Two Challenges Facing the Long Beach Island NJ Real Estate Sales Market
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Long Beach Island Real Estate
The LBI real estate market has seen a number of changes over the past few years. The COVID market created unprecedented demand for homes on Long Beach Island, and this demand, coupled with low mortgage rates, helped significantly increase the average sales price. In some cases, home prices more than doubled in the last 2-3 years! Now, we are facing a new set of challenges in the Long Beach Island real estate sales market. These challenges are not a lack of demand but rather very low inventory and a reluctance to sell.
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
Two Factors Facing the LBI Real Estate Market
The single most impactful challenge in the LBI real estate market today is finding something to buy. While mortgage rates have increased and have driven away some buyers, it has been nowhere enough to depreciate the LBI real estate market. The single biggest issue is the lack of inventory. The Long Beach Island real estate sales market is trending at a near low, with around 100 single-family homes for sale at the time of my writing this article. In 2019, there were approximately 500 homes for sale, and the LBI real estate market was not at all slow with that inventory level. Buyers are demonstrating high levels of confidence in the market’s future and are ready, willing, and able to buy a home. More active listings are needed to meet this demand. Secondly, mortgage rates are indirectly hurting the LBI real estate market. As mentioned above, the rise in rates has excluded some buyers from the market, but not enough to impact prices or demand. Instead, higher rates are compelling current homeowners who have refinanced or recently purchased to retain their home instead of selling. This hurts the already low inventory levels and helps to accelerate that issue.
Two Challenges Facing the Long Beach Island NJ Real Estate Sales Market
It isn’t easy to see a path where inventory levels will rapidly increase. We are seeing a more or less balanced market with an equal number of new listings and pending sales each week. When we see a period of increased listing activity, it is shortly followed by a period of increased pending sales, returning levels to where they were! As a buyer in the LBI real estate market, the best way to engage the market is to fully understand the Long Beach Island area and what determines value in the LBI real estate market. That way, you can be ready to make a move when an opportunity arrives! For more information about buying, selling or investing in the Long Beach Island 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
More LBI Real Estate Information:
How to Start Buying a Home in the LBI Real Estate Market
Buyer Closing Costs in the Long Beach Island Real Estate Market
Ways to Use Equity in the LBI Real Estate Market
Why Condominiums Should Be Considered As Part Of Your LBI Real Estate Search