Long Beach Island Real Estate and the Coronavirus
How Will The Coronavirus Impact the LBI Real Estate Market 
How Will The Coronavirus Impact the LBI Real Estate Market 
How Will The Coronavirus Impact the LBI Real Estate Market
Long Beach Island Real Estate
One thing is clear, we are in uncharted waters. While of course the safety of all those who live and visit LBI is of the utmost importance, just about everyone wants to know how will the Coronavirus impact the LBI real estate market. Since the Coronavirus appeared, we have seen turmoil throughout the world and the financial market and nobody know how long or how far the impact will go. That said, there are some local trends we can use to draw conclusions on the impact of the Coronavirus in the near and long term.
- The LBI real estate market is historically a stable market
- The rental market may actually see an increase as travel abroad is restricted
- Inventory levels are at some of the lowest points seen in the last 10 years (source Jersey Shore MLS)
- We may see inventory levels increase or decrease depending on a few scenarios
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
How Will The Coronavirus Impact the LBI Real Estate Market
Looking back in time, we see the LBI real estate market has remained pretty stable. Of course, it is subject to the ups and downs of the greater economy, but the drops witnessed on Long Beach Island tend to be much lower than the national averages. This will most likely be the case this time around. The data tells us that if there is a drop in home prices, it will be minor. Much of this has to do with the LBI summer rental market. Summer rentals make up a large part of the Long Beach Island economy. Summer rentals provide a good source of income and help to stabilize the LBI sale market in a down economy. Perhaps the most compelling reason to not fear a recession or Coronavirus fueled pullback has to do with the number of homes for sale. Inventory levels are low. When showing homes, it can be a challenge to find 2-3 good options at any given time, and bidding wars are not uncommon. Even if a percentage of buyers move to the sidelines, there appears to be enough interest in the Long Beach Island real estate market to keep sales moving. Lastly, we may see inventory levels fall further as a result of Coronavirus. The reasons for this are many but can include a fear of sellers having buyers in their house (and as a result not listing the home for sale). Of course, if buyers do sideline themselves, inventory levels could start to increase, but there is still a supply and demand problem for home shoppers. To me, the biggest fear is jobs. If the Coronavirus continues and companies layoff employees, it will undoubtedly lead to a deeper recession, and that could cause a more significant drop in home prices. That said, if we use the 2008-2009 figures as a guide, we are probably looking at something around 5%-7% as a drop (but of course that is only a best guess).
Buying and Selling in the Long Beach Island Real Estate Market
Of course nobodys knows what the future holds but this much is true. There is opportunity in ANY and EVERY market. If the right home can be found that meets the needs of a buyer and has real value, then long term the investment will be sound. 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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