Vacant Land Sales in the Long Beach Island Real Estate Market Between September 2014 and March 2015
The LBI real estate market offers many investment opportunities, however the option with the greatest return on investment with lowest amount of risk is building a new home. Building a new home in the Long Beach Island real estate market can offer instant equity ranging from 20% to 30% above the total investment. To make this investment, either vacant land or a teardown home must be purchased, the lot cleared, and a new home built in its place. Tracking LBI real estate vacant land sales offers an important gauge of the current real estate market as well as guidance when looking to invest in this kind of real estate transaction.
LBI Real Estate Vacant Land Sales
Between the months of September 2014 and March 2015, the LBI real estate market showed some strong activity with vacant land sales.
- During this time period, 18 lots were sold as building projects
- The average price of a vacant lot was $579,267
- On average, vacant land sold for a 5.28% of its listing price and spent 305 days on the market
This information offers some interesting perspective and buyer habits in the LBI real estate market. First of all, the total investment will be much higher than the $579,000 average sales price, as this does not take into account the cost of building with building costs ranging from $175 to $200 per square foot, it is clear that the total investment comes much closer to the average sales price on Long Beach Island (roughly $1,100,000). The average time vacant land spends on the market is considerably longer than the average on Long Beach Island, however this is to be expected. It is much more difficult to purchase a vacant land or a storm damaged home as in most cases traditional financing methods will not apply. This limits the pool of potential buyers and therefore it is to be expected that these homes will take longer to sell. It is also important to point out that not all of these 18 homes were vacant land. Some were storm damaged homes that were beyond the point of habitability, and therefore marketed and sold as building sites.
New Construction in the Long Beach Island Real Estate Market
Between the months of September 2014 and March 2015 over $10 million worth of vacant land traded in the LBI real estate market. This shows that investors are willing to take advantage of the unique opportunities that present themselves on Long Beach Island. New construction is important gauge for the overall health of the LBI real estate market in the local economy, as the investor’s willingness to engage in LBI real estate transactions can be very telling in the overall level of buyer confidence. Building a new home truly is an outstanding opportunity to be the market by margins that would be otherwise unattainable. For more information about the Long Beach Island real estate market or LBI real estate vacant land sales, contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org