Overview of Recent National Real Estate Activity and LBI NJ Real Estate
- High Tides Digital Marketing
- Dec 26, 2017
- 3 min read
Overview of Recent National Real Estate Activity and LBI NJ Real Estate
Long Beach Island Real Estate
When looking to purchase a home in the LBI NJ real estate market it is of course advisable to understand the greater forces at work in the national real estate market. This can help to guide one's choice on making an investment on Long Beach Island. Certain national metrics are better applied than others to a resort and second home market like Long Beach Island but nevertheless it is helpful to review the data before deciding to buy or sell a home in the LBI real estate market. This Overview of Recent National Real Estate Activity and LBI NJ Real Estate can go a long way to helping one make this choice.
Overview of Recent National Real Estate Activity and LBI NJ Real Estate
The shortage of listings that has defined the U.S. home sales market in recent years will begin to ease in the second half of 2018, according to a new report, but not before setting a record for consecutive months of decline. Increased inventory will help slow price appreciation, especially at higher price points, according to the report, published by realtor.com®. That will come as welcome news after the S&P CoreLogic Case-Shiller 20-city index this week showed that prices rose 6.2 percent in September from a year earlier, the largest increase in more than three years. Inventory has decreased on a year-over-year basis in each of the past 29 months, according to the National Association of Realtors®. The longest streak on record is 30 months. Relief is unlikely to come all at once, and some metropolitan areas will benefit before others, according to Danielle Hale, chief economist at realtor.com®. Homebuilding is finally catching up with demand, Hale said. Construction can have a chain-reaction effect on inventory, because buyers of newly built homes are often sellers of existing ones. “I think it will be a three-year recovery process to get back to normal,” Hale said. “We’re still going to be in a shortage situation in much of the country.” Source: Bloomberg Renters are seeing their budgets increasingly squeezed as incomes stagnate while homeowners are reaping the benefits of lower interest rates. An analysis from Zillow shows that renters are paying out a larger share of their incomes on rents – an extra $2,000 a year – while homebuyers need a smaller share of their income to pay their house payments. In the third quarter of 2017, the median nationwide rental required 29.1% of median monthly income, up from 25.8% in the years leading up to the housing bubble. Payments on home loans required 15.4% of median income compared to 21% historically.
"In most markets, current renters are at a disadvantage compared to years past because paying the rent takes up a much larger share of their income than it did before," said Zillow® Chief Economist Dr. Svenja Gudell. "For many people, that can mean less cash to put toward paying off student debt, building an emergency fund, or saving for retirement. For those hoping to buy a home, it could be a significant part of their down payment." Source: Mortgage Professional America
Buying a Home in the LBI NJ Real Estate Market
We too have been seeing a slow down in inventory levels. This is especially true in lower price points throughout the market and even more so in the lower price rages of homes that are elevated above base flood elevation. The rental information noted above is far less relevant to a second home market like Long Beach Island but it is still an interesting fact to consider when looking to buy or a sell a home. Overall things look promising for the real estate market on Long Beach Island in 2018 but the impact of the tax bill does still need to be examined. For more information about Overview of Recent National Real Estate Activity and LBI NJ Real Estate feel free to call, text or email me anytime.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
