As predicted, the 2013 Real Estate market in Cape May remained a true buyers market as we saw more stability. Total transactions rose slightly while the average and median sold prices fell slightly (around 1% decrease). Again, better news for the buyers and 2014 should see more of the same.
Overall, we had the same type of year as 2012 and that is positive. To put it in perspective, in 2010 we saw a 63% increase in total transactions only to see it fall 18% in 2011. We saw another 17% increase in total transactions from 2011 to 2012 but more significantly, we followed up the growth in 2012 with a very stable 4% increase in 2013. In other words, we had back to back years of growth and that hasn’t happened since the boom.
Speaking of the boom, I want to point out that even though it is still fresh in our minds, it occurred a distant 9 years ago. Historically, real estate trends repeat in 10 year cycles and if decades of statistics hold true, we are naturally going to see better times sooner than later. This will remain a slow process, but the earlier you are aware the better. When the historically low interest rates start to rise, the prices will gradually rise as well and there is no better time to buy than now!
2012 already experienced average sold price increases in the $500,000-$600,000 range. This drove the market and it is great to see the confidence in this range. The $800,000 target range saw an increase as well. Cape May Point had the biggest gain as they experienced a 33% increase in sold transactions and their median sold price increased 22%. A surge of new construction was the major factor and with more planned for 2014; this is an area to follow. Another category to closely monitor is the condo market as 2013 saw the return of the condo purchase. Condo sales were up 24% and with prices down, beach-front has never been more affordable. However, given our current market conditions, this thought process is universal to any type of property in Cape May, West Cape May and Cape May Point.
Year after year I always like to take a look at the numbers and make logical market predictions. However, with everything said, Cape May is not a numbers town. People buy in Cape May because they simply want to be here and enjoy everything that makes us so special. Have a Happy New Year and I look forward in working with you in 2014.
If you would like a complete update of available listings with your exact specifications, please feel free to contact me anytime.
Jersey Cape Realty