Will Home Prices in the Long Beach Island Real Estate Market Continue to Rise?
Click here to search all homes for sale in the Long Beach Island NJ real estate market
LBI Real Estate Prices are Likely to Increase 
LBI Real Estate Prices are Likely to Increase 
LBI Real Estate Prices are Likely to Increase
Long Beach Island Real Estate
The rapid increase of prices in the LBI real estate market has led many consumers to wonder if home prices fall or keep rising. The LBI real estate market has seen an appreciation of around 30%-40% in the last 12-18 months, which is a shocking increase. While COVID is unquestionably an underlying cause of this price increase, other factors have contributed to home prices on Long Beach Island rising as well. While, of course, nobody can say with 100% certainty, there are several compelling arguments to be made that support the widespread belief that home prices in the LBI real estate market will continue to rise, at least in the short term. Chief among these are:
- Historically low supply coupled with high demand
- A low-interest-rate environment
- A strong tailwind of interest in the LBI real estate market before COVID
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 Prices are Likely to Increase
When looking to buy or sell a home in the LBI real estate market, timing is everything. Everyone wants to make the best deal possible. Understanding the climate buyers are currently facing can shed some light on what kind of price movement we should see in the coming months. Above all else, there is a shockingly low supply of inventory, and buyer demand is still very high. So long as this prevails, there is only one way for prices to rise. There are currently only 2-3 months of supply of homes for sale on Long Beach Island, which is well below a balanced market. Until we see balance restored in the supply levels, prices will rise. Secondly, interest rates are still very well. While they have increased slightly in the last few months, the cost of money is very cheap. This helps to offset a higher purchase price and can make the prospect of a long-term investment on Long Beach Island more appealing. Lastly, all buyers and sellers should remember that the interest we see in the LBI real estate market is not only due to COVID. 2019 was a very strong year for home sales on Long Beach Island, and prices had steadily increased before the pandemic. While COVID accelerated the growth of prices, it was not the only factor leading to rising prices.
Will Home Prices in the Long Beach Island Real Estate Market Continue to Rise?
Trying to time the top or bottom of any market is impossible. All consumers can do is use the data in front of them to make an informed decision. For example, buying a home in the LBI real estate market right now might seem foolish given how quickly the price of a home has risen, but it could also prove to be a deal six months from now! In any market, discipline is key. Buyers and sellers should understand what determines the value for a home on Long Beach Island, and if the right opportunity presents itself, they should act! 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
You May Also Like:
LBI Real Estate Prices Reach New Highs
Summer 2022 Will See A Drop Off in Rentals on Long Beach Island