Buyers Will Find Fewer Distressed Properties on Long Beach Island

Short Sales, Foreclosures, Bank Owned Real Estate, and Storm Damaged Homes on Long Beach Island

Long Beach Island Real Estate

Buyers in the LBI real estate market should expect to see fewer distressed homes for sale. As home values continue to improve on Long Beach Island, this lessens the chances for distressed sales. While short sales, foreclosures, and bank owned real estate are not particularly common in the LBI real estate market, they do come on the market from time to time. With the improvements we have seen in 2014, the expectation is that the number of these distressed sales will lessen. Far more common, and also classified under a distressed sale, are storm damaged homes. These homes, which sustained flooding in Hurricane Sandy, are sold for land value and are typically viewed as a good opportunity. While many of these homes have cleared the market, there are still storm damaged homes for sale. However as 2015 progresses, the expectation is the number of options will diminish. Therefore, buyers will find fewer distressed properties on Long Beach Island.

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Why Buyers Will Find Fewer Distressed Properties on Long Beach Island

There are three main reasons buyers should expect to see fewer distressed homes for sale in the LBI real estate market. They are:

As the economy improves, short sales and foreclosures will become less common nationwide
And the number of storm damaged homes become fewer, and new construction takes their place, land values on Long Beach Island increase which makes the storm damaged homes more attractive
Summer rentals are an all time high which can make a distressed homeowner able to keep their property and generate positive cash flow

From the height of the financial crisis in 2008, we have seen fewer and fewer distressed sales in the local real estate market. This trend is certainly true on Long Beach Island which never experience a high number of short sales or foreclosures. At the overall economy improves, the expectation is these numbers will become even lower.

Storm damaged homes, which many would classify as a distressed sale, have all but cleared the market. While there are still storm damaged homes for sale, the fact that these properties are sold for land value make some very appealing. With speculative real estate investments becoming more and more commonplace, and yielding higher and higher cash returns, the investment opportunity presented by the storm damaged home is more and more appealing. As the number of these homes diminishes further, the law of supply and demand dictates their value will increase.

Summer rentals, which have always been a positive element for the LBI real estate market, are an all time high. With interest in Long Beach Island increasing, and other short towns still not having recovered from Hurricane Sandy, the supplier rental inventory is quickly filling up. This allows homeowners to rent additional weeks, or raise their rental rates, both of which lessen the likelihood of a home owner being forced to sell.

Opportunities for Short Sales, Foreclosures, and Other Distressed Sales on Long Beach Island

There are still many opportunities for buyers in the LBI real estate market. While supplies distressed sales on Long Beach Island has never been high, under the right circumstances they can prove to be a fantastic investment. In addition, the overall health of the LBI real estate market helps to ensure that a property, purchased for the right price, will be a strong investment. This includes buying a teardown and building a new construction, buying a property for rental income, and other Long Beach Island real estate investments. For more information about the LBI real estate market or why Buyers Will Find Fewer Distressed Properties 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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