Why Home Prices in the Long Beach Island NJ Real Estate Market Have Remained Stable
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Why Are LBI Real Estate Home Prices Not Crashing 
Why Are LBI Real Estate Home Prices Not Crashing 
Why Are LBI Real Estate Home Prices Not Crashing
Long Beach Island Real Estate
The last several years have seen dramatic activity in the LBI and national real estate markets. Home prices surged over the past 2 years until they peaked in late Spring/Summer of 2022. Mortgage rates have risen, calling into question the affordability and sustainability of the Long Beach Island real estate market. Now, we are faced with a market that seems to be holding steady in spite of these changes. While prices seem to be rising, it is at a much slower pace, but demand still remains very strong. This begs the question, why are LBI real estate home prices not crashing?
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
Why Are LBI Real Estate Home Prices Not Crashing
Historically the LBI real estate market has been a very stable market. This is nothing new. Even in 2008 and 2009, when the national real estate market was at its worst, home prices on Long Beach Island did not drop as much as many other markets. Historically and currently, much of this has to do with the strong summer rental market. Summer rental income can easily cover most or all of the ownership costs for a home, and, in the event of financial trouble, summer rental income can avoid the need for a distressed sale. Specifically to this market, the single most impactful element that is helping to keep home prices in the LBI real estate market stable is inventory levels. Before COVID, there were roughly 500-600 homes for sale at any given time. Today, there are only around 100-150 for sale. Demand for homes remains very strong, and every week we see a roughly balanced number of new listings and pending sales. So long as this balance is maintained, home prices should stay stable or continue to rise. Of course, the counterargument is that mortgage rates have risen, which could lessen demand. Still, the reality is that the LBI real estate market has never been that sensitive to interest rates in either direction. While higher lending costs have driven some buyers out of the market, it is not enough to impact the demand for a home in the Long Beach Island real estate market.
Why Home Prices in the Long Beach Island NJ Real Estate Market Have Remained Stable
While some hopeful home buyers in the LBI real estate market are waiting for a pricing crash, it is doubtful that we will see one. The low inventory levels, high demand for homes, and strong summer rental income will likely keep home prices stable. Of course, nobody can predict the future, so the best way to safeguard an investment in the LBI real estate market is to understand the market and what creates value. By focusing on the important elements of the market, you can be assured that you are making a wise investment. 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
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