By MADDY VITALE
Home values for a typical house in Ocean City are on the cusp of being $1 million, according to recently released figures.
The market remains robust, with properties in high demand, while the supply is low. Realtors say the resort continues to grow as a popular place for people to raise their families thanks to a good school system, relatively low taxes compared to other shore towns and the desire to live near the beach or bay.
Ocean City ranks No. 42 in a recently released list of the New Jersey towns and cities having the most expensive homes. The typical home value in Ocean City was $971,766 in December 2022, an increase of 13 percent compared to $859,857 in December 2021, according to figures compiled by the online real estate giant Zillow and published by NJ.com.
“People really want to be in Ocean City. They want to bring their families. Ocean City’s rise in prices comes down to the basic economics of supply and demand,” Pete Madden, broker/owner of Goldcoast Sotheby’s International Realty in Ocean City, said in an interview Monday.
Madden, who is also the City Council president, said that while the prices are higher than in prior years for a typical home, the taxes remain lower than other shore towns in the region.
“We maintain a pretty low tax base in terms of what is passed on to the general public,” he said. “Keeping the taxes low really helps people to be able to buy here.”
“The strong school district has really made it a destination for families to make a year-round home,” he noted.
In addition, Madden said now, more than in recent years, there are fewer rentals.
He attributed it to more people working remotely, especially during the COVID-19 pandemic. Around 2020, during the height of the pandemic, many second homeowners turned their vacation properties into full-time residences for a while, and of them, some made the situation permanent.
Kevin Redmond, broker/owner of Long & Foster in Ocean City, said there are many reasons Ocean City’s real estate market is hot. Much of it is due to its uniqueness, he said.
He pointed out that while the typical home is inching toward the $1 million mark, there is still housing stock available for those with smaller budgets.
Of the roughly 280 properties currently for sale in the resort, there are about 50 homes or properties that are around $500,000 and about 50 homes that are less than $500,000, Redmond said. But, he emphasized, the buyer may need to put a little work into the home in the way of renovations.
“I think what makes Ocean City unique from some of the other shore towns is that a lot of other towns have limited offerings. For example, Sea Isle City has a lot of side-by-sides and four- and five-bedroom units,” Redmond said. “Avalon predominantly offers single-family homes. Ocean City is one of the only towns that have everything from an efficiency to a large multimillion-dollar property on the beach or bay.”
Redmond also said Ocean City gives first-time homebuyers the ability to purchase a shore home.
“Ocean City gives the first-time homebuyer who always dreamt about living at the shore the opportunity to buy something in their price point,” he said.
With lower property costs, however, the chances of finding the move-in-ready home are low.
“People sometimes have to change their thought processes about what they want. They may have opportunities to buy a home from the 1970s or ’80s and take it and do a little renovation,” Redmond noted. “That is when you could have the opportunity to get a bargain here and there.”
But it is difficult with the decreasing number of properties to sell at any given price point, he acknowledged.
Like Madden, Redmond spoke of the decreasing number of properties to sell or rent.
In prior years, the normal housing stock for sale was between 700 or 800 properties.
“We have extremely limited inventory than what is normal here,” Redmond said.
That is when realtors throughout the island work harder for the sellers and the buyers, he added.
“We work with buyers and sellers. We work hard for the people we are looking for,” he said. “We have clients and customers who rely on us. It is hard. People save their whole lives and have dreams of owning at the shore. That dream is becoming more frustrating.”
There is hope, despite real estate values for a typical Ocean City home nearing $1 million, because of the various price points of properties still out there.
“Everyone enjoys Ocean City the same, no matter what your price point,” Redmond said. “There’s a great Boardwalk, downtown and great beaches. That is the one thread that everyone loves equally, and it doesn’t matter your price point.”
