by Hugh V. Merkle

2025 Showed Increased Sales Even With Low Sale Listing Inventory! With High Buyer Demand If you are considering selling NOW may be the time to SELL!

In 2025, 7 Mile Beach, as reported by the Cape May County MLS, 243 properties SOLD compared to 202 in 2024. Again, there were a number of homes, especially new construction, that SOLD “off market” before they got officially listed because of the tremendous buyer demand. Even with the off-market homes that sold, the number is much higher than it was in 2024. The rise in sales is a result of a slight increase in listings, however not nearly enough to meet buyer demand. Also, families who do not have a vacation home are realizing the benefits of a special get-a-way and there are more families setting a goal of buying in the near future and Stone Harbor and Avalon home values over the years have held their value during downturns and have appreciated at a higher rate than most vacation home destinations over the long run. The 10 year review charts on pages 5 & 6 of the February Hugh's News are evidence of the strength of Seven Mile Beach real estate.

Looking at the make-up of the Avalon – Stone Harbor real estate market, on an annual basis a higher percentage of single-family homes sell on the island compared to condominiums. In 2025, 53.17% of all units SOLD in Avalon were single family homes and 74.78% of the dollar volume, whereas 42% were condominium sales with 23.2% of the dollar volume. In Stone Harbor 69.12% SOLD were single family homes with 84% of the dollar volume, and 35.5% were condominium sales with only 13.75% of the dollar volume.

On page 5, you will find detailed statistics of all properties SOLD in 2025 along with a detailed breakdown of the ten year sale market trends on pages 5 & 6. Buyer demand continues to be very strong. One major reason demand is still strong is that real estate is a hedge against inflation. There are times when the vacation home market has slowed down. Over the past 40+ years there have been a few times when values have adjusted downward, these times do not last long, and values go back up. New construction prices have continued to lead the way with appreciation. For anyone interested in NEW CONSTRUCTION, there are a number of high end new single-family homes being built that will not come on the market until they are close to being completed. If you are interested in NEW CONSTRUCTION homes and you cannot find one that currently works for you, call me to discuss what you are looking for and I can go over with you what is available off market. Call my cell 609-602-0300.

Avalon and Stone Harbor continue to maintain much higher property values than the majority of vacation home communities throughout New Jersey and along the Atlantic Coast state beach communities. The main reasons for this are the strict zoning codes which contribute to much less population density than the majority of beach communities as well as the high quality of new construction.

RENTAL LISTINGS: For families interested in renting for 2026 there is excellent availability currently however there will be strong demand from renters as we move from winter into spring. For owners who are renting their property, if and when you consider selling and purchasing another vacation home/investment property, there may be the possibility of doing an IRS 1031 Tax-Deferred Exchange in the future and deferring the capital gains tax. See 1031 Also, for sellers who rent their property and do not want to do a 1031 Exchange and purchase another property, there are DELAWARE STATUTORY TRUST vehicles to invest in to defer the capital gains and state income tax, which may be worth looking into. If you are interested in selling a rental property give me a call at 609-602-0300 to discuss the options of deferring capital gains & state income taxes.

After you review the statistical information and articles in this issue of HUGH’S NEWS, if you have any questions and/or would like to discuss buying a vacation home or if you own and would like to discuss the value of your Stone Harbor or Avalon property for sale or rent give Hugh a call @ 609-602-0300 or email Hugh: Hugh@HughMerkle.com.

Just 116 days to Memorial Day Weekend! ‘SEA’S YOUR OPPORTUNITY! Stone Harbor and Avalon property owners - if you are considering selling in 2026, NOW is the time to list your property FOR SALE as we move through winter toward spring. Call Hugh today @ 609-602-0300.