Does It Make Sense to Buy a Home on Long Beach Island Right Now
Long Beach Island Real Estate
Any buyer in the Long Beach Island real estate market wants to avoid overpaying for a home. Timing the LBI real estate market is impossible, but there are trends we can look to for guidance. Ultimately, deciding if this is the right time to buy a home is a personal decision. There are always buying opportunities in any market and reasons for and against entering into a real estate transaction. If, as a buyer, you look at the current and past market trends and line them up with your personal situation, you can decide if this is the right time to buy or if it is better to wait.
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
Timing the LBI Real Estate Market-March 2024
When looking at national real estate forecasts for well-known economists and professionals like Fannie Mae, the consensus is that prices will rise nationwide over the next five years. The prediction is that prices will increase about 3%-4% each year. While this is a lower rate of appreciation than we have seen in the past few years, it is clear that the data points to prices rising.
The LBI real estate mirrors this prediction. Demand for a home on Long Beach Island is still very high, and inventory is incredibly low. Prior to COVID, there were about 500-600 homes for sale in the LBI real estate market. Today, there are around 100 unencumbered listings in the MLS. With demand still remaining strong and each week seeing a roughly equal number of new listings and pending sales, there is no reason to assume prices will drop in the LBI real estate market. Additionally, forecasts predict that interest rates will drop in the next several months, and if this occurs, there is a good argument to make that prices will rise even more.
Timing is key to making a purchase in the LBI real estate market, and while nobody can predict the future, it seems likely that the market value will increase in the foreseeable future. If buying a home makes sense on a personal level right now, you can feel comfortable knowing that all the data points to higher prices in the future. To put that in real terms, the average price of a single-family home is about $1,500,000 right now in the LBI real estate market. If we take the lower end of the estimated market appreciation of just 3%, that same home will be worth about $1,750,000 at the end of the next five years! Of course, that is just an estimate, but it highlights how waiting for a “better” market could end up costing a great deal of money.
Does It Make Sense to Buy a Home on Long Beach Island Right Now
Buying a home is a highly personal choice, and my intention in this posting is not to create a “you need to buy a home in the LBI real estate market now” mentality. Rather, any buyer in the LBI real estate market needs to understand what the current and past trends are showing us, and that there is little reason to assume that prices will drop in the near future. If it makes sense to buy a home on Long Beach Island now, then you can do so knowing that the investment will most likely be sound! For more information about Long Beach Island or about 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