A Look Back at 2023
As we enter a new calendar year, we look back at the previous year to draw upon market conditions to pave a path forward for the upcoming market. 2023 saw the lowest recorded number of homes sold in both Avalon and Stone Harbor on record, with only 189 homes selling in total. Compare 2023 with a ‘normal’ pre-pandemic year such as 2017 or 2018, and in those years as a group, we sold 417 and 393 respectively. That is more than half what traded hands in 2023! Part of the drop-off is due to trade-up Buyers being almost non-existent in our market in 2023. With many locking in historically low mortgage rates over the last few years, those who had the means and needs to move up to a better home or location sat on the sidelines.
When the Federal Reserve rapidly increased the federal funds rates, an unprecedented move in history, it consequently influenced mortgage rates to rise. This shift made the need or the want to conduct real estate less appealing. Despite this, property values in Avalon and Stone Harbor have significantly increased over recent years.
Despite the various economic challenges faced from 2022 to 2023, Avalon and Stone Harbor remained popular destinations for investment. In response to last year's regional banking crisis, many investors chose to secure their funds in the island's properties, viewing them as stable assets to weather the storm that was coming.
Looking Forward to 2024
We saw a very quiet fall of 2023 with the market not knowing which direction the Fed planned to pivot while seeing strong jobs reports and a resilient consumer still spending money. That sentiment has since changed for the better, especially once Jerome Powell and the Fed declared they would hold the Fed Funds rate steady with potential cuts coming in 2024, all heading towards a ‘soft landing’.
Since that meeting in December, we have seen mortgage rates come down off of their highs, with jumbo rates dipping into the mid-5s! We are very bullish on the 2024 real estate market outlook. With mortgage rates hopefully continuing to slide, and a strong consumer flush with cash who has been sitting on the sidelines for a few years, this could be a great year for Avalon/Stone Harbor Real Estate!
For more information on how to leverage these financial opportunities to purchase a vacation or investment home, reach out to The Sudell Team today!
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197 63rd Street, Avalon
$6,195,000
5 BR | 4 BA
Located just steps away from the beach, this beautiful property is equipped with underground utilities and a low dune line, further enhancing the dynamic ocean views. The property, built by DL Miner and OSK Builders, features a spacious deck space offering waterfront views, and a spacious layout, designed for both entertaining and relaxation.
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227 22nd Street, Avalon
$3,049,000
5 BR | 7 BA
Brand new construction located just steps away from the center of town, and ready for summer enjoyment. The property features wide plank hardwood floors throughout, an open floorplan, custom cabinetry, and high-end appliances.
Investment Opportunity! This property has the potential to yield $150,000 or more a season!
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5878 Ocean Drive, Avalon
$7,999,000
6 BR | 7 BA
Unique and expansive bay front home with unobstructed sunset and bay views, and only one block from the beach. Featuring 6,380 sq. ft. of conditioned living space, one of the island's largest pools, and a detached guest house with bedroom, bathroom, tv room, and kitchenette. Enjoy island views from the 1,000 sq. ft. rooftop deck, featuring a cabana, refrigerator, and sink for prime entertainment space.
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281 7th Street, Avalon
$2,195,000
4 BR | 2.5 BA
A unique opportunity to own in the quiet Northend of Avalon with a charming and well-maintained 4 bedroom, 2.5 bathroom property. The prime location is just a short walk to the 8th Street recreation complex, and beach access. For those looking to redevelop, a 3-story single family home up to 3,780 sq. ft. can be built with inlet and water views from the 2nd and 3rd floors.
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This beautiful West Cape May home is just a short walk to downtown, restaurants, and shops. The home features two master suites, an open floor plan with a gourmet kitchen boasting granite countertops and stainless steel appliances, including a wine fridge. Congratulations to the new family eager to create summer memories in this ideally situated property!
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Congratulations to the buyers of this soon-to-be-finished 6BR/6.5BA single-family home, located just blocks from the beach and town center. With new construction, they had the exciting opportunity to make selections and customize to their preference, ensuring a perfect fit for their needs. This beautiful property, complete with a pool and an elevator, will be ready just in time for the summer season. |
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Contact us today if you are thinking about
buying, selling, or renting!
Direct: 609-967-0334 | Office: 609-967-4200
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