Five years ago, 8 towns in Monmouth and Ocean had average home prices of $1M. Now it's 23.
Nearly two dozen towns in Monmouth and Ocean counties had average residential sales prices of at least $1 million in 2023, up from eight in 2019 before the pandemic hit, according to figures from the New Jersey Division of Taxation.
The exclusive list — becoming less exclusive each passing year — included newcomers Little Silver, Bradley Beach and Ship Bottom. And it was a sign that buyers shrugged off high mortgage rates and continued to flock to towns that featured nearby beaches or easy access to New York City.
"I think inventory still remains extremely tight, so demand is far outpacing supply," said Stacie Bender, an agent with Compass, who recently listed a 4-bedroom, 3½-bath home for sale in Little Silver for $1.3 million. The home quickly got seven offers and a sale is pending.
"For homes that are priced correctly, we're drawing out multiple offers, for sure," Bender said.
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An Asbury Park Press review of state data found 23 towns in Monmouth and Ocean counties that boasted an average home sale price of at least $1 million. The list included a $12.75 million home in Allenhurst, the most expensive residential transaction in New Jersey last year. The list includes 14 of Monmouth's 53 municipalities, and nine of Ocean's 33.
The list could have been longer, but Loch Arbour, where homes are routinely sell for more than $1 million, didn't have any sales recorded last year. And two other towns, Monmouth Beach and West Long Branch, fell just shy of that threshold.
The sharp jump in million-dollar towns is another indicator of a housing market that was turbo-charged when the pandemic hit in 2020. Buyers from New York, northern New Jersey and Pennsylvania, seeking more room, took advantage of record-low mortgage rates and remote work, and they moved to the Jersey Shore.
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Even though mortgage rates have more than doubled the past two years, demand has continued to sizzle. Real estate agents and experts say some buyers aren't affected by interest rates because they are paying with cash. Other buyers are reasoning that they can refinance if mortgage rates fall.
The result: More than a quarter of towns in the two counties now have average sales prices of at least $1 million.
"We do see up and down the Shore a higher propensity for people to pay cash, especially for more expensive homes, in the last year or two," said Joseph Lebel, president and chief operating officer of Toms River-based OceanFirst Bank. "On the lower end, affordability is the biggest challenge, largely because of the lack of inventory."
Ship Bottom is the latest Long Beach Island town to cross into rarefied territory. The town is the first that visitors see when they arrive from Route 72, earning it the nickname, "Gateway to the Island."
Its homes, largely built on smaller lots, have historically been more affordable than homes in other Long Beach Island towns. But the average sales price in Ship Bottom climbed from $610,120 in 2015 to $1.15 million last year, or 88%, thanks in part to a new generation of buyers that are snapping up homes to use as vacation retreats.
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Among them: New Yorkers who are finding Long Beach Island a more affordable option to the Hamptons, said Gavin Hodgson, an agent with Island Realty in Surf City. Hodgson said.
Hodgson, 32, grew up in Surf City. His family has been selling real estate on Long Beach Island for 100 years. During that time, dunes and marshes gave way to Cape Cod-style houses. Now, cottages are giving way to modern houses like one that Hodgson has listed: a 3-bedroom home with modern appliances and a rooftop deck for $1.5 million.
"What I see is that it's transforming into a more luxury market," Hodgson said.
Here is a look at the 23 Shore towns with the number of sales and average home sale prices of at least $1 million in 2023:
1. Allenhurst
Sales: 1
Average price: $12.8 million
2. Mantoloking
Sales: 7
Average price: $3.8 million
3. Sea Girt
Sales: 15
Average price: $3.5 million
4. Bay Head
Sales: 23
Average price: $2.4 million
5. Harvey Cedars
Sales: 33
Average price: $2.2 million
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6. Rumson
Sales: 24
Average price: $2.1 million
7. Spring Lake
Sales: 20
Average price: $2 million
8. Long Beach Township
Sales: 114
Average price: $1.9 million
9. Deal
Sales: 2
Average price: $1.8 million
10. Surf City
Sales: 26
Average price: $1.6 million
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11. Beach Haven
Sales: 53
Average price: $1.5 million
12. Sea Bright
Sales: 13
Average price: $1.4 million
13. Colts Neck
Sales: 32
Average price: $1.4 million
14. Lavallette
Sales: 43
Average price: $1.3 million
15. Barnegat Light
Sales: 14
Average price: $1.2 million
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16. Interlaken
Sales: 7
Average price: $1.2 million
17. Fair Haven
Sales: 29
Average price: $1.2 million
18. Ship Bottom
Sales: 37
Average price: $1.1 million
19. Brielle
Sales: 22
Average price: $1.1 million
20. Manasquan
Sales: 64
Average price: $1.1 million
21. Bradley Beach
Sales: 18
Average price: $1.1 million
22. Avon
Sales: 21
Average price: $1.1 million
23. Little Silver
Sales: 15
Average price: $1 million
Michael L. Diamond is a business reporter who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com.
This article originally appeared on Asbury Park Press: Monmouth, Ocean County home prices: Average price is $1M in 23 towns
