Foreclosures in Atlantic City-Hammonton, NJ

Foreclosure Rate Overview

• Foreclosure rate in 2023: 1 in every 307 housing units.
• Total foreclosures (Jan-Jun 2023): 429 properties.
• Comparative analysis: A slight decrease of 1.6% from 2022.

Atlantic City Housing Market Dynamics

• Market competitiveness: Not very competitive.
• Median sale price: $197K, up 34.1% from last year.
• Average selling period: Homes sell in about 76 days.

Key Points:

• Multiple offers are rare.
• Homes typically sell for about 5% below list price.

Real Estate Market Trends

• Impact of COVID-19: Significant influence on market demand and supply.
• Historical perspective: Decreased supply with increased demand due to low interest rates during the pandemic.

Market Forecast:

• Home values: Expected to continue increasing.
• Rent prices: Projected to rise alongside home value appreciation.
• Interest rates: Anticipated to increase, impacting home prices.
• Rental market: Gaining popularity among investors.

Foreclosure Activity and Market Implications

• National trend: Increase in foreclosure activity across the U.S.
• Local impact: Expected rise in foreclosures in Atlantic City-Hammonton.
• Investor opportunity: Potential for acquiring properties in a market returning to normal foreclosure activity levels.

Key Takeaways:

• Rising foreclosures: A return to pre-pandemic levels after a period of artificially low activity.
• Market adaptation: Investors and homeowners must adapt to changing dynamics.

Atlantic County NJ Foreclosures

The Atlantic City-Hammonton metro area in New Jersey, a region characterized by its significant tourism and gaming industries, has been notably impacted by the rise in foreclosures. This impact is particularly evident in the real estate market dynamics of the area. In the first half of 2023, the foreclosure rate in this area was one of the highest in the country, with approximately one foreclosure for every 307 housing units. This rate places Atlantic City-Hammonton as the second-highest among 223 metropolitan statistical areas in the U.S. with populations of over 200,000. The total number of foreclosures in this area from January to June 2023 was 429, representing a slight 1.6% decrease from the same period in 2022​​.

Atlantic County Foreclosure Market

The Atlantic City housing market is characterized by its relatively low competitiveness. As of the last data, the median sale price of a home in Atlantic City was $197K, marking a significant 34.1% increase since the previous year. The median sale price per square foot was $212, up 28.4% from last year. Homes in this market tend to sell in around 76 days, with multiple offers being rare and the average home selling for about 5% below the listing price​​​​.

Post-Pandemic Foreclosure Rates

The impact of the pandemic has been particularly pronounced in Atlantic City, with local unemployment rates being less insulated from volatility compared to most of the country. This has affected consumer confidence in the housing sector, posing challenges to the market’s recovery. However, the market has shown resilience and offers opportunities, especially for long-term investors. The pandemic’s influence on the housing sector has led to increased demand and decreased supply, resulting in a significant rise in home prices. The Federal Reserve’s lowering of benchmark interest rates during the pandemic made houses more affordable, spurring buyer activity. However, with interest rates now on the rise to combat inflation, the market is experiencing a shift, with active listings down significantly and home prices increasing​​.

Atlantic City Foreclosures

Looking ahead, the median home value in the Atlantic City housing market is expected to continue increasing, driven by supply and demand constraints. The market is likely to remain a seller’s market, with too many buyers competing over too few homes. This trend is expected to cause median home values to increase further. Rent prices are also projected to rise, following the trend of home value appreciation. With higher acquisition costs and lower profit margins, more real estate investors in Atlantic City are turning to the rental market. Long-term rental properties are becoming a more attractive investment option, with monthly rents helping to offset higher prices. Additionally, the lack of inventory in the housing market is driving more tenants to rental units, reducing the risk of vacancies​​​​.

Foreclosure activity, according to ATTOM Data Solutions’ February 2022 U.S. Foreclosure Market Report, is witnessing a significant increase across the country. This trend is expected to continue in the Atlantic City real estate market as well, particularly as moratoriums and government assistance programs expire. The rise in foreclosures is attributed to the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to protective measures for financially impacted homeowners. It’s important for investors to prepare for this increase in foreclosures, as it presents both challenges and opportunities in the real estate market​​.

The Atlantic City-Hammonton, NJ area is witnessing one of the highest foreclosure rates in the nation, which is influencing the local real estate market in various ways. The rise in foreclosures, alongside the pandemic’s impact and changing economic conditions, is creating a unique set of challenges and opportunities for real estate investors and homeowners alike.

FAQs

1. What is the current foreclosure rate in Atlantic City-Hammonton, NJ?
   • As of the first half of 2023, the foreclosure rate in Atlantic City-Hammonton is approximately one foreclosure for every 307 housing units. This rate is among the highest in the country and reflects a slight 1.6% decrease compared to the same period in 2022.
2. How does the foreclosure rate in Atlantic City-Hammonton compare to other US cities?
   • The Atlantic City-Hammonton metro area has the second-highest foreclosure rate among 223 metropolitan statistical areas in the United States. This high rate highlights the unique challenges facing the local housing market, especially in comparison to other cities.
3. What is the state of the housing market in Atlantic City?
   • The Atlantic City housing market is not very competitive, with homes typically selling in about 76 days. The median sale price of a home was $197K last month, marking a significant increase from the previous year. This increase in median sale price indicates a recovery trend in the housing market.
4. How has the pandemic affected Atlantic City’s real estate market?
   • The pandemic has had a profound impact on Atlantic City’s real estate market. Unemployment rates in the area were less insulated from volatility, which, in turn, affected consumer confidence in housing. Despite these challenges, the market has shown resilience, offering opportunities for long-term investors, particularly in the rental market.
5. What are the current trends in the Atlantic City real estate market?
   • Current trends include a rise in home values and rent prices, driven by supply and demand constraints. The pandemic has resulted in increased demand and decreased supply, contributing to a significant rise in home prices and making the rental market more attractive to investors.
6. What is the forecast for Atlantic City’s real estate market?
   • The forecast for the Atlantic City real estate market includes a continued increase in home values and rent prices. The market is expected to remain a seller’s market, with high competition over a limited supply of homes. Interest rates are also projected to rise, impacting home prices further.
7. How are rising foreclosure rates impacting Atlantic City’s real estate market?
   • The rising foreclosure rates in Atlantic City are starting to return to pre-pandemic levels after a period of artificially low activity due to protective measures for homeowners. This increase in foreclosures presents both challenges and opportunities within the real estate market, especially for investors looking to acquire properties.
8. What opportunities do rising foreclosures present for real estate investors?
   • Rising foreclosures in Atlantic City present opportunities for real estate investors to acquire properties at potentially lower prices. The market’s shift offers a chance for investors to aid distressed homeowners in avoiding foreclosure while securing deals for themselves.
9. How competitive is the Atlantic City housing market?
   • The Atlantic City housing market is currently not very competitive. Homes often sell for about 5% below the list price, and multiple offers are rare. This trend may indicate a buyer’s market where purchasers have more negotiating power.
10. What should potential buyers and investors know about Atlantic City’s housing market?
    • Potential buyers and investors should be aware of the increasing home values and rent prices, along with the rising foreclosure rates. Understanding these trends is crucial for making informed decisions, whether for personal home purchases or investment opportunities in the real estate market.

#Atlantic-County #Atlantic-County-NJ-Foreclosures #Foreclosure #Foreclosure-Homes #Foreclosure-Listings #Foreclosures #New-Jersey It's Nice to Share