Three Key Housing Market Forces That Could Influence Home Values on Long Beach Island
Three Factors That Could Impact The Value of the LBI NJ Real Estate MarketNathan 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
The Long Beach Island Real Estate Market
The real estate market on LBI has been very active. Even with the major damage caused by Hurricane Sandy, buyers have been willing, and very eager, to invest in the LBI NJ real estate market. With the majority of the damage caused by Hurricane Sandy having been repaired, the future of Long Beach Island and of the Long Beach Island real estate market seems bright. Summer rentals seem to be strong and home prices appear to be on the rise but there are Three Factors That Could Impact The Value of the LBI NJ Real Estate Market.
Three Factors That Could Impact The Value of the LBI NJ Real Estate Market
While there are many factors that can influence the local and national housing markets, there are three factors in particular that may relate to the LBI real estate market. They are:
- Interest rates on Long Beach Island
- The so called “shadow inventory” of bank owned homes
- New construction and the LBI real estate market
Interest rates care clearly related to both the Long Beach Island real estate market and the national real estate market. Right now, interest rates remain low however as the economy grows more stable, there is greater likelihood that interest rates will increase. As the cost of money goes up, so too does the cost of ownership for those looking to buy a house on LBI with a mortgage. Depending on where interest rates move, this could negatively or positively impact the LBI NJ real estate market. If rates start to climb, some buyers will move forward with their purchase so as to lock in a lower rate and a lower long term cost of ownership. On the other hand, if rates climb too high, it will drive some buyers out of the market.
Since 2008 there has been much talk of a “Shadow Inventory” of bank owned homes that will flood the national real estate market as prices begin to rise and subsequently drive prices down. While it is impossible to say if this will or will not happen nationally, on Long Beach Island there is little risk of this occurring. The LBI real estate market is well insulated again bank foreclosures since there exists the ability to rent a house for the summer months and cover the majority of the costs of ownership. This is a strong positive aspect of the LBI real estate market and one that has, and most likely will continue to, attracted buyers. A stable market is a far better investment than a market that is subject to wild ups and downs like was witnessed in areas such as Las Vegas and parts of Florida.
New construction tends to raise the value of real estate in a given area. Thanks to Hurricane Sandy, there has been a major investment in rebuilding on Long Beach Island with almost every street seeing new homes being built. This substantial investment will increase the value of the entire LBI real estate market and influence all homes for sale on LBI. With the millions of dollars being poured into not only new construction but also methods to safeguard LBI again future storms, many buyers are seeing the area as an excellent investment.
The Future of the LBI NJ Real Estate Market
While it is impossible to say what the future of the LBI real estate market will be, signs are pointing to a very positive future. With the national economy performing better and with major investment in the LBI area, there has been substantial interest in the area. The LBI real estate market will of course always be subject to the ups and downs of any market but for now, the area seems to be on the upswing! For more information about Three Factors That Could Impact The Value of the LBI NJ Real Estate Market feel free to contact me, Nathan Colmer, and I will be happy to discuss the market with you!
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
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