The Number of Homes that Sold Compared to the Number of Homes that Expired on Long Beach Island
The LBI real estate market has been improving since Hurricane Sandy made landfall at the end of October 2012. Overall, we have been witnessing more homes sold at a higher than average sales price. While this news is certainly positive, it is important to examine the number of sold listings and expired listings in the LBI real estate market. During the initial listing period, there are a surprisingly high number of homes that fail to sell, and understanding these statistics goes a long way to understanding the Long Beach Island real estate market.
Sold and Expired Listings in the LBI Real Estate Market
A look at the number of sold versus expired listings between January 2015 and May 2015 shows some very interesting trends. The following data represents all property types sold during this time frame:
- January 2015 showed 46 closed transactions compared to 94 expired listings
- February 2015 showed 21 sold homes compared to 81 expired listings
- March 2015 showed 37 sold homes compared to 127 expired listings
- April 2015 showed 45 sold homes compared to 99 expired listings
- May 2015 sold 56 sold homes compared to 86 expired listings
An initial look at the data can cause alarm. It is quite evident that far more homes expire than sell every month in the LBI real estate market. The reason for these homes not selling can vary. However, the most common explanations are overpricing and poor marketing on the part of the listing agent. Above all else, a home must be priced correctly to sell. There are literally volumes of data supporting this statement. If a home is overpriced or a listing is “bought” (in other words, artificially priced high by an agent to secure the listing, only to recommend subsequent price reductions later on) , it simply will not sell, and most likely will expire. Additionally, if a property is not marketed correctly with pictures, online advertisements, and so forth there is a very good chance the general public will not find the home. Many of the listings that expired over these months were subsequently relisted, perhaps with a better price and perhaps with a better listing agent, and then saw the activity that they deserved. That said, the LBI real estate market is highly competitive, and it is important to understand the current market trends when buying or selling on Long Beach Island.
Long Beach Island Real Estate
There are a number of metrics we can use to gauge the overall health of the real estate market on Long Beach Island. LBI traditionally is a stable real estate market, thanks in part to summer rentals. Summer rentals help to provide income for homeowners, and lessen the need to sell which staves off distressed sales. Unfortunately, this can also create a situation where a seller is less motivated to sell their home and will keep the listing price high, while enjoying the benefit of rental income. This can often times create a situation where a number of listings will expire simply because the homeowner is not motivated. For more information about sold and expired listings in the LBI real estate market or for any questions about the Long Beach Island real estate market in general, contact me and I will be happy to answer right away!
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org