Key Issues Facing Long Beach Island Real Estate Affordability
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LBI Real Estate Affordability Factors 
LBI Real Estate Affordability Factors 
LBI Real Estate Affordability Factors
Long Beach Island Real Estate
There is no doubt that homes in the Long Beach Island real estate market are expensive. With an average sales price of around $2,000,000, homes are trading at roughly twice their pre-COVID values. Unfortunately, this has driven some buyers out of the market and left others questioning the chief concerns around the affordability of homes in the LBI real estate market. While there are many factors that comprise ownership costs on Long Beach Island, the two most impactful factors at present are home prices and mortgage rates.
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
LBI Real Estate Affordability Factors
One of most obvious factors to impact the affordability of a home on Long Beach Island is the mortgage rate. While home sales on LBI have never been that affected by a rise or a fall in mortgage rates, there is a direct correlation between the interest rate and affordability. While rates are higher, there has already been some indication of rates going down. Most lenders agree that over the long term, rates will again drop down once inflation comes under control. While it is doubtful we will see the low rates we did during COVID, a reduction of a point or two will be a significant saving for buyers in the LBI real estate market.
The second obvious and impactful factor is the price of the home itself. Prices on Long Beach Island have increased significantly, and this, sadly, makes Long Beach Island unattainable for some buyers. The question on most buyers and sellers minds is where prices are going. While nobody can answer that question, I look to the inventory of homes for guidance. There are only around 150 or so homes for sale in the LBI real estate market. Prior to COVID, there were around 500-600. Demand is still high, and the market generally balances weekly activity between new listings and pending sales. Until the inventory of homes increases, it is hard to see a path where home prices will fall by any meaningful measure.
Key Issues Facing Long Beach Island Real Estate Affordability
The good news for buyers on Long Beach Island is that the other factors comprising ownership costs, such as flood insurance, property taxes, etc., have remained very affordable. New flood insurance rating systems, for example, have dropped the annual rate for many homeowners. Buying a home in the LBI real estate market makes a lot of sense right now, if it makes sense to you. There are opportunities in every market and if you are looking for a home on Long Beach Island, it may take time to find it, but there is a good option out there! An understanding of Long Beach Island, knowing what determines value, and being ready to act is all that it takes to beat the market! For more information about buying, selling or investing in the Long Beach Island 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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