Why the LBI Real Estate Market Won’t Crash

Why the LBI Real Estate Market Won't Crash

Stability in the Long Beach Island Real Estate Market

Long Beach Island Real Estate

It is hard today to stay calm in the face of updates, 10% swings in the stock market and talk of a national or global recession. The Great Recession of 2008-2009 or so is still relatively fresh in everyone’s minds and it is easy to understand why people are afraid. In these tumultuous times it is important to stay calm and look at the data. There are some significant differences between this time and 2008 that should help keep the national and local LBI real estate market stable.

  • Real estate in general is far more stable than it was leading up to 2008. Back then, mortgages were easy to obtain whereas today, lending is far more strict.
  • Inventory levels are very low
  • Equity levels are very high

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 the LBI Real Estate Market Won’t Crash

In the years leading up to the financial crisis of 2008 it was hard to NOT get approved for a mortgage. In today’s lending environment, the opposite is true. With tighter lending standards, as the overall economy falls there should be far fewer distressed sales on the market and if you have been reading my Blogs, you will know that distressed sales are the biggest downward force on a real estate market. While LBI has VERY few distressed sales in any market, fewer of them nationally will help keep the market here on Long Beach Island more stable. The number of homes for sale on Long Beach Island is at one of the lowest levels seen in the last 10 years. This absence of inventory (and the simple law of supply and demand) will help to keep the market stable and prices higher. As we enter into a recession and a slowing economy, some price adjustments are to be expected but with more buyers in the market than there are good quality listings, we will still expect to see multiple offers on some homes. We have just come off the longest bull run in market history. People in general made a lot of money over the past several years in the stock market and the economy in general. While this drop has been significant, even if prices drop most homeowners on Long Beach Island should still have a positive equity position. This is especially true if a buyer followed my advice on how to beat the market and built a new home. They will be in a strong position even if prices fall and still have several hundred thousand dollars of equity.

Long Beach Island Real Estate Market Transactions

Of course nobody knows where the markets are heading. If the Coronavirus stays longer than planned things could get worse before they get better. That said, there are still strong signs of stability in the financial markets (along with plenty of doubt). Personally I think we are in a recession. I also think it will be short lived, a couple of quarters, and w ill not be that severe. The key getting ahead in the LBI real estate market is to stay disciplined, focus on the fundamentals and understand what creates value on Long Beach Island. If you have any questions about buyingselling 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

You May Also Like:

Are LBI Real Estate Rental Properties Profitable

Lot Size in the LBI Real Estate Market

What Type of Loans Are Buyers Using in the Long Beach Island Real Estate Market

How Will The Coronavirus Impact the LBI Real Estate Market

Why LBI Real Estate Is Local