Will More Homes Be For Sale in the LBI Real Estate Market

Factors that Could Lead to More Homes Being Listed for Sale on Long Beach Island

Long Beach Island Real Estate

Inventory is low on LBI, there is no doubt of that. Buyer demand in the Long Beach Island real estate market is still strong, and there are simply not enough homes to go around. Even in the face of higher interest rates, home prices on LBI have risen over the past year, and inventory has fallen. This begs the question, will more homes be for sale in the LBI real estate market? There are a few ways we may see the number increase, but it is hard to see a path where inventory will return to a pre-COVID market level in the near future.

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

Will More Homes Be For Sale in the LBI Real Estate Market

Historically, two times in the year, we see a meaningful increase in homes coming on the Long Beach Island real estate market. They are in the fall and right after the first of the year (usually late January to February). While these trends have continued over the past few years, more is needed to meet demand. Over time, this will likely start to correct itself slowly, but we have to remember that there have been thousands of sales in the LBI real estate market over the past few years and that demand absorbed the majority of sellers who wanted to sell. While homes come on the market all the time for a variety of reasons, it is a fair assumption that the bulk of these would-be sellers have already sold! These listings likely have low interest rates, the so-called “golden handcuffs” that make moving into a different home or investment challenging. As I see it, two factors could help increase the number of homes for sale in the LBI real estate market. They are summer rentals and windmills. It seems likely that with travel restrictions no longer being the case, some will choose to vacation elsewhere away from LBI and the Jersey Shore. Lower demand will likely result in slightly lower prices. To be fair, this lower demand will probably be more impactful in a market like Beach Haven West as opposed to Long Beach Island, which has proven time and time again to be very resilient. That said, there will almost certainly be a body of homeowners who were either ill-advised or overpromised a rate of rental return and, therefore, will choose to sell. The second and perhaps more impactful factor is the windmills forecasted to be built off the coast. While their construction has several legal challenges, the general thinking right now is that they will be built. Assuming they are built, there will certainly be some who choose to sell either from fear or from a change of view. Currently, I place these two factors as the greatest chance to see the number of homes for sale on LBI improve.

Factors that Could Lead to More Homes Being Listed for Sale on Long Beach Island

While there are always ways for the number of homes for sale on LBI to increase, and we are still determining the future, we have a long ladder to climb before we are back to a pre-COVID inventory level. It is doubtful that either of these factors, either alone or together, will be enough to change the climate on LBI manfully. Demand is still very strong, confidence in the future of the LBI real estate market is high, and even in this market, buying opportunities make a lot of sense. We see a roughly balanced market week by week of new listings and pending sales, so as it stands, we will likely be in this market for some time. For more information about Long Beach Island or about 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