Will the LBI Real Estate Market See Foreclosures

Long Beach Island NJ Real Estate Market Foreclosures

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Will the LBI Real Estate Market See Foreclosures

Long Beach Island Real Estate

With mortgage rates on the rise, many buyers and sellers are wondering if we will see a wave of foreclosures in the LBI real estate market. The short answer is it is unlikely. Overall the LBI real estate market, and the national real estate market, are both very strong. Most homeowners are in a good financial position, and there is nothing in the real estate market causing a slowdown. Rather, higher interest rates have cooled a white-hot real estate market and started to balance out home sales on Long Beach Island. This is a very different environment from 2008-2009, when lending practices were far riskier. We should also keep in mind that even in 2008-2009, when the real estate market was at its worst, there were only a handful of distressed sales in the LBI real estate market. This is good for anyone looking to buy in the LBI real estate market as it once again shows the stability of investment on Long Beach Island.

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 the LBI Real Estate Market See Foreclosures

The Long Beach Island real estate market has proven to be resilient time and time again. This cycle should be no different. There are several reasons the LBI real estate market will not see a wave of foreclosures.

Nationally, the mortgage foreclosure rate and the number of delinquencies have been falling and there are very few, if any, on Long Beach Island
Most homeowners have a substantial amount of equity in their homes and a low fixed-rate mortgage
There are many ways to escape foreclosure on Long Beach Island, chief among these is renting your home

Nationally speaking, only about 0.4% of loans in the nation are facing foreclosure. That is a very low rate and well below the 1% that many banks consider to be acceptable. Searching distressed sales in the LBI real estate market produces few if any, results and most of those are errors in reporting. Overall, the vast majority of homeowners on Long Beach Island and elsewhere have a good equity position and a low-interest rate. This is very different from 2008-2009 when most homeowners were heavily leveraged and had adjustable-rate loans. Most important of all for Long Beach Island real estate, the rental market can sustain most ownership costs and avoid the need to fire-sell a house. Finances are seldom the reason for someone selling a home in the LBI real estate market, and even if someone finds themselves on hard time, renting the house can usually be enough to sustain the mortgage.

Long Beach Island NJ Real Estate Market Foreclosures

I highly doubt we will see any meaningful drop in prices or any influx of distressed sales in the LBI real estate market. Simply put, the LBI real estate market is just too strong. There are no “real” factors causing a slowdown in the market. There is not a glut of inventory, buyers still want to own a home at the beach, and most homeowners can afford to keep their house. Therefore, it is highly unlikely that we will see an increase in distressed sales and foreclosures in the LBI real estate market. 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