Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Read LBI real estate monthly sales and Long Beach Island New Jersey real estate information provided by Nathan Colmer of The Van Dyk Group. LBI real estate sales are broken down on a month by month basis for single family homes, condos and duplexes on Long Beach Island.
2022 ended with a strong reporting of sales and a higher average price. Sales for the year were as follows:
Single Family Homes
Average Price: $1,926,465
Average Percentage of Listing Price: 98.1%
Average Days on Market: 62
Condominiums
Price: $832,969
Percentage of Listing Price: 98.7%
Days on Market: 69
The LBI real estate market showed a significant drop in the number of homes sold between 2021 and 2022 (533 vs 352 respectively) but the average sales price increased by almost $500,000 over the same time. Interestingly enough, this increase has been spread out over the entire year. Prices have been increasing throughout the Long Beach Island real estate market while at the same time mortgage rates have been on the rise. Generally speaking, the LBI real estate market is no that sensitive to interest rates when they move in either direction, and 2022 seems to prove that. Inventory, or more accurately the lack of inventory, remains the single biggest issue facing the sales market. Buyer demand is very high, but with low inventory there are simply not enough homes to meet this demand. The year ended with about 100 active single family homes for sale and about 50 pending listings in the LBI NJ real estate market.
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The LBI real estate market ended 2022 on a generally positivie note. Sales were as follows:
Single Family Homes
Average Price: $2,053,591
Average Percentage of Listing Price: 95.9%
Average Days on Market: 63
Condominiums
Even though no condos sold in December 2022, there were still 22 sold single family homes and these homes reported an average sales price over $2,000,000. This caps a year of price appreciation, even as interest rates rise. Low inventory is still a challenge and will likely result in fewer sales as we move into 2023.
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As we move towards the end of 2022, we continue to see strong and steady activity in the LBI real estate market. Sales in November were as follows:
Single Family Homes
Average Price: $1,957,185
Average Percentage of Listing Price: 96.4%
Average Days on Market: 76
Condominiums
Price: $1,110,303
Percentage of Listing Price: 97.6%
Days on Market: 53
The LBI real estate market showed its strength once again in November. In spite of higher interest rates, there was nearly one closed transaction per day and an average sales price just under $2,000,000 for a single family home. This is all taking place in an environment where rates have been rising and predicted to rise higher. Now, it seems like the mood has changed and the increases to the interest rates will be smaller. There is even talk of rates falling in the next several months, more than they have recently, which would indicate the worst is perhaps behind us. Overall, the inventory on LBI has been falling to near pandemic levels as buyers continue to remain active. Prices have dropped a little, which had to happen at some point, but the drop has been minimal and around 5% or so on average. There are currently about 125 active single family homes for sale (which is small drop from last month) and about 70 pending listings in the LBI NJ real estate market.
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The LBI real estate market continues to balance out, but a crash or meaningful drop in prices seems unlikely. Long Beach Island real estate transactions in October 2022 were as follows:
Single Family Homes
Average Price: $2,148,667 (an all time high)
Average Percentage of Listing Price: 97.8%
Average Days on Market: 64
Condominiums
Price: $693,083
Percentage of Listing Price: 98.5%
Days on Market: 81
While things have slowed down from the heights of the COVID market, homes sales on Long Beach Island remain strong. The LBI real estate market has never been that heavily impacted by mortgage rates, and it is doubtful this will be any different. All buyers and sellers should remember that there is nothing in the real estate market itself causing a slowdown. Rather, interest rates are causing some buyers to pause, and when rates drop again (as they certainly will in the future), investment in real estate should prove to be a very sound play. There are currently about 143 active single family homes for sale (which is small drop from last month) and about 76 pending listings in the LBI NJ real estate market.
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The fall real estate market on Long Beach Island is a market in transition. Higher mortgage rates are balancing out the market. Transactions were as follows:
Single Family Homes
Average Price: $2,004,309
Average Percentage of Listing Price: 97.5%
Average Days on Market: 29
Condominiums
Price: $524,500
Percentage of Listing Price: 100%
Days on Market: 16
There is no doubt that the LBI real estate sales market is changing. While home sales on Long Beach Island are not that impacted by rising or falling interest rates, they are not immune to them either. As rates go higher, there will inevitably be some impact on home prices. While a crash is not likely, a more balanced market certainly is. September's sales data shows this. The average price was still over $2,000,000 (double what it was few years ago) but the difference between listing price and sales price has begun to grow. This shows that buyers are willing to buy, but sellers can no longer push the market to new heights. There are currently about 145 active single family homes for sale and about 83 pending listings in the LBI NJ real estate market. As the number of homes has increased, so too has the number of pending sales which shows buyer confidence is still strong.
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The final month of Summer on Long Beach Island say some good activity in the sales market. Transactions were as follows:
Single Family Homes
Average Price: $2,149,047
Average Percentage of Listing Price: 99.7%
Average Days on Market: 50
Condominiums
Price: $1,030,500
Percentage of Listing Price: 94.4%
Days on Market: 61
As the LBI real estate market moves into a more balanced market, both buyers and sellers have opportunities. The market still favors sellers with low inventory and high demand, but buyers do have a little more to pick from. Interest rates, while higher, are still historically very low. Inventory has increased, but was also absorbed nearly as fast as it came on the market. There are currently about 116 active single family homes for sale (down about 10% from last month) and about 77 pending listings in the LBI NJ real estate market, so clearly buyers are still transacting homes on Long Beach Island.
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The LBI real estate market continues to transition back into a more balanced market. Sales were as follows:
Single Family Homes
Average Price: $2,196,306
Average Percentage of Listing Price: 99.3%
Average Days on Market: 49
Condominiums
Price: $675,250
Percentage of Listing Price: 101%
Days on Market: 72
Interest rates continue to move upward, as does the number of homes for sale in the LBI real estate market. While some would term this as a weakening of the market, it is really just a return to a balanced market. The fundamentals of both the national and the Long Beach Island real estate market are very strong, and there are no indications that a crash is coming. While it is possible that prices might adjust slightly, around 5%, it is doubtful there will be any major impact on the market. There are currently about 132 active single family homes for sale and about 82 listings in the LBI NJ real estate market, so clearly buyers are still transacting homes on Long Beach Island.
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As interest rates rise and the country moves closer to a recession, many buyers and sellers in the LBI real estate market are wondering where the market is heading. Of course nobody really knows, but the numbers point to the LBI real estate market remaining stable. Sales were as follows:
Single Family Homes
Average Price: $2,042,060
Average Percentage of Listing Price: 99.2%
Average Days on Market: 58
Condominiums
Price: $860,000
Percentage of Listing Price: 103.4%
Days on Market: 35
A year over year look at the numbers shows us there was a increase in the number of homes sold in June by about 10%. This is remarkable given the lower inventory numbers we are seeing in the Long Beach Island real estate sales market. While it is true that these sales originated 30-60 day ago or so, interest rates were already rising and the predictions were unanimous that they would only go up. The higher rates, and the fear of even higher rates, had little to no impact on buying pattens. As we move into what is most likely an inflationary recession, hard assets like real estate are likely to perform well and this, compelled with the still very low number of homes for sale on the market, should keep the real estate market steady both locally and nationally. There are currently about 115 active single family homes for sale and about 76 listings in the LBI NJ real estate market.
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May saw about the same number of sales as the prior month in the LBI real estate market. Sales were as follows:
Single Family Homes
Average Price: $1,732,367
Average Percentage of Listing Price: 99.0%
Average Days on Market: 48
Condominiums
Price: $1,037,375
Percentage of Listing Price: 102%
Days on Market: 43
The number of closed sales has remained about the same in the past several months, which makes perfect sense when one considers that the number of homes for sale on Long Beach Island has remained almost unchanged. Inventory is being absorbed as quickly as it comes on the market and so long as this demand persists, we will most likely be in the kind of sales environment. While there has been some improvement in the inventory levels, we are still well below average with about 120 homes and condos on the market for sale.
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April saw another steady month of home sales in the Long Beach Island NJ real estate market in spite of a low inventory environment. Sales were as follows:
Single Family Homes
Average Price: $1,857,546
Average Percentage of Listing Price: 99.1%
Average Days on Market: 60
Condominiums
Price: $667,477
Percentage of Listing Price: 97.1%
Days on Market: 68
There was one more sold home in April 2022 as compared to March 2022. The average price of a single family home on LBI saw a significant jump with the average sales price about $200,000 higher than last month. The market has been holding steady with roughly 30-40 transaction each month. At present, there are about 86 single-family homes for sale ( a number of which already have offers on them) and about 90 pending single-family homes on LBI. This represents a marginal improvement in the number of homes for sale in the Long Beach Island real estate market.
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March saw a notable up-tick in activity over the previous month. Sales were as follows:
Single Family Homes
Average Price: $1,686,786
Average Percentage of Listing Price: 98.2%
Average Days on Market: 60
Condominiums
Price: $843,333
Percentage of Listing Price: 98.2%
Days on Market: 72
The number of closed sales saw a large increase, which is not surprising given the time of year. January and February closed sales reflect the slower holiday season where as March and April sales will reflect the busier winter months. As we come into the spring market, buyers face a challenging environment which low inventory and rising interest rates. It is doubtful the higher rates will have an meaningful impact on prices in the LBI real estate market, especially when inventory is so low. At present, there are about 80 single-family homes for sale ( a number of which already have offers on them) and about 95 pending single-family homes.
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February saw a further reduction in the number of homes for sale and buyer activity soared. Sales were as follows:
Single Family Homes
Average Price: $1,419,367
Average Percentage of Listing Price: 96.6%
Average Days on Market: 65
Condominiums
Price: $662,000
Percentage of Listing Price: 986.9%
Days on Market: 48
The number of closed sales fell in February as compared to January and was far lower than February 2021. None of that is a surprise. Inventory is so low, there are simply not enough homes to go around. While buyer activity and confidence in the LBI real estate market is very strong, without more inventory, the volume of home sales will drop. Right now, there are less than 90 active single family homes for sale on Long Beach Island, and by my estimation roughly a third of those listings have an offer or are in attorney review. Buyers still have a lot of opportunity in the market if they understand what makes value and are willing to be competitive. When the right opportunity presents itself, a buyer has to act. With the unfortunate conflict in the Ukraine, interest rates have dropped back down. Rates were increasing so this dip in rates can offer a good incentive for a buyer at the moment.
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2022 started off with about a quarter of the transactions as January 2021 did and with a higher average price, but that is to be expected in this low inventory environment. Sales were as follows:
Single Family Homes
Average Price: $1,878,290
Average Percentage of Listing Price: 97.8%
Average Days on Market: 36
Condominiums
Price: $689,750
Percentage of Listing Price: 98.3%
Days on Market: 38
The LBI real estate changed a great deal in the last 12 months. A year or year comparison shows a price increase of about 25.8% while the number of sold homes dropped by about 36%. With so few homes on the market for sale, this trend is unlikely to reverse. In January 2021 there were around 200 homes for sale in the LBI real estate market and today, there are about 125. The general consensus is that interest rates will rise in 2022, and we have already started to see this take shape. It is doubtful that this will have a significant impact on the sales market. Buyers can expect to face stiff competition, but there are still plenty of opportunities out there. It just takes patience and discipline!
