Will Coronavirus Stall the LBI Real Estate Market?
- High Tides Digital Marketing
- Mar 13, 2020
- 2 min read
Long Beach Island Real Estate and the Coronavirus
With the recent drop in the financial market, it is easy to understand why some buyers think the Long Beach Island real estate market will slow down or stall. This is a normal reaction in the face of the terrible news we have been receiving. That said, it is vital to keep an eye on the fundamentals of the markets and let that be the guide. In the short term, the most significant of these fundamentals is the number of homes for sale. Inventory levels of homes for sale on Long Beach Island are shockingly low. Even if some buyers hold off on a purchase, there will most likely still be enough in play to keep the market moving.
Will Coronavirus Stall the LBI Real Estate Market?
Below is a breakdown of the number of homes for sale month by month over the past five years on Long Beach Island:
Month | Active Listings, Number of 2015 | Active Listings, Number of 2016 | Active Listings, Number of 2017 | Active Listings, Number of 2018 | Active Listings, Number of 2019 | Active Listings, Number of 2020 |
Jan | 802 | 781 | 743 | 653 | 688 | 573 |
Feb | 847 | 846 | 761 | 719 | 763 | 580 |
As you can see, there are far fewer homes for sale today than there have been at any point in the last half-decade. While the fears of a recession and economic downturn are undeniable, so too is the simple law of supply and demand. The LBI real estate market is highly desirable and, as such, creates demand in almost any market. This was evident in the last downturn of 2008 and 2008. The data tells us that 2010 or so was the bottom of the market after the financial crisis, and even in that year, we saw over 400 transactions take place in the LBI real estate market. These sales took place in another period of shallow inventory. If past trends repeat, as they often do, buyer activity will continue as the low number of homes for sale will stabilize the market.
Buying in the Long Beach Island Real Estate Market
Nobody knows what the future of the LBI real estate holds. There will most likely be some sellers who are eager to sell and may let their home trade at a discount. That said, I believe any drop will be minor and that the LBI real estate market will remain stable. There are always opportunities in any market, and there will be in this market too. Knowing what determines the value and how to beat the market will go a long way in the months to come. 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
