Slowdown At The Jersey Shore

From the Star Ledger:

Beached sales
BY SAM ALI

Long Beach Island, or L.B.I., as it's popularly called, is an 18-mile-long thread of land, at some points no wider than single street block. It has no boardwalk, just gently sloping white sand dunes flecked with beach grass and old bungalows, Cape Cods and multi-million dollar mansions

Back in 1994, shortly after Rick Stevens, a real estate broker, opened his sales office here, he sold a 3-bedroom, 2-bath raised ranch for $165,000. That same inland home sold again for $549,000 in May 2004 and just last month, it went back on the market, with an asking price of $649,000.

But so far, there have been no takers.

Further north, in the picturesque seaside town of Spring Lake, Tom McLoughlin, 62, and his wife Vicki, 60, have been trying to sell their beautiful 1893 Queen Anne-style home for the past 10 months. Last August, the 7-bedroom house, which sits on a half-acre, was listed at $5.3 million. It's now priced at $4.9 million, but buyers are nowhere to be found.
...
"People are aggressively reducing prices to move their properties," he said. "The mindset has changed. The market has changed because of the supply becoming greater."