Long Beach Island Real Estate and Recession Pricing
Three Reasons Why The LBI Real Estate Market Will Not Slowdown 
Three Reasons Why The LBI Real Estate Market Will Not Slowdown 
Three Reasons Why The LBI Real Estate Market Will Not Slowdown
Long Beach Island Real Estate
It is fair to say that we are in uncharted territory and I personally believe we are in a recession. What is less clear is how bad things will get and specifically, how will coronavirus and a recession impact the Long Beach Island real estate market. This is something all buyers and sellers want to know and many will try to guess. The truth is, nobody knows but there are lessons we can learn from the history of past down markets and recessions that will give us some guidance.
- Historically real estate markets tend to improve during a recession
- The real estate market today is very different from 2008
- Price is usually driven at least in part by supply and demand. Demand is high and supply is low in the LBI real estate market which can lead to stability.
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
Three Reasons Why The LBI Real Estate Market Will Not Slowdown
While it may seem counterintuitive, past recessions have mostly lead to increases in prices rather than decreases. That could well be the case on Long Beach Island this time around. Using data from Corelogic, in the last five recessions, only two of them saw a price decrease. One of those decreases was less than 2%. Most people associate with recessions with drops in home prices thanks to the severity of the last market drop (which nationally was about 20%). That is not the case if the past is any guide. This is especially encouraging when one considers the vast differences between this market and that of 2008. In the last recession, real estate was the direct cause of the market’s crash. This time around, homeowners are more secure, stricter lending standards have created less opportunity for distressed sales and inventory levels are far lower. There is a supply and demand problem in most markets and that is certainly the case on Long Beach Island. The number of homes for sales is at one of the lowest levels seen in the last decade. This kind of disparity usually leads to homes prices holding steady.
Buying in the Long Beach Island Real Estate Market
As I mentioned above, nobody knows where the market is heading. There are counterarguments to be made to everything I have laid out, for example the number of Americans who have a risk of being unemployed is very high right now at least on a temporary basis. There certainly could be a change in the price structure of the real estate market on Long Beach Island however if the past is a guide, the change will be minimal. The best way to beat the market is to focus on the fundamentals and look for homes that have real value in the market. There are always opportunities to be had, you just have to have patience and know where to look. 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
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