SWAINTON – “In six months so far this year, we have seen transaction totals that would equate to normal one-year results,” County Clerk Rita Rothberg told members of the Cape County Chamber of Commerce May., at a meeting on July 15, at the Avalon Links restaurant.
Rothberg noted that the past year and a half has been unlike anything the county has seen since before the housing bubble that ushered in the 2008 recession.
“I see the trends, but I can’t explain them,” Rothberg added.
She said frantic activity continues, even with inventory of properties on hand at near record highs.
“When a property comes on the market, it causes a swarm of sharks,” Rothberg said.
She confirmed her comments with statistics on transaction totals recorded at the county clerk’s office. In 2018, the number of new mortgages for the entire year was 8,577. In the first six months of 2021, new mortgages are already at 8,724. In 2020, new mortgages reached 12,581, a total never seen since the preparation period of 2005 to 2007 until the economic collapse of 2008.
Many experts argue that this is not another real estate bubble. Instead, they see it as a market adjustment to the new realities of work and school.
Rothberg said she didn’t have the data that would shed light on what’s going on with home values. She said they were going on at climb, a conclusion she can draw from the way transfer fees continue to rise.
In 2020, income from real estate transfers (RTF) reached $ 5.6 million, up 27% from the total of the previous year pre-Covid. In 2021, RTF’s turnover is already $ 3.6 million in six months.
Data from real estate companies adds to the story.
Redfin shows year-over-year increases in the county’s median home price of 18.2%. Zillow has an even higher year-over-year increase of 21% across the county.
The trend remains the same in fundamentally different national markets.
Redfin has the median May sell price in Stone Harbor at $ 2.5 million, up 18% from May 2020, which, in turn, was up 120% from May 2019. A look at Rio Grande shows an increase from June 2020 to June 2021 of 24%, with median days in the market at 10 days.
Stone Harbor tax assessor Margaret Slavin described the market in layman’s terms when she reported to Borough Council.
“It’s just crazy,” she said.
The market is calming somewhat now due to low inventories, tight credit and less pandemic-Related postmans. As the economic recovery takes shape, the level of flexibility that people must remote work will also play a role in the market.
Rothberg said things are still going up,”In terms of the statistics she sees.
How long will this continue? She admits she doesn’t know. She wasn’t trying to predict the future, but was sharing data and insights on the past 18 months of frantic activity.