Long Beach Island Real Estate and the National Economy
The LBI NJ real estate market, like all real estate markets, is heavily tied to the national economy. With many buyers in the LBI real estate market coming from the financial sector, generally speaking the stronger the stock market is the stronger the real estate market on Long Beach Island will be. Therefore, understanding the current trends we see in the national economy and how the relate to the Long Beach Island real estate market are essential for anyone looking to make an investment.
Economic Update and the LBI Real Estate Market
It has already been a busy year with major storms, wildfires that turned into mudslides, a new tax plan and the in-fighting in Washington seemingly getting worse. And that is just the first month of the year. The LBI real estate market can certainly relate to these events having dealt with Hurricane Sandy. We end the first month and start the second month with another busy week, at least on the economic front. This week we have the first meeting of the year for the Federal Reserve Board and also the first reading on jobs which contains 2018 data.
Thus far this year it seems that the economy continues to move forward, even without the anticipated effects of the tax plan. Of course, the anticipation itself has fueled much optimism which can be seen in record stock market closes. The performance of the economy is all about optimism. Since the Fed just raised their benchmark rates in mid-December, most analysts are not expecting another increase so soon. However, even if they do not raise short-term rates at this meeting, they will be discussing how much and how quickly they will be raising rates this year. There are still many questions about the impact the tax bill will have on the LBI market but overall it seems the impact will be minimal.
How much and how fast will depend upon the strength of the economy. And major evidence of this strength will be released a few days after they meet in the form of the January employment report. December’s job gains were a bit under forecast, and thus we will be looking at not only January’s numbers, but revisions to the previous months’ data. A really strong report could move the Fed to raise rates at their next meeting in March. Even if they do not, one thing is certain — unless something happens to derail the economy, their only move is up this year.
Buying and Selling in the Long Beach Island Real Estate Market
The Long Beach Island real estate market is all about timing. Being able to predict, based on past trends, the direction of the market can greatly impact the investment you make in the LBI real estate market. Understanding things like the current inventory levels in the market, the overall economic picture and the past trends in both the national and the local LBI real estate market are basic tools required to advise in the buying and selling of Long Beach Island real estate. For more information about this economic update and the LBI real estate market feel free to contact me.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | email@example.com
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