2010-2014 Average Listing Price vs. Selling Price Ratio in the LBI NJ Real Estate Market
Average List Price/Sale Price Ratio on Long Beach IslandLong Beach Island Real Estate
2014 ended one of the most positive years in the LBI real estate market. The overall number of homes sold and the average sales price were both substantially higher. The reasons for this improvement vary, however great deal of it has to do with Hurricane Sandy. Hurricane Sandy prompted a major overhaul of Long Beach Island which resulted in a massive wave of new construction, home renovation, infrastructure upgrades, and a beach replenishment project to safeguard against future storms. While the average sales price and the number of homes sold have both increased, an often overlooked statistic is the difference between the listing price and sales price of a home in the LBI real estate market. Average List Price/Sale Price Ratio on Long Beach Island is yet another metric we can use to assess the health of the Long Beach Island area.
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Average List Price/Sale Price Ratio on Long Beach Island
The average sales price versus listing price for the past five years is as follows:
- 2010:93.3%
- 2011:93.9%
- 2012:93.9%
- 2013: 94.4%
- 2014:94.4%
Over the past five years, the variation between the listing price and sales price of a home has narrowed by approximately 1%. There are two possible conclusions we can draw from this data. The first is, sellers have become more realistic about their listing prices. This is a distinct possibility, since 2010 and 2011 were a low point in the LBI real estate market. Since then, home prices have improved each year which has helped sellers to get closer to the target price. A second possible conclusion is that buyers are simply willing to pay more for a home in the LBI real estate market. This is highly likely as we have seen the number of homes sold increase. This shows a higher level of activity, and more competition for homes. A well priced home will typically receive multiple offers and result in a sales price closer to the original listing price.
How to Use the Average List Price/Sale Price Ratio on Long Beach Island When Buying a Home
Knowing the average list price versus sales price ratio can help in a number of ways. When buying a home on Long Beach Island, it is far better to make a realistic offer rather than a low ball number. Understanding the difference between the listing price and the sales price can help to determine what a realistic offer should be. A realistic offer will make a buyer seem more educated and seem more serious about the home. This will often result in a lower sales price paid by the buyer. For more information about the LBI real estate market or Average List Price/Sale Price Ratio on Long Beach Island contact me 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
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