A Look at What is Selling in the Long Beach Island Real Estate Market
A Profile of Vacation and Investment Homes in the LBI Real Estate MarketLong Beach Island Real Estate
Before investing in a second home or vacation property in the LBI real estate market, it is important to understand just what is selling and to whom. Nationwide, more than half of the purchases made in the vacation second home market are by individuals and families under the age of 45 with another roughly 25% being between 45 and 60. While it is difficult to track the age of all buyers in the LBI real estate market, it would appear that these trends prevail on Long Beach Island as well. Given that demographic, it is easy to understand why single-family homes are the most common second home purchase both nationwide and on Long Beach Island. Most of the buyers in the LBI real estate market our families and the appeal of a private residence is high. Looking at a profile of vacation or investment homes in the LBI real estate market shows a few additional interesting trends.
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A Profile of Vacation and Investment Homes in the LBI Real Estate Market
A quick look at the types of homes selling in the LBI real estate market can give us some insight into long-term property values on Long Beach Island. For example:
- The majority second homes and investment properties are single-family homes
- Duplexes make up a high number of investment sales for the excellent rental potential and the ability to build side-by-side townhomes
- Vacation and second homes tend to be smaller than a primary residence
- Short sales and foreclosures make up a small percentage of the LBI real estate market
Single-family homes of the most common property type on Long Beach Island. Therefore, it is not surprising that this is the most common property type sold in the LBI real estate market. What is interesting to note, is that single-family homes come in a wide variety of price ranges and styles, all of which are appealing to a buyer. There are large elegant estates on the water as well as functional raised ranch style homes, large contemporary new construction and traditional Cape Cod beach homes. All of these homes offer something different to a buyer in the LBI real estate market.
Duplexes can make for excellent investment. While single-family homes hold excellent rental potential, duplexes offer the advantage of being able to rent one floor and use the other for personal enjoyment. This creates a hybrid of investment in vacation home commonly seen on Long Beach Island. Duplexes offer the advantage of potentially allowing construction of new side-by-side townhomes which can have high value in the LBI real estate market.
Short sales, and bank owned real estate and foreclosures make up a very small percentage of home sales in the LBI real estate market. The excellent summer rental market provides a steady and reliable income stream that can help to stave off distressed sales. This actually helps to keep property values on Long Beach Island higher and make for a safer real estate investment.
What is Selling in the LBI Real Estate Market
It is important to understand what trends prevail in the LBI real estate market. Buying a home on Long Beach Island is a major financial investment, and is important to ensure that investment is secure. Every property will have pros and cons, however the most stable property type will most likely be a single-family home. This option allows for greater flexibility and rental potential and holds mass appeal to both the local and national second home real estate market. For more insight into A Profile of Vacation and Investment Homes in the LBI Real Estate Market or the LBI real estate market in general, CONTACT ME and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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