Asset Based Lending is committed to helping our borrowers reach their financial goals through smart real estate investments, so our expert team has decided to highlight markets with lots of money-making potential. Each month we will do a deep dive into a real estate market that can benefit a real estate investor looking to fix and flip, start new construction, or embark on some other form of real estate investing. This month’s market is Ocean County NJ, a real estate market that has fluctuated significantly in previous decades but in recent years found its stride as a stable market for investors. Thanks to the massive shift from urban to suburban living in the tristate area and low housing inventory, Ocean County NJ is currently a hot market and set to be very profitable for real estate investors who can find the right deal.
Ocean County NJ By The Numbers
First, we’ll take a deep dive into the local economy to highlight its current standing and growth potential. As of October 2020 the unemployment rate for the county is sitting at 10% as the area is still recovering from the economic impact of COVID-19, but every month since May has seen a 1% decrease in unemployment, marking a steady recovery in one of the most heavily affected states. For comparison, the unemployment rate pre-COVID was sitting at 3.6% which was equal with the national average and a good indicator of where the local economy will bounce back to. The county recently overtook Union County to become the 6th most populated in the state, seeing a stable 1% growth every year for the last decade and growing even more this year due to the massive shift away from urban areas like New York City and Philadelphia.
As for the real estate market, Ocean County NJ is seeing a tremendous year with average home sale prices sitting at $332,745, a 23% increase from the previous year. Currently 1608 homes have been sold in the county during 2020, marking a nearly 36% increase from 2019 with two months remaining in the year. On average, homes are remaining on the market for 28 days, which is a nearly 53% drop from last year and a top indicator that the county is currently a seller’s market. The county was a hit with new construction in the previous year, with 2258 new builds occurring in the county during 2019 and on track to match or surpass that by the end of 2020. Over 60% of the county are homeowners, and those moving to the county are looking to own instead of rent. As it stands, Ocean County NJ is on a steady pace to recover economically from COVID and its current real estate market is a prime location for both fix and flips and new construction projects. To narrow down which parts of the county are performing best, let’s break down stats for some of the area’s top towns.
Tom’s River, NJ
The anchor city of Ocean County NJ is Tom’s River, and its currently one of the best performing cities for real estate in the county. The average home sale price for the town is $290,000, which is a 26% growth from the previous year. Up until now 367 homes have sold this year which is already a 35% growth from last year, despite two months remaining in the year. Of the homes sold, 39% sold for above the initial asking price, which is a whopping 99% increase from the previous year! Homes are spending an average of 24 days on the market, which is 57% lower than 2019. Numbers like these illustrate the potential success for fix and flips and new construction projects in the Tom’s River area, as home buyers are willing to spend more and spend fast to secure their home in an increasingly competitive seller’s market.
Barnegat is in a similar position to Tom’s River with average home sale prices also sitting at $290,000, marking a nearly 19% growth from last year. Currently 71 homes have sold in the town for 2020, which is a 9% increase from the previous year even with two months remaining. Homes are spending an average of 32 days on market which is nearly a 50% decrease from the previous year, and sellers are receiving almost 100% of their initial asking prices. In fact, 38% of the homes sold this year received more than their asking price, which is a nearly 77% increase from the previous year. While it’s clear that many home buyers are trying to secure their homes with higher offers than asked for, it’s important to note that barely any homes are having to lower their listing price in the area. As of now, only 7% of homes sold this year had to lower their asking price, which is a nearly 39% decrease from the previous year. One of the worst feelings as a real estate investor is to lower your asking price to unload a piece of property, but Barnegat NJ is setting up investors for successful sales for both fix and flips and new construction.
Manahawkin is also performing well, although the town has a higher barrier to entry cost with average home sale prices sitting at $328,000, marking a 9% increase from last year. Currently 79 homes have sold in the town this year, which is a 75% increase from 2019 and highlights the real estate shift occurring in the town compared to last year’s stationary market. On average, homes are spending 21 days on the market which is a 48% decrease from the previous year. The real impressive numbers come from the final sale price of homes, as Manahawkin homes are averaging 101% of the total listing price. The number of homes that sold above listing price is 47%, which is a staggering 110% increase from the previous year! Once again, home buyers looking to move to this area are willing to spend more and spend fast to compete against other buyers, pushing this area into a seller’s market and benefiting investors for both new construction projects and fix and flips.
With all the uncertainty New Jersey has faced throughout 2020, the thriving real estate market in areas like Ocean County NJ are an indicator that things are continuing to improve and can even surpass what they were before. The shift from urban to suburban areas has been very beneficial for New Jersey real estate, and Asset Based Lending is proud to help real estate investors in these areas close on deals and achieve their financial goals. Our team is dedicated to providing the most reliable hard money loans NJ has to offer, focusing on closing deals quickly with flexible underwriting that is customized to fit your exact project. If you’re looking for a hard money loan for new construction or fix and flips in Ocean County NJ, contact us today.