By John L. Linnington, III, President of The Title Company of Jersey
Just in case no one is paying attention, let me let you know what is happening in the real estate market in Cape May County. We are in the third year of a rebound to the recession caused by the bubble of 2008-2009.
As predicted, the start was slow due to the vast number of distressed properties on the market. These properties were left over by the economic implosion caused by the liberal mortgage policies created in 1999.
After a 10 year run up, and a hiccup in 2005, the whole house of cards came tumbling down in 2009. This led to the longest recession in American history.
Property values fell back to 2001 levels losing up to one third of their value, banks failed, and Fannie and Freddie (government mortgage insurance entities) failed as well. The Fed was forced into a bailout and although there is still a volume of failed mortgages out there, the Cape May County real estate market is rebounding.
The proof in the pudding is the numbers. The Title Company of Jersey’s April numbers show a 48 percent increase in orders and a 56 percent increase in income in just our house over one year. As predicted, the demand for a diversified portfolio of second homes and investment property did not go away…it simply sat on the sidelines waiting for a signal it was safe to go back on the field.
It happened fast, as it has during the last three real estate curves dating back to 1975. This one did take a bit longer because of the insane run up of value in 2003-2004. However, this recovery will be more sustained because of new mortgage regulations and a market that is poised for a long reasonable increase in value.
Although we are still not back to 2005 prices, we will probably be there by 2018-2019. So it is important that you don’t miss another chance to get in the game, especially in Cape May County.
Research all you can, and find a real estate brokerage that fits your profile and stick with them (working with multiples will only confuse you and lead to less attention on your behalf). If you are looking to get in the game at bedrock levels, find a brokerage that specializes in bank owned or short sale acquisitions and plan to move up later. You can’t get hurt with that decision.
Hopefully we will be able to ultimately help you with your transaction at The Title Company of Jersey, located in a neighborhood near you. TCJ has done over 500,000 transactions since 1972 – you can trust us with yours.
Call us toll free at (855) 825-8485 or visit www.tcjonline.com.
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