Why We Won't See Foreclosures in the LBI Real Estate Market

Distressed Sales in the 08008 Zip Code on Long Beach Island, New Jersey

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Why We Won't See Foreclosures in the LBI Real Estate Market — Why We Won’t See Foreclosures in the LBI Real Estate Market

Long Beach Island Real Estate

There is no doubt that the LBI real estate market, and the real estate market around the country, have changed. The near-reckless buying patterns have given way to a more responsible and informed consumer, and this is a good and healthy thing. Historically, the LBI real estate market has been a stable one, with few distressed sales even back in 2008 and 2009. There are a few reasons for this, but the most prominent are the robust summer rental market, buyers being well-informed and making smart purchases, and the nature of the second home market itself. More recently, the low interest rates we have seen have enabled a class of homeowners who have locked in favorable mortgages that don’t make sense to walk away from or pay off. Taken as a whole, it is doubtful that we will see many short sales, foreclosures, or distressed sales in general in the LBI real estate market.

By : Nathan Colmer | 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

Why We Won’t See Foreclosures in the LBI Real Estate Market

The Long Beach Island real estate market and the national real estate market today are in a very different place than they were leading up to 2008. Today’s lending standards are far higher than they were in the early 2000s, and banks are far more scrutinized to ensure they are making responsible loans. Over the past 2 years, most buyers locked in very low rates, and buyers will enjoy this fixed rate for the life of the loan. This is the total opposite of the last cycle, where buyers were taking on higher-priced, adjustable-rate loans with no assurance of what their ownership costs would be in the future. The stability of the LBI real estate market is compounded by an appreciating market that has put a significant equity gain in most homeowners’ pockets (even if they recently bought a home on Long Beach Island), which further lowers the chance of a distressed sale on Long Beach Island. Finally, the low supply of inventory is keeping interest in the market. Each week we are seeing a balance between new listings and pending sales, and this shows us that most buyers and homeowners are confident in the current and future Long Beach Island real estate market. Together, this presents a compelling argument as to why we will not see distressed sales, short sales, or foreclosures in the Long Beach Island real estate market.

Distressed Sales in the 08008 Zip Code on Long Beach Island, New Jersey

Overall, the LBI real estate market is in a very good place right now, and there is no reason to suspect there will be a crash or a waiver of distressed sales. If you are a buyer waiting for a significant price drop and a wave of foreclosures to enter the market, including other options in your search would be advisable. There are opportunities in this market, as there are in any market, and the best thing to do is learn! By understanding what creates value in the LBI real estate market, the current trends, and the types of investments on LBI, you will be in a better place to buy as opposed to waiting for a distressed sale on Long Beach Island. 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

www.BuyLBI.com

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