About the Real Estate Market
Stone Harbor and Avalon are the premier beach towns on the South Jersey Shore and have become a favorite destination for wealthy second-home buyers and savvy investors. There are no bad neighborhoods in either Stone Harbor or Avalon and all real estate is very expensive.
The Stone Harbor second-home market is unlike the primary home market. In Stone Harbor, the property owners are very comfortable and conservative. It is a real estate market driven by emotion, pride of ownership, plus desire to make shrewd investment. Real need to buy or sell rarely enters the equation.
The factors contributing to our meteoric escalation in real estate prices are many:
- We are an easy “weekend escape” destination for those who live and work in the major financial centers in the Northeast. It’s less than a two-hour drive from Philadelphia. Make the drive in just over three hours from NYC or Baltimore-Washington.
- There are a growing number of Baby Boomers, many whom have inherited the savings of their Depression-era parents, and sudden "empty-nesters," who are looking towards retirement in a cottage-by-the-sea. The children will visit. The in-laws will visit. Grandchildren will visit. Even teenagers love Stone Harbor.
- Our particular towns-by-the-sea are ever so pleasant because of our low-population density, our lovely streets, our upscale homes, and our “small-town” feel.
- The bottom line: "They're just not making any more ground at the Shore!" The growing demand for our fixed commodity drives the prices up. And up. Stone Harbor and Avalon real estate has proven to be one of the best investments around.
Historically, real estate sale prices began the great upward spiral in early 1998 when an approximate 3% per month increase began and continued through most of 2000. During 2001 and 2002, although prices did not continue to wildly spiral up, the good news is that Stone Harbor property values remained very strong through stock market fluctuations and the national tragedy on 9/11 and its effects. Through those years, although the number of sales declined, the average sale prices did not drop, and indeed the price of some categories of properties increased approximately 1% per month.
Many Seven Mile Island observers have noted that throughout 2003 and 2004, sale prices reverted back into the “pre-Nasdaq crash” mode and increased an average of 3% per month. In the case of waterfront properties, the increase was often 4+% per month.
2005 Market:
In 2005, the market slowed with 18% less units sold: In 2005, there were 80 single family homes sold in Stone Harbor, versus 97 sold in 2004. But the average sale price increased by 21%: $1,748,513 in 2004, versus $2,120,535 in 2005. We had an average increase of 1.75% per month in 2005.
2006 Market:
The current market is again slow with few properties under agreement since January 2006. This created a BUYERS MARKET in Stone Harbor and Avalon.
Buy Now:
Since the number of sales is statistically down, it is a good time to buy.
Location: By the sea.
Location: Close proximity to high-density urban centers.
Location: Most upscale island on the South Jersey Shore.
