A Recession Does Not Mean Home Prices in the Long Beach Island NJ Real Estate Market Will Fall
Long Beach Island Real Estate
As the economy struggles with the impact of higher interest rates, regional bank failures, and general economic uncertainty, some buyers are concerned about the state of the LBI real estate market. Specifically, many are worried that a recession will lead to a drop in home prices in the Long Beach Island (LBI) area. However, it’s important to understand that a recession does not necessarily mean home prices will decline. In fact, many factors can impact the real estate market, and historically the LBI real estate market has faired very well in past recessions.
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
A Recession Does Not Mean the LBI Real Estate Market Will Drop
One important thing to keep in mind is that the LBI real estate market is unique. This area is known for its beautiful beaches, stunning homes, and vibrant community. It is also supported by the vibrant LBI summer rental market. This rental market is the lifeblood of the Long Beach Island economy, and even during recessions, it has seen strong and steady numbers. These factors make it a highly desirable place to invest, and historically demand for homes in the area remains strong even during difficult economic times. Another factor to consider is the limited supply of homes in the LBI area. The number of homes for sale on Long Beach Island and the 08008 zip code is less than a quarter of what it was before COVID. In order for prices to drop, even in a recession, two things would have to happen. First, the number of homes would have to increase dramatically, and second, buyer demand would have to dry up. Since many homeowners and recent buyers in the LBI real estate market either do not have a mortgage or are locked in a very low interest rate, it is difficult to see a path where inventory will rapidly increase. This means that even during a recession, there may not be enough supply to meet the demand for homes in the area. This can help to keep prices stable even in the face of economic uncertainty.
A Recession Does Not Mean Home Prices in the Long Beach Island NJ Real Estate Market Will Fall
Of course, other factors can impact the LBI real estate market as well. Interest rates, changes in the job market, and other economic factors can all play a role. However, it’s important to remember that a recession on its own is not a guarantee of declining home prices on Long Beach Island. It is essential to stay informed about the state of the economy and how it might impact the real estate market on Long Beach Island. It’s equally important to remember that many other factors are also at play. In an inflationary recession, like the one we are likely to enter if we enter one at all, hard assets like real estate tend to perform very well. By looking at the numbers, understanding what determines value on Long Beach Island, and following sales updates, one can invest in the Long Beach Island real estate market with a reasonable degree of confidence, even if we do enter a recession. For more information about Long Beach Island or about the LBI 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:
Three Reasons Why The LBI Real Estate Market Will Not Slowdown
LBI Real Estate New Home Construction Update May 2023
Four Reasons to Use an LBI Real Estate Agent
Advantages of Investing in a Home in the LBI NJ Real Estate Market