Long Beach Island Real Estate and the Coronavirus
Coronavirus and the LBI Real Estate Market 
Coronavirus and the LBI Real Estate Market 
Coronavirus and the LBI Real Estate Market
Long Beach Island Real Estate and the Coronavirus
The past few weeks and months have been a roller coaster throughout the world. Unfortunately, the Coronavirus has caused thousands of deaths and untold panic. The effect of this fear is undeniable as we have seen financial markets fall, most financial experts claiming that the bull market is over and talk that we are facing a recession. This upheaval begs the question of how these events will impact the real estate market on Long Beach Island. While nobody knows the answer to this question, there are some trends that we have already seen emerging and a few lessons that can be learned from the last financial downturn in 2008 and 2009.
- It is important to remember that the recent fall in financial markets has very little to do with the real estate market.
- The LBI real estate market is historically a stable market that does not see the massive dips experienced elsewhere
- With concerns about travel abroad or even on airplanes in general, the rental market may actually increase as a result of the Coronavirus
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
Coronavirus and the LBI Real Estate Market
The Long Beach Island real estate market seems to be holding steady in the early days of the Coronavirus. Over the last week, six homes went under contract, which is a “normal” number of deals in a given week. Depending on how the next few weeks and months play out, we may see some hesitation on the part of buyers to engage in a transaction, but that does not seem to be the case yet. As I mentioned above, the downturn we have seen in the financial markets is not closely related to real estate. This is a significant difference from the 2008 and 2009 market crash, which was fueled mainly by tight credit and defaulting real estate loans. While some fundamentals have weakened, there are still many positive signals being sent from the financial market as a whole. The Long Beach Island real estate market is historically speaking a “safer” and more defensive market. Much of this is thanks to the summer rental market. Buyers and investors can see stable and reliable returns in owning a rental home on Long Beach Island. This income helps to stave off short sales and other distressed sales, which are the biggest downward drivers of any real estate market. On the subject of summer rentals, there is early data to suggest the LBI real estate rental market may increase thanks to the Coronavirus. With restrictions being placed on foreign travel and a general fear of airports and airplanes in general, many may choose to stay more local. Long Beach Island is a short drive from many population centers, and the fear of travel may encourage more people to rent a home on LBI this summer.
The Future of the Long Beach Island Real Estate Market
Even in the best of times, there are no guarantees as to the future of the LBI real estate market. In this time of uncertainly, there is even more speculation. It is impossible in any market to predict the top or bottom. Instead, it is best to focus on the fundamentals and understand what determines value in the LBI real estate market. If you stick to the basics and remain disciplined in a purchase or sale, you will be just fine in the long run. 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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