Are LBI Real Estate Sellers Reducing Prices?
- Apr 16, 2020
- 2 min read
Price Reductions and Coronavirus in the Long Beach Island Real Estate Market
It is clear that we are in a recession and with all the negative news it is understandable why some buyers and sellers are worried. While we are still early on in the unfortunate pandemic of COVID-19 or coronavirus, there are already some patterns emerging. The answer, at least for today, is that prices are holding steady in the LBI real estate market. This is not a surprise as there are many historical markers that support a rise or at least a maintaining of real estate prices on Long Beach Island and elsewhere.
Are LBI Real Estate Sellers Reducing Prices?
Below is a chart showing the sale price to list price ratio of a home in the Long Beach Island real estate market since the start of 2020. This represents all sales in the MLS including single family homes, condominiums, duplexes, etc. in the LBI NJ real estate market:
The chart shows some interesting trends. Looking at the sale price to list price ratio, April has shown the least amount of negotiation so far this year. Looking at the sales price to original price ratio, we see April being only 0.3% lower than the best month in 2020. This is significant considering that a closed sale in April most likely originated during the coronavirus. While in fairness the full effect of COVID had not been felt when these transactions were likely started, the fact remains that sellers on the whole negotiated less, not more.
Price Reductions and Coronavirus in the Long Beach Island Real Estate Market
If you follow my website you will know that I for one feel prices will hold steady or increase over the next several months. Any changes to the market should be minimal. While activity has decreased significantly, there is still a great deal of interest in the market. Provided things do not worsen, I am confident that the LBI real estate market will be fine. The data above supports this conclusion. While still early on, it shows that confidence remains in the LBI real estate market. If you have any questions about buying, selling 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
