LBI Real Estate Market COVID Home Price Increase

LBI Real Estate Market COVID Home Price Increase

How Much Have Long Beach Island Real Estate Home Prices Increased Since Coronavirus?

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate and COVID-19

Everyone is well aware of the impacts COVID-19 has had on our lives. It seems that nearly every aspect of life has been impacted by a coronavirus, and the Long Beach Island real estate market is no exception. Anyone who has followed home prices on my website or the LBI real estate market, in general, is aware of the higher prices, lower inventory, and increased demand for real estate in our area. It is much more difficult to understand how much have Long Beach Island real estate home prices increased since coronavirus, and that is what we will be discussing in today’s article.

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

LBI Real Estate Market COVID Home Price Increase

It is very difficult to assign a market increase that encompasses the entirety of the LBI real estate market. There are a number of factors that make such an assignment somewhat inaccurate. Things like location, home style, view, etc. can all have a dramatic impact on home prices. Therefore, a specific assessment is needed to truly understand how COVID-19 has impacted a property. That said, there are some generalizations we can make to help get a sense of where the market is currently trading and why. To do this, we will be looking at single-family homes only, since these are the most prevalent type of transaction on Long Beach Island.

  • In 2019 the average price of a single-family home was $1,150,000
  • In 2020 the average price of a single-family home was $1,320,000.

This is an increase of about 15% or so but it doesn’t really reflect the impact COVID has had on the market. We have to remember that the quarter of 2020 did not have much of an increase from coronavirus and it wasn’t until March that things began to shut down in earnest. LBI was all but closed for a few months which obviously made selling homes hard to do. Therefore, a full year comparison is hard to do since these months will drag down the statistics. A better way to look at the impact COVID has had on the market is to look at things from June to the end of the year. By this point, LBI was back up and running so we could see the full impact of the increased market demand. The average price of a single-family home between June 2020 and January 2020 was $1,650,000. When compared to 2019’s average sale price, this is a roughly 30% increase in the average price.  It is hard to make a blanket statement as to how much the LBI real estate market has increased, but it is safe to say that the market has come up between 15% and 30% with a more realistic increase being in the 25%-30% range. 

How Much Have Long Beach Island Real Estate Home Prices Increased Since Coronavirus?

As I mentioned above, each property type and property location will have seen and will continue to see a different rate of appreciation due to coronavirus. The best way to answer how COVID has impacted home prices is to look at a true “class by class” comparison. For example, new homes on the ocean block in 2019 compared to no homes on the ocean block in 2020. We will be exploring these comparisons in future articles but for now, it seems clear that the market has seen an increase of between 15% and 25% or so on average. If you have any questions about buyingselling 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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