Improvement in the LBI Real Estate Market and the 08008 Zip Code
Homes Sales in the 08008 Zip CodeThe Long Beach Island NJ Real Estate Market
The LBI real estate market represents the sale and rental of single family homes, condos, multi family homes, commercial properties and timeshares. For those looking to invest in the LBI real estate market, it is important to understand the current trends of the market and ascertain true value of homes on Long Beach Island New Jersey by examining Homes Sales in the 08008 Zip Code . Long Beach Island or “LBI” has two zip codes. Most of LBI falls under 08008 (Holgate to Loveladies and High Bar Harbor) but Barnegat Light has its own zip code which is 08006. For this comparison, we will look strictly at the 08008 as this represents the majority of the activity in the LBI real estate market.
Homes Sales in the 08008 Zip Code
When looking at the value of the LBI real estate market, it is helpful to compare current real estate sales to sales over the past couple of years. We will be looking at the 08008 real estate market in 2011, 2012 and 2013 on Long Beach Island NJ and comparing the sale of single family homes during that time period. Currently, there are 433 single family homes for sale on Long Beach Island. To date, there have been 207 closings in 2013 and there are about 48 homes under contract at this time.
In 2011 there were 225 closings during the same time period and in 2012 there were 312 homes sold in the 08008 zip code on Long Beach Island. While the year to date sales are slower than both years, there are a few important points to consider:
- Long Beach Island sustained a direct hit from Hurricane Sandy in October 2012 which caused a major halt in market activity
- Many of the year end sales in 2012 in the 08008 zip code were home that went “under contract” before Hurricane Sandy
- With Sandy causing such damage to the Long Beach Island area, new market activity all but ceased in November, December and January thus slowing the future sales in 2013
When one examines the numbers in 2013, it is quite impressive that the LBI real estate market has held up as well as it had considering the unique and unprecedented challenges presented this year. Even with a major storm, Homes Sales in the 08008 Zip Code are keeping pace with 2011 and when one factors in the roughly 48 pending home sales, Homes Sales in the 08008 Zip Code are only slightly lower than 2012. It is also interesting to look at the average sales prices of the three years. In 2011 the average sales price of a single family home in the LBI real estate market was $965,572 and in 2012 it was $928,108. 2013 saw an average sales price of $885,124 which at first glance would point to a worsening real estate market. However, it must be remembered that Homes Sales in the 08008 Zip Code in 2013 also accounted for storm damaged homes which were not marketed as single family homes but rather as tear downs and vacant land. Therefore, to compare storm damaged homes in 2013 to a market of no storm damaged homes is not a true comparison. When storm damaged homes are taken out of the averages in 2013, the average sales price of a single family home jumps to $1,097,122!
Buying and Selling in the LBI Real Estate Market
There is a lot of interesting activity in the LBI real estate market . While the number of Homes Sales in the 08008 Zip Code is down when compared to 2011 and 2012, the average sales price is much higher. There is also less inventory on the market at this time which can create more competition when a home is listed correctly. It is not at all uncommon to see multiple offers on a property…provided it is listed at the correct price. For both buyers and sellers it is important to be aware of these and other similar trends in the LBI real estate market and the 08008 zip code so that pricing can be made intelligently and justifiably when engaging in a real estate transaction on Long Beach Island NJ. For more information about Homes Sales in the 08008 Zip Code please do not hesitate to contact me, Nathan Colmer, and I will be happy to help!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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