Fact or Fiction in the Long Beach Island Real Estate Market

Fact or Fiction in the Long Beach Island Real Estate Market

Misconceptions in the LBI NJ Real Estate Market

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

There are lots of rumors about the Long Beach Island real estate market and where prices are heading. Nobody knows for sure where the market is heading, and all we can do is look at the current data and the past trends in the market. For those looking to enter into a transaction in the Long Beach Island real estate market, it is helpful to understand what is currently taking place and make the best predictions possibleā€¦based on the facts! For any buyer or seller, separating fact from fiction can be a job unto itself.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Fact or Fiction in the Long Beach Island Real Estate Market

I hear three prevailing rumors brought up quite often in the Long Beach Island real estate market. They are:

  • Home prices are going to crash
  • There are no homes for sale
  • Mortgage rates are going to get cheaper, so it is better to wait

As I mentioned above, nobody knows the future, but we can look at the current and past market trends to make a prediction. First, it is doubtful that prices are going to crash. There are several reasons for this. In a pre-COVID LBI real estate market, there were around 500-600 homes for sale. Currently, there are about 200. Until the number of homes increases dramatically, prices are likely to rise. In addition, interest rates are still very low, and homeowners are enjoying a significant equity position. Therefore, it is unlikely we will see a surge of distressed sales, which are one of the most important drivers of price drops. Lastly, the LBI rental market is stronger than ever, and homeowners are seeing outstanding returns, further insulating them against any kind of distressed sale. While it is true that there are fewer homes for sale than “usual,” there are far more homes than were on the market a few months ago. With 200 homes for sale, there are certainly options available in almost all price ranges. Lastly, nearly every economist agrees that interest rates will only go up from here. That will make the cost of owning a home more extensive. It is doubtful that a rise in interest rates will lower the sales price of a home in the Long Beach Island real estate market, as our market has never been that sensitive to rates when they rise or fall.

Misconceptions in the LBI NJ Real Estate Market

Overall, the LBI real estate market is robust and still full of opportunities. The best way to beat the market is to understand what determines the value of a home in the LBI real estate market or build a new home. If it makes sense for you to be in this market, you can be better prepared to buy or sell a home in the Long Beach Island, NJ, real estate market by separating fact from fiction. If you have any questions about buyingselling 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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