Don’t Believe Everything You Read About the Long Beach Island Real Estate Market or the National Real Estate Market
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Be Careful of Dramatic LBI Real Estate Headlines 
Be Careful of Dramatic LBI Real Estate Headlines 
Be Careful of Dramatic LBI Real Estate Headlines
Long Beach Island Real Estate
As we come into 2022, things will likely change. COVID is (hopefully) coming under better and better control, and we are starting to see more of a return to a “normal” world. With this normalization, there are three trends that some may point to as the beginning of the end of the LBI real estate market. Sadly, we live in a world where bad news sells, so all buyers, sellers, and investors need to separate the truth from the dramatization. There are three critical areas of the LBI real estate market that we are starting to hear some point to as reasons for concern. They are:
- A rise in foreclosures
- Interest rates rising
- An end to remote working
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
Be Careful of Dramatic LBI Real Estate Headlines
As I have written many times on this website, there is no greater downward force on any real estate market than distressed sales. These include short sales, foreclosures, and bankruptcies. With an end to mortgage forbearance, some say we will see a wave of foreclosures and far more than we have seen in the past couple of years. While it is true that 2021 and 2022 have and will see more foreclosures than 2020, it is vital to understand the context. There were very few foreclosures in 2020, thanks to the forbearance program. Obviously, there will be a significant percentage increase in distressed sales in 2021 and 2022 when your comparative baseline is zero! That said, the LBI real estate market and the national real estate market are both at all-time highs. So, if someone does have to sell, it is likely that the vast majority will be able to do so quickly and for a profit, thereby negating an unsustainable wave of short sales and foreclosures.
The rise in interest rates has begun, and it will likely continue in the next several months and years. While it is true that some buyers will drop out of the market as the cost of borrowing money increases, it is doubtful, based on historical data, that it will crash a real estate market. The Long Beach Island real estate market has never been that sensitive to interest rates regardless of whether they rise or fall, and it is unlikely this will be any different. Looking back both locally and nationally, a rise in interest rates of less than 1.5% seems to have no impact on the appreciation of homes in the LBI real estate market.
Many folks are called back to the office as the world returns to normal and remote work has lessened. Some point to this as a reason for interest in the LBI real estate market to drop off. While we have no historical precedent for this to work from, home sales on Long Beach Island have been rising before COVID, and there is no tangible reason this will end due to workers being called back to the office. First and foremost, LBI is a summer resort community, and most of the buyers in the LBI real estate market enter into a transaction to take advantage of the summer season.
Don’t Believe Everything You Read About the Long Beach Island Real Estate Market or the National Real Estate Market
Of course, nobody knows what the future holds but the current data trends for home sales on Long Beach Island show no signs of slowing down. The often-cited reasons above for a drop in home prices on Long Beach Island also seem to hold little cause for concern. As is the case in any market, focus on what determines the value of a home and if buying a home in the LBI real estate market is the correct choice for you right now. If you have any questions about buying, selling or investing in 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
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