Tracking Short Sales and Distressed Home Sales in the Long Beach Island NJ Real Estate Market
Tracking Short Sales in the LBI 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
Short Sales and Distressed Homes in the LBI NJ Real Estate Market
A short sale is the unfortunate situation when a home must be sold for less money than is currently owed on the property. This occurs when the present owner pays too much for the house and the market or the value of the property has decreased to a point where the outstanding mortgage balance is greater than the amount of money that would be netted after closing costs are deducted from the sales transaction. When this occurs, the bank or lending institution must agree to take a loss on the property by forgiving a portion of the unpaid balance or seeking some other form of compensation from the seller. Short sales and distressed home sales saw a lot of media attention during the financial crisis of 2008 as many homeowners were forced to undertake the process. While the LBI real estate market was somewhat protected from short sales (since the ability to rent the house will often cover most or all of the carrying costs) short sales do occur in the LBI NJ real estate market and it is therefore important to understand how they play into the Long Beach Island New Jersey real estate market as a whole. The best way to do this is by Tracking Short Sales in the LBI Real Estate Market.
Tracking Short Sales in the LBI Real Estate Market
To look at short sales and bank owned properties in the LBI real estate market we must examine the past few years in comparison to 2013.
- 2010 say a total of 296 closed single family home transactions in the LBI real estate market with only 7 being short sales or distressed sales
- 2011 saw a total of 300 single family homes sold on LBI with 15 being short sales or distressed sales
- 2012 (which has been the most active year in the LBI real estate market since 2006) saw 373 sold single family homes with only 4 being short sales
2013 is not yet complete (as I am writing this article at the end of October 2013) however to date, there have been 242 closed single family homes in the LBI real estate market with only 5 being short sales or otherwise distressed homes. In addition there are 52 single family homes under contract in the Long Beach Island real estate market, non of which are short sales or bank owned properties.
Short Sales and the LBI Real Estate Market
The information above is very telling. Where many markets have an abundance of short sales and distressed homes, they make up only a very small portion of the LBI real estate market. It is for this reason that I do not encourage my clients to look ONLY at distressed homes and they are not always the best deal! Depending on the individual situation, they can prove to be an excellent purchase-but only of the conditions are right! Regardless, it is always encouraging to see such a small portion of the LBI real estate market falling into the distressed category as it helps to keep the Long Beach Island real estate market strong and a safer investment. For more information about Tracking Short Sales in the LBI Real Estate Market please do not hesitate to contact me, Nathan Colmer and I will be happy to help!
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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