Is the Long Beach Island Real Estate Market Going to Crash, Appreciate or Depreciate?
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Long Beach Island Real Estate
There are a lot of questions in the financial world right now. Inflation is out of control, gas prices are through the roof, and interest rates are rising. This has left a lot of buyers and sellers wondering what the future holds for the Long Beach Island real estate market and the national real estate market in general. It seems clear that we are either in or are heading into a recession caused mainly by inflation. In this kind of environment, history has shown us that real estate tends to perform very well. Despite higher borrowing costs, there are many reasons to be optimistic about the future of the LBI real estate market. To understand the current state of the market and make some predictions on where the market is heading, we have to know if the market will appreciate, depreciate, and to what degree we will see a change.
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 Market Appreciation vs Depreciation
There is no doubt that the Long Beach Island real estate market has changed. The wild price appreciation we have seen over the last two years or so is likely to end. Inventory has started to climb but still has a very long way to go before entering a balanced market. While it seems clear that appreciation will slow, the odds of a significant price decline seem slim (but, of course, it is not impossible). All buyers, sellers and investors in the LBI real estate market should remember that we have seen the local market appreciate a great deal over the last 10 years or so. The rate of appreciation accelerated since 2020, but the market was already on the rise before then. As an example, between 2010 and 2020 (before the pandemic), Long Beach Island real estate values increased by about 18% on average! Now that we are moving into a slower market with higher inventory levels, there is no reason to assume the market will crash. Rather, it is likely that we will fall back to a slower, more sustainable rate of appreciation.
Is the Long Beach Island Real Estate Market Going to Crash, Appreciate or Depreciate?
Most industry experts agree that home prices in the Long Beach Island real estate market and elsewhere will likely see a slower rate of appreciation, but they will continue to appreciate. It is doubtful that we will see a meaningful crash, and if prices do drop, it will be limited in scope and range. At the end of the day, nobody knows where the top or bottom of a market is. The best advice I can give is to buy a house if it makes sense to you and to stick to the fundamentals. If you understand what determines value in the LBI real estate market, you will be just fine! 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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