Holiday City Carefree Market Overview
In general, the level of market activity tends to rise and fall throughout a typical year.
The annual pattern is that there's more "foot traffic" (the number of bodies out looking) in the late winter through mid spring, which lowers somewhat and levels off from July through August, then increases during September through late October before slowing until late January to early February when the cycle repeats itself.
Interestingly, while the volume of foot traffic varies greatly throughout a typical year, the actually number of sales doesn't tend to fluctuate as dramatically. This is because there are more "lookers" than buyers out earlier in the year, but the number of actual buyers is reasonably consistent throughout most of the typical year.
Holiday City Carefree - Q3 2020 vs Q3 2019
About the Data Used
The sale data in the following chart was taken from the Monmouth-Ocean Regional Multiple Listing Service (MLS).
Keep in mind, that not all homes are sold through the MLS. About 3% are sold between family members or friends, another 5% are sold directly by builders, and about 2% are sold without a real estate agent. These percentages are reflective of data published by the National Association of REALTORS®.
The sales data included in the typical MLS represents about 90% of all home sales and closer to 95% of all sales considered to be "arm's length" which represents what type of sale most home sellers will encounter.
Holiday City Carefree Market Data
The following chart compares the 3 most important categories that provide insight into the strength of a residential market area:
Data for Holiday City Carefree is in the 2nd yellow row from the top.
Holiday City Carefree Market Data Analysis
As we can see, there were only 1 additional home sale in Holiday City Carefree in Q3 2020 than in Q3 2019. This is a very good indication of the strength of this market area when considering the unusual market conditions we've experienced in 2020 from the impact of COVID-19.
Even the number of Days on Market was only slightly higher in Q3 2020 from that of Q3 2019 to Q3 2020; again, a very strong indicator of market consistency.
When a market area has a supply of available homes that's relatively equal to the current demand for those homes, the value of those homes tend to remain relatively constant.
However, these sales data tell us there was a 6.43% increase in the Average Sale Price in Q3 2020 when compared to the Average Sale Price in Q3 2019.
Could the number of sales of renovated homes be the contributing cause? Let's find out.
Price Influence of Renovated Homes
Because the age of many of the homes in Holiday City Carefree average up to about 40 years, they've reached the point where the original features are no longer considered attractive or desirable to the current crop of home buyers.
Consequently, the homes in this section have become very attractive to builders who buy, renovate, and resell them. And, because the sale prices of these newly renovated homes are substantially higher than the sale prices of homes that have not been renovated, their inclusion in the Average Sale Price gives a misleading indication.
For example, in Q3 2020, 18 (or 52.94%) of the 34 sales in Holiday City Carefree were sales of renovated homes. The average sale price of the renovated homes in Q3 2020 was $219,178 while the average sale price of the non-renovated homes was $167,653; over 23% less (23.51% less, to be precise).
In Q3 2019, 11 (or 33.33%) of the 33 sales were sales of renovated homes. The average sale price of the renovated homes in Q3 2019 was $227,400 while the average sale price of the non-renovated homes was $161,036; just about 30% less (29.18% less, to be exact).
There is continual buyer demand for homes in Holiday City West. And, based on my experience and observation, it's my opinion, that this continual buyer demand is substantially driven by people who buy the renovated homes in this section.
However, home sellers should be cautious of 2 significant issues:
1. Don't try to sell a non-renovated home anywhere near the typical prices being paid for renovated homes. And,
2. Not to sell your home for LESS than it's actually worth merely because your home isn't renovated.
Have any Questions?
Contact me if you have any questions about the information in this article. I'd be happy to discuss anything you may want more information about.
If you're thinking of selling, now or in the near future, let me give you my professional opinion of the probable selling price you could get for your property. I'll provide you with the most current sales and all of the existing homes you'll be competing against for your buyer.
By the way, in addition to being a professional New Jersey real estate sales professional since 1971 (click here to see my professional credentials), I've also sold real estate in Ocean County and lived in Berkeley Township since the early 1970s.
I've been a resident of Holiday City South for several years, and even sold my mom her Lakeview in Holiday City South when it was new in 1985. In fact, my sister still lives in that home.
I'm also not a "high-pressure" guy.
We can chat. And, I'll give you some information that will certainly be helpful to you in weighing your decision.
In the worst case - we become friends.
Contact me, anytime. I look forward to hearing from you.