Sales of Vacation Homes Are Increasing Across the Nation and on Long Beach Island
The LBI Real Estate Market and Long Beach Island New Jersey
The Long Beach Island economy and the LBI NJ real estate market are based on summer tourism. With the majority of home on Long Beach Island being either second homes or vacation properties, LBI is what is known as a “second home market”. A rise in the sale of vacation homes, both on Long Beach Island and across the country, often signify a stronger economy as home buyers feel they have more discretionary income. Therefore, to see Vacation Home Sales on the Rise is a good good sign for the future of the LBI NJ real estate market.
Vacation Home Sales on the Rise on Long Beach Island
According to NAR (the National Association of Realtors), Vacation Home Sales are on the Rise. According to the 2014 NAR survey:
- Vacation homes saw an increase of 29.7% from about 553,000 vacation homes sold in 2012 to 717,000 in 2013
- Investment properties saw a decline in activity by about 8.5% to about 1.10 million units
- While these numbers are much higher, they are still below the level of activity seen in 2006 (generally considered to be the peak of the real estate market)
We have seen a similar increase in vacation home sales on Long Beach Island. While a full year comparison of 2012 to 2013 is almost useless thanks to Hurricane Sandy, we can compare sales from September, October, November and December of 2013 since we saw a return to normal business during this time period. September, October, November and December of 2012 saw a total of 143 closings take place in the LBI real estate market whereas September, October, November and December of 2013 saw a total of 166 sales! This is an increase of almost 18%! While it is lower than the national average, it is a very impressive number given the unique challenges presented by Hurricane Sandy.
Buying a Vacation or Investment Home in the Long Beach Island New Jersey Real Estate Market
While there are still some lingering questions and concerns about flood insurance and the possibility of future storms, the LBI real estate market has been very active. There are currently more than 100 homes under contract in the LBI real estate market which shows that Vacation Home Sales are on the Rise! Like any investment, buying a vacation or investment home in the Long Beach Island New Jersey real estate market requires a careful understanding of the area and the current market trends. For more information about the LBI real estate market, please do not hesitate 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