Long Beach Island Real Estate Buyer Conditions Improve
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LBI Real Estate Buyer Conditions Improve 
LBI Real Estate Buyer Conditions Improve 
LBI Real Estate Buyer Conditions Improve
Long Beach Island Real Estate
Things have changed in the Long Beach Island real estate sales market, and while some have hurt buyers, others have helped significantly. Over the last several months, the cost of a mortgage has increased, and prices have more or less held firm making the cost of owning a home on LBI more expensive. While the cost has increased, LBI real estate buyer conditions have improved thanks to three major factors. They are:
–Inventory has improved on Long Beach Island
-Sellers are willing to negotiate in price and terms
-More building opportunities have opened up
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Buyer Conditions Improve
Inventory is one of the most significant trends to track in the LBI real estate market. Since the beginning of the so-called COVID market, inventory on Long Beach Island has plummeted, and buyers have had difficulty finding a home. Prior to COVID, there were usually around 500 or so single-family homes for sale on Long Beach Island. At present, there are about 145. While inventory levels are still very low, they have roughly doubled from their lowest point (about 75 homes). This gives buyers more to pick from and greatly increases their chances of finding a home.
Sellers are definitely more willing to negotiate on a home than they were several months ago. This is best highlighted in the difference between the listing price and the sales price of a home in the LBI real estate market. Several months ago, the average home sold for over full price, usually around 102-103% of the listing price on average. Now, the average home sells for around 98% of the listing price. While this is still highly competitive, it shows a willingness on the part of a seller to enter into a transaction. What is harder to track but anecdotally has improved for buyers are the terms of a deal. Sellers are now willing to entertain a home inspection, mortgage contingency, appraisal contingency, etc. This is perhaps the best news for buyers. Several months ago, many buyers in the LBI real estate market would enter into a transaction with little to no protection and little to no knowledge of the home they were trying to purchase.
Lastly, as interest rates have risen and fear has taken hold of some buyers, there are more opportunities to buy a knockdown and build a new home on Long Beach Island. Building a new home is your best investment in the LBI real estate market. I handle this type of transaction quite often, and we typically see around a 20% equity position in the finished product. When the market was more competitive, many buyers were scooping up these homes, whereas now, an end user stands a good chance of finding a worthwhile opportunity. The benefits of building are only increased when one considers that the cost to build a new home has dropped a little, thereby expanding the potential for a substantial equity position in the LBI real estate market.
Long Beach Island Real Estate Buyer Conditions Improve
Things have changed in the LBI real estate market but all signs point to the market balancing out, not crashing. Inventory is low, demand is high, and buyer conditions have improved in many ways in the LBI real estate market. Each week there have been a roughly equal number of new listings and pending sales, which shows buyer confidence is still strong. There are opportunities in the Long Beach Island real estate market. You just have to understand the market and wait for the right one to come along! For more information about buying, selling or investing in the Long Beach Island real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
More LBI Real Estate Information:
Inventory is Improving for Buyers in the LBI Real Estate Market
LBI Real Estate New Listings and Sales November 2022
LBI Real Estate Affordability Factors
$2,000,000-$4,000,000 LBI Real Estate Market Single Family Home Sales October 2022