Four Factors Affecting LBI Real Estate Home Affordability

Home Affordability in the Long Beach Island NJ Real Estate Market

Long Beach Island Real Estate

The affordability of a home in the LBI real estate market is a concern right now, with many potential homebuyers feeling discouraged by rising prices and rising mortgage rates. However, it’s important to remember that home affordability is determined by more than just mortgage rates. There are four key factors to consider in the real estate market on Long Beach Island. Mortgage rates, home prices, the number of homes for sale on LBI, and wages all play a role in the affordability of a home. Let’s take a closer look at each of these factors to understand how they affect home affordability today in the Long Beach Island real estate market.

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

Four Factors Affecting LBI Real Estate Home Affordability

When looking to buy a home in the LBI real estate market, it is helpful to understand the details of the major factors that impact the affordability of a home on Long Beach Island.

Mortgage Rates
While mortgage rates in the LBI real estate market have increased since the pandemic, they have remained relatively stable between 5% and 7% on average. However, even a small change in mortgage rates can impact ownership costs on Long Beach Island. To be fair, the LBI real estate market has never been that sensitive to mortgage rates, the cost of borrowing money has a clear impact on the affordability of a home on Long Beach Island.

Home Prices on Long Beach Island
Home prices on LBI have appreciated rapidly in recent years due to the surge in buyer demand caused by record-low mortgage rates during the COVID. However, the current higher mortgage rates have slowed down the rate of price appreciation. There are no significant or apparent “red flags” that would indicate prices are going to drop, and with low inventory and high demand, prices are likely to remain stable or increase in the LBI real estate market.

Wages
Wages and unemployment are more of a national concern than they are in the LBI real estate market, but to some degree, the Long Beach Island real estate market will follow national trends. The good news is that wages are on the rise, which is a positive factor for affordability and the housing market. As wages increase, it reduces the percentage of your income required to pay your monthly mortgage, making homes more affordable.

Inventory
The biggest challange facing buyers in the LBI real estate market today is the lack of homes for sale. Inventory is very low, roughly 25% of the pre-COVID levels. With low supply and high demand, prices are likely to remain stable or increase in the LBI real estate market. This will make homes less affordable as sellers can still command a good price with fewer options to pick from on Long Beach Island.

Home Affordability in the Long Beach Island NJ Real Estate Market

If you are considering buying a home in the LBI real estate market, it’s crucial to understand the key factors impacting affordability today. To make an informed decision about buying a home in the LBI real estate market, it’s essential to understand how these factors work together to impact affordability. The best way to be prepared to buy a home on Long Beach Island is to stay up to date on the latest trends and make an informed decision about your home purchase. By staying informed and working with an experienced real estate professional, you can make a smart decision that fits your needs and budget. For more information about Long Beach Island or about 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