LBI Real Estate Market Depreciation

Downturns in the Long Beach Island Real Estate Market

LBI Real Estate Market Depreciation
LBI Real Estate Market Depreciation

Long Beach Island Real Estate

The LBI real estate market has helped strong appeal for over 200 years. Long Beach Island is unique among many shore towns, and close proximity to North Jersey, New York, and Pennsylvania has helped to build up a substantial summer resort business. Even with the strong attributes of Long Beach Island, the market is not immune to downturns, and like any investment, they are to be expected to some degree. It is important to remember, that provided a home is purchased for the right price and the right location, the long-term value will improve and investment in the LBI real estate market will be worthwhile. Understanding the LBI real estate market depreciation is a critical component when considering buying a home on Long Beach Island.

Click here to search all homes for sale in the Long Beach Island NJ real estate market

LBI Real Estate Market Depreciation

There are three important factors that help to limit the depreciation of the LBI real estate market. They are:

  • Summer Rentals
  • Limited Supply of Inventory
  • Low Numbers of Distressed Sales

Summer rentals comprise the backbone of the LBI economy. Summer rentals also help to limit the depreciation in the LBI real estate market as they provide immediate source of income. Even in tough economic times, for example a job loss for unexpected expense, the ability to rent a home over the busy summer months will in most cases cover the expenses and potentially generate a profit.

Long Beach Island is not getting any larger and this creates a limited supply of homes for sale. Long Beach Island has always been a popular resort destination, and it is the dream of many people to own a home at the beach. The simple law of supply and demand dictates that provided interest in vacation home remains, there will always be some level of security in the LBI real estate market. Looking back to the slower times in the LBI real estate market, during 2008, 2009, and 2010, there was still interest in owning a home at the beach and is helped to create a lower depreciation in seen elsewhere nationwide.

There is perhaps no greater negative force on the value of a real estate market than distressed sales. Short sales, foreclosures, Bank owned real estate can have an immediate and negative influence on the value of been area’s real estate market. Luckily, Long Beach Island has never seen a high number of distressed sales, in great part thanks to summer rentals. During the downturn of the national economy, when the news was filled with short sales and foreclosures, LBI did not witness an influential number of distressed sales. Summer rentals allow a homeowner, even when the homeowner is in financial distress, the ability to rent a home out and cover their expenses. This can stave off the need to sell the home at a loss which helps to keep property values higher and investment in the LBI real estate market more secure.

Long Beach Island Real Estate Investment

It is important to remember that the LBI real estate market is in fact a market. Like any market or investment, is subject to high points and low points. Provided a buyer purchases a home in the proper location and pays attention to market trends, their investment should for the most part be secure. Even if financial times become tough, renting a home out for immediate income can allow an investor the ability to wait for the market to rise before selling their asset. For more information about the LBI real estate market depreciation or buying a home on Long Beach Island, CONTACT MEĀ and I will respond right away.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market