The Four Most Important Long Beach Island Real Estate Market Statistics
LBI Real Estate Market Statistics
Long Beach Island Real Estate
The LBI real estate market is an area of great investment. Home prices have generally held their value well and the demand for homes on Long Beach Island is high. During the worst days on the national recession, the LBI real estate market did not see a major inundation of short sales and foreclosures. Even Hurricane Sandy, which was a major disaster, failed to deter buyers on Long Beach Island and in fact, home prices have risen with the continued investment and redevelopment on Long Beach Island. Despite the strength of the real estate market on Long Beach Island, buyers must always be careful before investing in a home at the beach. One of the best ways to protect an investment in the LBI real estate market is by understanding LBI real estate market statistics.
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LBI Real Estate Market Statistics
Statistics are a funny thing. They can be “bent” to suit almost any need so it is important to understand what the most important LBI real estate market statistics are. The best indicators of current trends in the Long Beach Island real estate market are:
- The average price of a single family home
- The number of pending home sales
- The amount of time a home spends on the market
- The difference between listing price and selling price
The average price of a single family homes, over time, helps to identify trends in the LBI real estate market. Single family homes are by far the most volumes sale on Long Beach Island with roughly 20-30 transactions each month. This is a large enough sample pool to be reliable month over month. Average sales prices can be skewed by high or low sales as we saw after Hurricane Sandy. For several months after Hurricane Sandy, the average price of a single family home appeared much lower thanks to storm damaged homes being counted in the equation when, in fact, the average price of a non-damaged home was higher!
Pending sales show a good indicator of where the market is heading. Most real estate transactions take 30-60 days to close so reported closed sales are somewhat outdated, even on their closing day! A look at pending sales show CURRENT buyer activity and their willingness to invest in the Long Beach Island real estate market.
Lastly, the amount of time a home spends on the market and the difference between the listing and sales price show how anxious sellers are to move their homes. When we see elongated time on the market, it is usually a sign that sellers are overpriced and therefore significant adjustment is needed in the market pricing. The difference between the listing and sales price also shows how the market is reacting to a specific listing. On average, we see about a 6%-8% difference between the listing and sales price of a home on Long Beach Island. Higher percentages may indicate the market is overpriced.
LBI real estate market statistics are important for both buyers and sellers to understand. Above all else, pricing is the most significant factor in the LBI real estate market. Overpricing, or overpaying, for a home will end up being a poor financial decision. For more information about LBI real estate market statistics, feel free to send me a message and I will be happy to answer any questions you have.
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