Avalon & Stone Harbor - August Market Update
Summer is flying by fast as we enter our last month of beach season. We are expecting another very busy August with vacationers and owners fully enjoying the 7 Mile Island. The real estate market in Avalon & Stone Harbor is moving at a record pace. In today's fast paced market, it's more important than ever to align yourself with an agent and a brokerage that offers in-depth knowledge, unwavering commitment, and persistence. The rapidity of the market means that you need an agent who can negotiate your best offer if you're selling or find you an off-market listing if you're interested in buying.
2021 Year To Date vs 2020
All of the buzz this year surrounding the housing market has consisted of the narrative of houses being sold within days of being listed, with multiple offers, and more often times than not being sold over the already inflated asking price.
When taking a zoomed out look of the year to date numbers, we see a -21.5% decrease in properties listed, a 17% increase in properties sold, and then a -14% decrease in average sales price. The first two numbers fit right in to explain the historical decrease in island inventory, but the third seems out of place. Although the average price is generally assumed to be somewhere in the middle, it doesn’t always accurately represent the distribution.
Zooming in, we can see that there was a 7.5% increase in the median sale price from 2020 to 2021. The median sale price adjusts for outlier situations that skew the average price, which in this year over year sample is due to the influx of 20 units sold in 2021 thus far under $500,000. The same timeframe in 2020 only saw 2 units sell for under $500,000.
When adjusting for the outlier sample of 18 additional properties sold under $500,000, we end up with an average sale price of $2,151,623 and a 8.5% sold price increase year over year.
To finish this summary - we saw houses year to date are selling 3.5% under asking price. The same timeframe last year was selling 6.5% under asking.
When looking at the first half of 2021 compared to 2020, you will see some significant changes. These numbers are very interesting to think about if you are exploring our coveted market. New listing that have come up in the market have decreased 28.6%. New properties that become listed for purchase are typically turned over quickly. We will explore our current inventory below, where standing inventory has remained low. The total properties sold through Q1 & Q2 have increased by nearly 7%. The average sale price of these properties have also increased slightly, by 2.1%. Lastly, the median sale price has increased significantly by 17%.
Active sale inventory for Avalon & Stone Harbor real estate has remained the same for this month. We now sit at 72 total properties for sale, which is where we were at the start of July. Of those that are active, 50 are in Avalon, and 22 are in Stone Harbor. Motivated buyers in this market still need to be ready to react if a property in their price range gets listed! The number of buyers looking for property are very high. We expect to see inventory in Avalon & Stone Harbor increase a bit as more properties are testing the market, but we may be seeing the same type of market through the summer.
Here is the current inventory breakdown:
45 Single Family
5 Vacant Lots
Last month we saw 42 new listings hit the market. In July of 2020, there was 53 new listings. This is a 31% decrease in new listings for July compared to last year. Only 18 properties sold in the month of July - The highest sale was $4,100,000, while the lowest was $256,500. The average sale price was $1,589,000. The median sale price was $1,501,500.
Here is the price breakdown for the sales:
9 properties under $1 million
3 properties between $1 million and $2 million
4 properties between $2 million and $3 million
2 properties over $3 million
There are a total of 72 properties that are currently under contract in Avalon & Stone Harbor.
Please contact us to discuss the value of your property and explore our marketing advantages with Sotheby’s International Realty. Interest rates remain historically low. If you are considering a purchase in Avalon or Stone Harbor, it is important to consult with a lender to discuss mortgage products, borrowing options, and the pre-approval process. Contact us to find the best value in properties currently listed on the market.
Market Update - Avalon & Stone Harbor Rentals
As we near the end of our Summer renting season, we are finding many tenants leaving reservations to rent the same property in 2022. It seems like inventory will remain low going into the 2022 season. The demand for weekly rentals are very high. Many tenants are inquiring earlier than normal to reserve a property. If you are looking to rent next year, contact an agent in our office to find a home that suits your desired lifestyle. Owners will not return 2022 rates and availability until the 2021 season ends. When we receive back the authorization forms, we will be able to reserve properties and create leases. Connect with an agent who can find options for NJ vacation rentals on the 7 Mile Island. New inventory does populate, we can send you properties before they become active on the market!