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January 2020 Sales in the LBI, NJ Real Estate Market
New year new market! 2020 is an election year which can always make for some interesting market activity. Let's see how the year got started.. Sales were as follows:
Single Family Homes
38 Sold
Average Price: $1,212,724
Average Percentage of Listing Price: 95.42%
Average Days on Market: 162
Condominiums
5 Sold
Price: $480,950
Percentage of Listing Price: 96.08%
Days on Market: 234
The LBI real estate market got off to a good start. Compared to January 2019 there were 4 more single family homes sold and 1 less condominium. The average price of a single family home was also about $50,000 higher in 2020 as compared to 2019 but it is worth mentioning that the average price of a condo fell slightly. Overall it seems that January 2020 beat January 2019 and growth is always a positive sign to see. There are currently about 80-90 homes under contract in the Long Beach Island real estate market which is also higher than 2019. The year is off to a good start!
February 2020 Sales in the LBI, NJ Real Estate Market
February 2020 saw an explosion of sales when compared to February 2019. Sales were as follows:
Single Family Homes
26 Sold
Average Price: $1,131,038
Average Percentage of Listing Price: 96.04%
Average Days on Market: 100
Condominiums
4 Sold
Price: $526,625
Percentage of Listing Price: 95.4%
Days on Market: 124
The market was much higher in February 2020 when compared to February 2019. A year over year study shows 22 homes sold in 2019 and 30 sold in 2020. The average price of a single family home was about the same as well which shows a level of stability in the market. Now that we are in to March and the economic world is suffering from the Coronavirus we will have to see if there is any spillover into the LBI real estate market. At present there are over 100 pending sales which is a good sign for home sales and LBI real estate transactions moving forward.
March 2020 Sales in the LBI, NJ Real Estate Market
Coronavirus! This unfortunate and tragic pandemic has dominated the news and the LBI real estate market is no exception. The impact of the virus is not yet apparent but it certainly has had an influence on buyer and seller behavior. Sales in March were as follows:
Single Family Homes
34 Sold
Average Price: $969,842
Average Percentage of Listing Price: 95.81%
Average Days on Market: 92
Condominiums
6 Sold
Price: $629,167
Percentage of Listing Price: 96.19%
Days on Market: 189
Sales saw a sharp drop off in March 2020 as compared to March 2019. Last year showed 43 single family homes sold and 9 condos sold for a total of 52 transactions. In 2020 we saw 40 in the same time period. Year over year sales are a good gauge of the market as they adjust for seasonal patterns (something very important in a summer resort community). I track daily and weekly sales on my blog and we have seen a notable increase in the number home homes coming back on the market after being under contract. This is likely due in part to Coronavirus. Currently there are about 85 pending sales on Long Beach Island. This time last year there were about 110. Despite the doom and gloom of this update, I am optimistic about the future of the LBI real estate market. The fundamentals of the market are still very strong, inventory is low and in spite of a slowdown, interest remains VERY high. Once Coronavirus is under control, the general opinion is the global economy and the LBI real estate market will see a bounce back. This too shall pass. In the meantime, stay safe!!!
April 2020 Sales in the LBI, NJ Real Estate Market
As the world continues to understand the full impact of COVID-19 or coronavirus, we are starting to see some normalcy return to Long Beach Island and the LBI real estate market. Plans are in place to open LBI for Summer 2020 and the market seems to be responding in kind. Sales in April were as follows:
Single Family Homes
57 Sold
Average Price: $971,634
Average Percentage of Listing Price: 96.06%
Average Days on Market: 122
Condominiums
8 Sold
Price: $539,250
Percentage of Listing Price: 97.7%
Days on Market: 112
It is astounding to see that closed sales INCREASED in April 2020 when compared to April 2019. There were 57 sold single-family homes and 8 condos closed in 2020 for a total of 65 transactions. In April 2019, there were 50 single-family homes and 7 condos for a total of 57 transactions. While it is fair to say that some of these transactions originated before the full impact of coronavirus was known, it is also fair to say that buyers were not turned away by the virus and backed out of a contract. Likewise, a number of these transactions would have originated during March when COVID-19 was peaking. While the situation is day to day and every day brings something different, April saw a significant improvement over March and this helps to demonstrate the stability of the LBI real estate market. The bad news is at present there are only 54 pending sales. Compared to a year ago there were over 100. This will lead to a drop off in sales unless activity picks up. Anecdotally, we are seeing far more activity so it is likely that this gap will lessen.
May 2020 Sales in the LBI, NJ Real Estate Market
May showed some interesting sales statistics as the world, and the LBI real estate market, began to see some reactive data from COVID-19. Sales in May 2020 were as follows:
Single Family Homes
36 Sold
Average Price: $978,869
Average Percentage of Listing Price: 94.3%
Average Days on Market: 136
Condominiums
7 Sold
Price: $530,393
Percentage of Listing Price: 97.2%
Days on Market: 102
There was a sharp drop off in sales this month compared to both the preceding month and a year over year (May 2019 to May 2020) examination. This is not at all surprising. We have to remember that sales data reported on this website originated, in most cases, 30-60 days prior. That places us at the height of the COVID outbreak. Buyer confidence was understandably low and showing homes was difficult if not impossible. This is a stark contrast to the market we are witnessing today. Buyer activity is extraordinarily high right now and the market is busier than I have ever seen it in 15 years of selling real estate on Long Beach Island. At present there are about 130 pending sales on the market. Compared to the same time last year there were only 90! That is a massive increase in activity. We will keep an eye on the situation to see if these trends continue.
June 2020 Sales in the LBI, NJ Real Estate Market
The real estate market on Long Beach Island is on fire. Frankly, it is a level of activity that knows no recent precedent! Sales in June 2020 were as follows:
Single Family Homes
49 Sold
Average Price: $1,197,867
Average Percentage of Listing Price: 94.64%
Average Days on Market: 146
Condominiums
7 Sold
Price: $890,000
Percentage of Listing Price: 96.47%
Days on Market: 73
The amount of activity in the LBI real estate market is amazing. We are without a doubt in a seller's market. There are currently over 150 pending sales on LBI and inventory is about half of what it was a year ago. The question is, will it last? There is a real sense of urgency to be in a home for Summer 2020, especially with travel imitations in place. Some of the buyer activity is undoubtedly fueled by this along with other external factors like low interest rates. That said, the real estate market on Long Beach Island has always proven to be resilient and the trends we are currently witnessing seem to point to the market remaining strong in the near term.
July 2020 Sales in the LBI, NJ Real Estate Market
The Long Beach Island real estate market is booming. This is a seller's market through and though. Sales for July are as follows:
Single Family Homes
73 Sold
Average Price: $1,321,027
Average Percentage of Listing Price: 95.65%
Average Days on Market: 133
Condominiums
9 Sold
Price: $557,156
Percentage of Listing Price: 94.89%
Days on Market:221
There were a total of 82 sold single family homes and condos in July 2020. In a year over year comparison with July of 2019 there were 27. This is a MASSIVE increase in activity. This is, as I said, a seller's market. Buyers have to be very careful when navigating this market and focus on what drives value in the sale market. If you are thinking of selling, this is a great opportunity and one that should be taken advantage of. At the moment there are about 197 pending sales on LBI. This time last year, there were 115. Welcome to 2020!
August 2020 Sales in the LBI, NJ Real Estate Market
August 2020 was a game changer. This month set a record in closed sales as the LBI real estate market continues to see unheard of levels of buyers entering into transactions. Sales for August 2020 are as follows:
Single Family Homes
128 Sold
Average Price: $1,318,265
Average Percentage of Listing Price: 96.24%
Average Days on Market: 124
Condominiums
22 Sold
Price: $528,527
Percentage of Listing Price: 97.53%
Days on Market: 197
There were a total of 150 sold single-family homes and condos in the Long Beach Island real estate market in August 2020. To give this level of activity some context, July 2020 saw 82 sold homes (which is still an imposing number), and August 2019 had 47. This represents almost twice as many homes sold this month compared to last month and three times the number of homes sold in August 2020 as did in August 2019. The average price of a single-family home was also about $300,000 higher in 2020 as compared to 2019. Year to date, there have been 362 sold single-family homes on Long Beach Island, and there are currently 199 pending sales. The whole of 2019 saw 499 closed single-family homes, so the LBI real estate market looks to be well ahead of 2019 in all respects. Now, more than ever, buyers have to be careful when purchasing Long Beach Island and understand what creates value.
September 2020 Sales in the LBI, NJ Real Estate Market
The LBI real estate market is on fire with 106 closings in September. Sales for September 2020 are as follows:
Single Family Homes
93 Sold Average Price: $1,440,582
Average Percentage of Listing Price: 97.95%
Average Days on Market: 110
Condominiums
12 Sold Price: $642,408
Percentage of Listing Price: 99.02%
Days on Market: 47
While the total number of sales in September 2020 was lower than August 2020, a year over year comparison shows shocking differences. There were a total of 60 closed transactions in September 2019 (51 single-family homes and 9 condos) compared to 106 in September 2020. What is also very interesting is the difference between the listing price and sales price and the days on market. In 2019, the average difference between list and sales price was just over 95% whereas in 2020 it was almost 98%. In 2019 homes spent 132 days on the market and in 2020, that number dropped to 110. While 3 percentage points and 22 days may not sound like a lot, it does tell us a great deal about the behavior of buyers in the current climate. They are willing to pay more and do so faster. Competition is high as evidenced by the 252 homes that are currently pending in the LBI real estate market.
October 2020 Sales in the LBI, NJ Real Estate Market
The LBI real estate market once again had a record month with over 100 closed sales. Sale transactions for October 2020 are as follows:
Single Family Homes
99 Sold
Average Price: $1,388,145
Average Percentage of Listing Price: 98.67%
Average Days on Market: 65
Condominiums
10 Sold
Average Price: $660,160
Percentage of Listing Price: 97.93%
Days on Market: 48
We saw some exciting trends in the monthly sales this October. There were 99 closed sales, up from last month, but the average price was slightly lower. What was dramatically different was the difference between the listing price and sales price and the time the home spent on the market. The list price/sales price difference dropped to one of the lowest levels ever seen, and the days on the market dropped to just over two months. For some comparison, over the past year, the average days on the market hovers around six months! Currently, there are about 210 pending sales in the Long Beach Island real estate market, so things don't show any sign of slowing down.
November 2020 Sales in the LBI, NJ Real Estate Market
November slowed down somewhat, but this is normal for this time of year. Sale transactions for November 2020 are as follows:
Single Family Homes
86 Sold
Average Price: $1,596,277
Average Percentage of Listing Price: 98.52%
Average Days on Market: 73
Condominiums
12 Sold
Average Price: $656,658
Percentage of Listing Price: 99.67%
Days on Market: 79
While overall activity did lessen in November, sales are still considerably higher than the same time last year. In November 2019 there were 53 closed sales compared to 98 in 2020. In 2019 the average price of a single family home was $980,000 and in 2020 it was just shy of $1,600,000. Both activity and the average price are clearly much higher than the same time last year. Inventory continues to be low and demand continues to be very high so the LBI real estate market looks to be stable for the time being. Currently, there are about 150-175 pending sales in the Long Beach Island real estate market, so activity is still very high.
December 2020 Sales in the LBI, NJ Real Estate Market
December ended the year on a strong note with almost 90 closed transactions in the Long Beach Island real estate market. Sale transactions for November 2020 are as follows:
Single Family Homes
70 Sold
Average Price: $1,590,519
Average Percentage of Listing Price: 98.58%
Average Days on Market: 68
Condominiums
12 Sold
Average Price: $687,875
Percentage of Listing Price: 99.47%
Days on Market: 83
December once again showed slower activity than the preceding month, but I still attribute this to the time of year. Looking at a year over year comparison to December 2019, we see almost double the number of sales and the average sales price being about 25% higher. This clearly shows strength and demand in the LBI real estate market. We continue to see a much lower average days on market and far less negotiation taking place in the sale of a home. Currently, there are about 125-150 pending sales in the Long Beach Island real estate market.
Year End
2020 was a year for the books and full of surprises at every turn. The real estate market was no exception. Long Beach Island had one of the best years in history, in spite of being all but shut down for several months at the height of the pandemic. Sales were as follows:
Single Family Homes
722 Sold
Average Price: $1,322,376
Average Percentage of Listing Price: 97.19%
Average Days on Market: 109
Condominiums
105 Sold
Price: $602,003
Percentage of Listing Price: 97.68%
Days on Market: 111
There were a grand total of 954 closed sales on Long Beach Island in 2020. Of these, there were 839 single family homes and condos sold in 2020. These are shockingly high numbers. As a comparison, in 2019 there were 589 sold single family homes and condos. Looking at the average sales price between 2019 and 2020 shows similar increases. The average price of a single family home in 2019 was $1,156,962 and in 2020 it was $1,322,376. Homes sold for around 2% closer to their listing price in 2020 and spent about 1/3 less time on the market. The most expensive sale in 2020 was one of my listings, 144 E Dune Lane, which sold for just shy of $6,000,000. All the statistics point to 2020 having been a remarkable year in the Long Beach Island real estate market. If 2020 has taught us anything, it is we can't predict the future, and this is true of the real estate market as well. Right now, as I am writing this update, inventory levels are very low, demand is very high and interest rates on fixed rate mortgages are at historic lows. The current market trends all point to 2021 being a strong year as well and I believe, barring some major unforeseen event, we are not yet at the top of the market.