declare where we're going."
He said this time last year business was brisk but it died off during the winter months. A lot of inventory has gone unsold even when sellers have reduced the asking price.
"People really only shop for beach properties when the weather is nice," he said. "So it's really hard to say if we're on the upswing or not. I heard on the radio this morning that home prices in the Northeast were up three percent. I guess it's who you talk to because there's no real consensus of opinion."
Donna Walesiewicz, a Crossroads agent in Toms River, said this is a perfect time for first-time home buyers or buy-and-hold customers because interest rates range from 6.5 percent to as low as fivepercent.
"The speculators and the 'flippers' are long gone," Walesiewicz said. "Banks with a number of properties on their books don't want to be in the real estate business, so they're willing to make a deal. People make the market and this is a great time to be a buyer."
Lori F. Peterson of Ann Schuld Realty in Bayville senses a pick up in interest with warmer weather, more realistic pricing and the sense that an election year brings a change in attitude.
"Things were pretty slow at the beginning of the year," Peterson said. "Waterfront properties are a different animal, of course, but sellers have become more realistic. Otherwise, they might be sitting on a house for months."
Walesiewicz agreed. She said Beachwood is a typical case with 73 properties listed for sale, but 14 have gone to contract and 17 have been sold this year.
"It becomes an epidemic," she said. "One sign goes on a lawn and three or four get 'sell fever' in the same neighborhood. Some already sold high and bought higher and now need a bigger home. But everyone gets nervous that they're missing out. It is what it is."
Demicco said throughout Ocean County, there are housing clusters that underscored the "flippers' market" gone bust. In Manahawkin, she said, you can get a threebedroom house never lived in before for $350,000, but there's a catch.
"People are resistant because they want their home to be built to their wants and needs. These houses were built on speculation and some builders learned the hard way not to anticipate the buyers' desires."
Demicco agreed that it's a buyers' market but said now it should be painfully obvious that not every client has the wherewithal to close the deal.
"First-time buyers must speak with mortgage representatives and findout the total costs involved in the transaction," she said. "Understanding what's at stake and what they can afford is vitally important."
Demicco added that the market in townhouses and condominiums hasn't faded, but the higher priced homes, in the $600,000 and up range have slackened.
Many people are in need of rentals, she said, that homeowners might try that avenue to put their property to work for them.
"So many are in need of rentals, they can't afford to buy," she said. "It takes longer to sell a house now, unless it's priced right."
Yannon agreed that sellers are becoming more realistic now, and prices are settling where they were before the buying frenzy of the past few years.
"Sometimes, you think, 'Hey, my neighbor got such-and-such for his house, why can't I get my price' but it doesn't work that way," Yannon said. "The lower price increases the possibility of selling right away, so you have to be realistic."
Peterson said with the tightening of loan availability, homeowners have to be smart. Making their property as desirable as possible is one way to increase value, she said.
"The days of 100 percent financing are gone, but there are still buyers who qualify for lowinterest loans and can make the down payment. My job is putting two sides together."
Demicco said the 2001-05 sales era is regarded now as "the good old days," but three things still sell houses: location, exposure and price.
"We can put buyers in mortgages they can afford," she said. "Builders aren't building as much, so the existing inventory stands out if you market it well and price it right. Sounds easy, but that's where professional help comes in."
Kuiken said she had just gone to contract on two homes, side-by-side, for $800,000 apiece, but they were beach-front properties.
"Everyone is always looking for a bargain," Kuiken said. "But buyers should prepare. They have to score 680 with the three credit companies that do ratings."
"It'll straighten itself out, it always does," said Walesiewicz, an eight-year veteran of home sales.
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