Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

LBI Real Estate Buyers

Nathan Colmer | Van Dyk Group

C: 609.290.4293 | O: 609.492.1511

Buyers in the LBI Real Estate Market

LBI New Jersey Real Estate

The Long Beach Island real estate market offers buyers some excellent opportunities, and the LBI real estate market has remained strong even in recent economic downturns. Buying opportunities exist on LBI for several reason:

  • The LBI market did not see as significant a drop during the 2008 recession as other markets around the country.
  • There are a comparatively low number of foreclosures, short sales and other distressed homes in the LBI real estate market.
  • Historically, shore real estate has proven to be an excellent investment
  • The robust LBI rental market helps to provide stability to housing prices and keeps the market surprisingly affordable.

Buying real estate on Long Beach Island, like buying any investment, comes down to timing and price. Even when inventory is low, with patience and an understanding of what factors create value in an LBI real estate deal, a buyer can succeed in their transaction with a strong financial position.. 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey
Buyers | LBI Real Estate | Long Beach Island New Jersey

LBI Real Estate Buyers

 

 

What Makes the LBI Real Estate Market Unique

Buying a home in the LBI real estate market offers some exciting opportunities Apart from the obvious enjoyment of owning a beach house, the LBI real estate market serves as an excellent investment with income generated from both long term appreciation, summer vacation rentals or even by building a new home in the LBI real estate market.

Buyers | LBI Real Estate | Long Beach Island New Jersey

Long Beach Island Real Estate Investment

The LBI Real Estate Market : 2006-Today

When looking to buy a home on Long Beach Island, it is helpful to understand where the market has traded and how circumstances have impacted home prices. The LBI real estate market can be examined in the context of historical events, each with a unique effect on the market, buyer behavior, and home prices. 


The Great Recession

In the pre-2008 real estate market, before the crash, most economists would agree that 2006 was the height of the real estate market on LBI and elsewhere around the country. For the year 2005-2006, 451 single-family homes sold in the LBI real estate market with an average sale price of about $1,121,000. Homes sold in an average of 116 days. In 2010 and 2011, which historically was the low point in the market, the average sale price was about $1,015,000 and $950,000, respectively. Homes on LBI did sell slower, with an average of about 175 days on the market. Looking at the data, it is clear that home prices fell from the height of the market but that the decrease in the average sale price on LBI is far less than other markets around the country. 


Hurricane Sandy

Hurricane Sandy, which made landfall at the end of October 2012, had a monumental impact on the local LBI real estate market. Hurricane Sandy brought flood insurance issues to the forefront and prompted a wave of new construction, which persists even today. 2012 showed renewed strength in the sales market with 373 homes selling with an average price of $939,000. This is particularly encouraging when we consider that two months of the 2012 real estate market were all but lost to Hurricane Sandy! 2013 initially suffered from Hurricane Sandy as the LBI real estate market got off to a slow start. However, the market rebounded as clarity emerged around flood insurance, rebuilding and LBI was open for summer 2013. 2014 and 2015 both showed very positive home sale numbers with 2015 being one of the best years on record up to that time. Both the number of homes sold and the average sale price had substantially increased. The LBI real estate market continued to show strong and stable growth year after year, with the market increasing around 15% between the "end" of the Hurricane Sandy market in 2014/2015 through 2020.


The COVID Market

2020 saw changes to our lives that few could have ever predicted. The LBI real estate market, and the national market, was no exception. Demand for homes skyrocketed, and prices surged as well. In many parts of the LBI real estate market, prices doubled in only 2 years. The desire to live and work at the beach, low-interest rates, and a general realization of the value in a home on Long Beach Island fueled demand to a level we rarely have seen in the past. It is fair to say that the COVID market ended in 2022, and while this was the shortest of the significant market events, it was and is among the most impactful. Balance has returned to the market, but demand remains exceptionally high. Inventory levels in the LBI real estate market are at one of the lowest levels since data has been recorded, and this, coupled with the still very high demand from buyers, is likely to keep home prices stable, if not increase. Throughout 2022, even as mortgage rates rose, home prices increased as well, with the average home trading about $200,000 higher from the start to the end of 2022. 


Over the last 20 years, home sales on LBI have been steadily increasing, with naturally occurring dips, adding to the argument that the LBI NJ real estate market makes a smart investment. More recently, the LBI real estate market has been seeing steady and stable growth. New construction has been taking place all over LBI, which helps to improve property values in all facets of the market. The demand for the LBI real estate market, the solid rental season, and the overall stable history of Long Beach Island are likely to keep the market in good standing.


The LBI Real Estate Market : Why LBI Real Estate Makes a Good Investment

The LBI real estate market has dramatically improved over the past two decades. While of course, past results cannot ensure future performance, it is encouraging to note that this improvement has been realized even in the face of adversity. Below are the average sale prices of single-family homes on LBI from 2000 through last year. Note that 2013 showed a lower average sales price since it includes storm-damaged homes, which were sold as vacant land rather than single-family homes. This is noteworthy because these homes needed to be rebuilt, which is an expensive undertaking, so even though the average sales price was lower, the capital investment was much higher:

  • 2000-$416,000
  • 2001-$483,000
  • 2002-$591,000
  • 2003-$750,000
  • 2004-$833,000
  • 2005-$1,041,000
  • 2006-$1,121,000
  • 2007- $965,000
  • 2008- $1,000,000
  • 2009- $875,000
  • 2010- $1,015,000
  • 2011-$951,000 (300 Closed Sales)
  • 2012-$939,789 (374 Closed Sales)
  • 2013-$903,366 (318 Closed Sales)
  • 2014-$975,051(380 Closed Sales)
  • 2015-$1,027,057 (429 Closed Sales)
  • 2016-$990,155 (475 Closed Sales)
  • 2017-$1,106,290 (541 Closed Sales)
  • 2018-$1,116,102 (491 Closed Sales)
  • 2019-$1,156,962 (496 Closed Sales)
  • 2020- $1,322,376 (722 Closed Sales)
  • 2021-$1,438,414 (651 Closed Sales)
  • 2022-$1,926,465 (352 Closed Sales)

From an investment standpoint, this data reflects only the average increase and decrease of LBI real estate's value and does not take into consideration carrying costs or any rental money that could have been earned over these years. It also does not take into account all the fun and memories made from owning a beach house!

The LBI Real Estate Market : Foreclosures and Bank Properties on LBI

The LBI real estate market has a very low number of bank properties and foreclosures compared to other national markets. Bank involvement in a sale in the LBI real estate market can be broken into the following categories::

The low number of foreclosures and distressed sales has helped to keep the LBI real estate market strong. Without a glut of bank inventory to drag down the market, sale prices have remained stable. If you would like, you can view a list of all bank properties and foreclosures on LBI by visiting my page dedicated to short sales, bank owned properties and foreclosures, but be forewarned, this is a watch list, and the vast majority of these homes will never actually come to the market. Rather, their owners will resolve whatever issue triggered their inclusion on this list.

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

About Long Beach Island

Read about the Long Beach Island area including a brief history of the community and the pros and cons of each area.

 

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Property Types in the LBI Real Estate Market

There are many forms of ownership in the LBI real estate market. Buyers can choose from single family homes, duplexes, condos, vacant land, storm damaged homes and even interval ownership (similar to a timeshare). Read about the different forms of ownership on Long Beach Island.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Locations in the LBI NJ Real Estate Market

There are several distinct locations in the LBI real estate market, and a buyer must understand the difference between them. The most commonly recognized locations are: Oceanfront, Oceanblock, Oceanside, Bayside, Bayblock, Bayfront and Lagoonfront. You can read more about each location below.

 

 

 

 

 

 

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Flood Insurance

Flood insurance is an essential topic for all Long Beach Island real estate buyers to understand. The costs of flood insurance, like all ownership costs, are expected to rise, and while the majority of homes on LBI will see manageable expenses, some will not. There are ways to make this expense more manageable and, in many cases, even less expensive than homeowners insurance! Having an understanding of flood insurance and the LBI real estate market is essential before making any investment in the area.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Hurricane Sandy and the LBI Real Estate Market

Hurricane Sandy was a significant event in the history of Long Beach Island. Even though it was a long time ago, it is still an important concept to understand when buying a home on LBI. Hurricane Sandy called to the forefront questions about flood insurance, house raising and the risk of future storms.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Building a New House in the LBI NJ Real Estate Market

Building a new house in the LBI real estate is...by far...the best investment you can make on Long Beach Island. I specialize in this type of transaction, and the average project sees between 25% and 30% immediate equity in the finished project. Building a new home can be a great way to hedge against market turns or end up with a "better" house than your budget would usually allow.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

LBI Rentals

Summer rentals are an important part of the Long Beach Island economy. It is important for a buyer to understand the rental process and the income potential when investing in the LBI NJ real estate market.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Buyer Agency

Before any purchase is considered it is important for a buyer to have an understanding of the general process and how real estate agents represent their clients in the Long Beach Island real estate market.

 

 

 

Buyers LBI Real Estate

The COVID Real Estate Market

COVID had a significant impact on the LBI real estate market. While this market only ran from 2020-2022, it changed the average price point, what buyers are looking for and depleted inventory levels to historic lows. It also created new opportunities for buyers and sellers in the LBI real estate market.

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Start Your Search

Get Started! Search the LBI real estate market and contact me with any questions!

 

 

 

Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer
Long Beach Island New Jersey Real Estate | LBI NJ Real Estate | Nathan Colmer

Real Estate Tip

Make your offer as strong as you can. This can involve a number of creative methods depending on your situation and the house you are looking to buy. Many times the offer with the highest price is turned down in favor of a lower offer with better terms!

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Hurricane Sandy and the Long Beach Island Real Estate Market

Hurricane Sandy significantly impacted the Long Beach Island NJ real estate market. As a whole, the LBI real estate market faired very well through the storm, and while there was substantial damage to many homes on Long Beach Island, the LBI area has made an excellent recovery. Prices remained steady in the wake of the storm and have since increased dramatically. While initially, some homes sold for a much lower price than they would have prior to Hurricane Sandy, these lower prices reflected the home's condition rather than depreciation in the LBI real estate market. Since that time, prices throughout the LBI real estate market have risen. .

 

 

 

Buyers | LBI Real Estate | Long Beach Island New Jersey

Long Beach Island Flood Insurance

Flood insurance is a complicated issue in the LBI real estate market that requires a complete understanding before buying any home. Several metrics are used to determine the cost of flood insurance, and even homes that are elevated high on pilings can still be at risk of high costs. There are also many ways to manage this expense, including looking into private flood insurance. In many instants, the cost of flood insurance is less than a homeowners policy will be. Read the basics of flood insurance on Long Beach Island and learn how it impacts buying a home.

 

 

 

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Your LBI Beach House is a Phone Call Away! Call Nathan Colmer 609-290-4293

Nathan Colmer

609.290.4293

ncolmer@vandykgroup.com

The Van Dyk Group

12800 Long Beach Blvd

Beach Haven Terrace NJ 08008

609.492.1511