The impact of the pandemic has been felt across every segment of New Jersey’s economy. Unemployment continues to plague many employed in the service industries and retail sector. And real estate conversely continues to ramp higher due to the exodus of individuals fleeing high densely populated areas such as Manhattan.
Yet in South Jersey, Atlantic City continues to face a questionable economic forecast. Now that we’re heading into winter, the casinos with their own capacity and restaurants limited by capacity restrictions are trying to figure out ways to adjust and survive. According to a recent article, in Atlantic City, one out of three workers is unemployed. But news articles are not always the best source of information. Atlantic County’s unemployment rate has actually fallen from 33.8% in April 2020 to 10.1% in October.
A Closer Look
Still, looking at the real estate sector, even in an economy decimated by a pandemic, Atlantic County real estate values have climbed significantly from two years ago.
In October of 2018, the median sales price for single-family home was $182,000. In October 2020 the median sales price for single-family home was $274,000. This represents an increase of over 30% in just 2 years’ of time. In addition to the appreciation a real estate, the inventory of homes for sale over the same 2-year period has fallen from 3,140 to 2,497. That is a significant drop of nearly 30%. Investors and homeowners will have to face some significant hurdles when it comes to property taxes in Atlantic City. For example, property taxes on a home assessed at $210,000 are $8,366 annually. And if you own a home that’s valued at $350,000, taxes will be $11,700.
So in this case, with governments running deficits of 20% to 40%, homeowners cannot hope for a break in property taxes even with an economy that is trying to come back.
On a positive note, the Tanger Outlets The Walk has attracted 2 new opens, one of which was Victoria’s Secret.
The economic conundrum that Atlantic City faces reflects over a 10-year period. Property values in general have lost about 18% over the course of that time.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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