From ABC 6 News:
Home prices continue to fall across the U.S. Sellers are taking a hit, but for buyers there are big bargains.
It is not as bleak as some parts of Florida or Nevada, but the Jersey Shore Real Estate Market is struggling.
For sellers, it’s a tough dose of reality, for buyers it could mean bargains.
In once booming areas, its estimated prices are down15 to 40 percent.
Don Pettinelli has beautiful views from his Harbor Cove North home in Somers Point, but few neighbors, only 4 of the 14 upscale units sold in the last four years.
“I just like the water,” Don said.
Don paid $900,000 in 2009, now the developer is opting to auction off the rest, starting bids as low as $175,000; which was unthinkable a couple years ago.
“The purpose is to sell inventory that the seller has been struggling with for some time since market retrenched, and we’re going to take them to a public auction. People are going to vote on what they think they are worth in a setting among their peers,” explained Glen McDonald of Max Spann Auction Company.
The idea of auctioning off luxury condos is not a shock to locals like kayaker Craig Bauman.
“People trying to sell their houses so they are cutting prices almost in half just to get rid of them,” said Bauman.
Don Pettinelli has mixed emotions. On the up side the auction will set a real price for these units that should help him convince local government to lower his taxes, the downside, he says lowers the value of his property.