September 2013-March 2014 Trends in the LBI NJ Real Estate Market
Home sales on Long Beach Island seem to be showing strong signs of improvement. With a steady number of homes selling each month coupled with an increasing average sales price, investment on Long Beach Island is on the rise. It is important for both buyers and sellers to understand the current Trends in the Long Beach Island Real Estate Market as they relate to home prices and future appreciation.
Current Trends in the Long Beach Island Real Estate Market
Between September 1st 2013 and March 1st 2014, the Long Beach Island New Jersey real estate market saw some interesting activity. Sales transactions were broken down as follow:
- 722 new listings came up for sale in the LBI NJ real estate market
- There were a total of 412 price reductions during this period
- 525 homes were either withdrawn from the market or expired
- 256 homes went “under contract” on Long Beach Island
- 231 closings took place on Long Beach Island
Looking at the numbers can tell us some important information. With 722 new listings coming on the market, there is clearly a lot of inventory for buyers to choose from. It is also clear that buyers are taking advantage of this inventory with almost 500 homes either closing or going “under contract” during this time period. The fact that there were 412 price reductions, almost one price reduction for every two listings on the market, tells us that some homeowners are being too aggressive when pricing their home for sale. While it is clear that the market has been improving, home buyers are still very much aware of the current market value of a home and will not over pay for a property. A home must be listed in accordance with the market and with similar homes in order to sell!
Overall, the inventory of homes is more or less in balance with an almost equal number of homes entering and leaving the market. This is a very positive sign for the future of the real estate market on Long Beach Island. Of course, activity is not spread equally among the different price ranges and locations on LBI. For example, the price of a storm damaged home is much higher than it was in 2012 as fewer of these homes are presently on the market for sale. Likewise, there has been a lot of activity for homes priced around the $500,000-$600,000 price point. Inventory is low in this price range and there are many buyers looking for a home!
Pricing a Home in the Long Beach Island Real Estate Market
Both buyers and sellers should be aware of how to determine a price in the LBI real estate market. While the Trends in the Long Beach Island Real Estate Market point to increasing prices, buyers and sellers must understand how these trends relate to a specific property. There are some excellent opportunities in the market but there are also a number of homes that are overpriced (as is evidenced by the massive amount of price reductions). Therefore, a home must be matched to comparable active and sold listings to determine its true value! For more information about pricing a home on LBI or the current Trends in the Long Beach Island Real Estate Market feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org