Coronavirus and Home Values on Long Beach Island
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Why LBI Real Estate Home Values Will Be Ok 
Why LBI Real Estate Home Values Will Be Ok 
Why LBI Real Estate Home Values Will Be Ok
Long Beach Island Real Estate
With the recent crash in equities and the Great Recession of 2008 and 2009 still fresh in our memory, it is easy to understand why some feel home values will drop as well. We see some signs of less activity in the national real estate market and the local real estate market on Long Beach Island; however, some differences need to be addressed. There are several reasons why LBI real estate home values will be ok, and buyers may want to consider this an excellent time to be in the market (if the right opportunity presents itself).
- This specific stock market drop has little to do with the housing market
- There are some significant parallels to the fears in the market after 9/11
- Job loss could threaten the housing market, but the fundamentals of the homeownership are strong, and the government is taking proactive steps to help.
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 LBI Real Estate Home Values Will Be Ok
It is nothing short of terrifying to see a double-digit drop in the value of one’s investment portfolio. The turmoil in the stock market can lead to the conclusion that the housing market both nationally and on Long Beach Island will see a comparable drop in value similar to 2008. This is why we have to keep things in perspective. The 2008 crash was directly linked to the housing market and bad mortgages. The lending environment and the housing market on LBI could not be more different today than in the years leading up to 2008. Rather, the stock market drop is caused by an external enemy, the coronavirus. This is very similar to the national sentiment after 9/11. While I was in my senior year of high school when those terrible attacks took place, I remember many similarities between that time and today. People were concerned about travel, congregating in groups was being limited (for fear of another terrorist attack), spending slowed down, and fear reigned supreme. These trends sound similar to what we are experiencing today. Something else happened, home prices rose. The average price of a single-family home on Long Beach Island in 2000 was $416,000. In 2001 it was $483,000, in 2002 it was $591,000, and by 2003 it was $750,000! There was an INCREASE of roughly 22% from the price of a home in 2001 to the price of a home in 2002 in the LBI real estate market. The biggest fear for me personally is the job market. If people are out of work, they are not spending money. That could hurt the economy and the housing market. The good news is, homeowners are in a much better position than they were in 2008 (which should lessen the number of distressed sales we see), and the government is taking steps to help homeowners. These proactive steps could go a long way to keeping people in their homes and the housing market stable.
Long Beach Island Real Estate Market Updates
Of course, nobody knows what the future holds, and past events are helpful guides. They do not ensure the same thing will happen, and in all likelihood, something else will transpire. The good news is, housing is usually a stable investment, and looking back at the past, the housing market does well in a recession. The best thing to do is focus on what creates value in the LBI real estate market and act on an opportunity if one should present itself. If you have any questions about buying, selling or investing in the LBI 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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