The Long Beach Island New Jersey Real Estate Market
The LBI real estate market on Long Beach Island NJ is one of the major driving factors of the Long Beach Island economy. The LBI real estate market is responsible for the sale and rental of vacation properties and investment homes that comprise the majority of the summer tourism industry which sustains the LBI area. The LBI real estate market is broken into several categories which include:
- Single family homes in the LBI real estate market
- Multi family homes or duplexes on LBI
- Condominiums on Long Beach Island
- Storm damaged homes in the LBI real estate market
- Vacant land and "tear downs" or "knock downs" on Long Beach Island
- Interval ownership or time shares on LBI
- Commercial real estate on Long Beach Island
Regardless as to whether you are looking to buy or sell in the LBI real estate market, it is important to have an understanding of current trends in the real estate market including the average sale price, the average days on the market and the difference between a listing price and a selling price. This information is vital when looking to buy or sell on LBI. As single family homes represent the majority of the Long Beach Island NJ real estate sales transactions, this is a good pulse for the LBI real estate market as a whole.
LBI Real Estate Market on Long Beach Island NJ Information
LONG BEACH ISLAND LISTING PRICE AND DAYS ON THE MARKET
Thanks to the internet and the amount of information available to home buyers on Long Beach Island, the correct listing price for a home is now more important than ever. Buyer’s are very aware of a home that is over priced, priced correctly or under priced in the LBI real estate market. Incorrectly pricing a home will have one of two outcomes. If a house is overpriced, it will spend an unnecessary amount of time on the market and end up selling for less money (to say nothing of the added costs of ownership). If a home is under priced, it will attract a great deal of attention and possibly lead to a bidding war…it can also lead to a lower sales price if the property is priced too far under market value. The key is to price the house correctly, based on both recent sales and the current inventory of LBI homes. The correct Long Beach Island listing price will create a favorable days on the market and lead to a higher net sales price.
BUYER CONCERNS IN THE LBI REAL ESTATE MARKET
Buying a house on Long Beach Island is an investment. For some, the investment could be purely financial with a buyer looking to turn the home around and sell it for a profit. For some, the investment in emotional in trying to create family memories at the Jersey Shore. For most, buying a house on Long Beach Island is a combination of both factors! Regardless of the motivation, buying a home in the LBI real estate market requires careful planning and Buyer Concerns in the LBI Real Estate Market should be fully addressed before making an purchase.
BUSINESSES FOR SALE ON LONG BEACH ISLAND
Commercial real estate on Long Beach Island offers some great opportunities, but also requires a careful understanding of the current market trends. Of the different areas of the LBI real estate market, such as single family homes, condos and vacant land, commercial real estate tends to show the least amount of activity as the pool of buyers is smaller than it is for the residential areas of the market. Commercial real estate can however offer a unique chance to live and work at the beach and for many, is the realization of a wonderful dream. Commercial real estate can be divided into two categories: the physical real estate including the land and the building and the business currently in operation (if any). Placing a value on each part takes time and an understanding of businesses for sale on Long Beach Island.
LONG BEACH ISLAND REAL ESTATE FLOOD INSURANCE COSTS
When Hurricane Sandy made landfall in New Jersey at the end of October 2012, many things changed. Large areas of coastal New Jersey, including Long Beach Island, were damaged, and that damage has taken a long time to repair. Thankfully, most of the shore areas were open for Summer 2013 and Summer 2014 is looking to be a very busy season. One positive impact of Hurricane Sandy is the amount of redevelopment and improvement being made to all the shore towns in New Jersey. With new construction taking place seemingly on every street and many older homes being raised, many home buyers in the LBI real estate market have been asking what is the cost of flood insurance for an elevated home on Long Beach Island.
LONG BEACH ISLAND LUXURY HOME SALES
While it can be said that the entire LBI real estate market is a luxury home market, it is generally accepted that homes priced over $2,000,000 are the true luxury buys on Long Beach Island. The majority of these homes will be oceanfront or bayfront or at least with an outstanding view of the water. While there are some tear downs that sell in this price range, the majority of real estate transactions over $2,000,000 are for end user properties. Long Beach Island Luxury Home Sales are an important trend to follow and they can be a good tell for the rest of the real estate market on Long Beach Island.
LONG BEACH ISLAND POCKET LISTINGS
Pocket listings are a highly publicized area of a real estate market. Many national TV shows talk about pocket listings and how they can be a great opportunity for a buyer to purchase a home before it hits the market. This can be true, but only under certain circumstances. Long Beach Island Pocket Listings are not very common since the LBI real estate market is primarily a second home market, but there are circumstances by which a seller would consider a pocket listing.
WHY POCKET LISTING HARM LBI REAL ESTATE SELLERS
When selling a home in the LBI real estate market, there are two important concepts that cannot be overlooked. They are pricing and market exposure. While pricing is the most important aspect, marketing and exposure to LBI real estate home buyers is a close second. It is the lack of exposure aFSBO or pocket listing experiences that is the main reason Why Pocket Listing Harm LBI Real Estate Sellers on Long Beach Island.
LBI REAL ESTATE LANDLORD TIPS
The LBI real estate market can be an excellent area of investment. Home prices on Long Beach Island are down from the peak of the market in 2006, but have remained generally stable. Even in the wake of Hurricane Sandy, the area rebounded quickly and the real estate market remained strong. One of the core reasons for the stability seen in the LBI real estate market has to do with summer rentals. Renting a house on Long Beach Island can generate tremendous income. This additional income can help to cover expenses, and even eliminate the need to short sell the house (another reason for the market’s stability). When becoming a landlord on LBI, there are some basic things that can be done to improve cash flow and the overall experience of the house.
BUSINESSES FOR SALE ON LONG BEACH ISLAND
Commercial real estate on Long Beach Island offers some great opportunities, but also requires a careful understanding of the current market trends. Of the different areas of the LBI real estate market, such as single family homes, condos and vacant land, commercial real estate tends to show the least amount of activity as the pool of buyers is smaller than it is for the residential areas of the market. Commercial real estate can however offer a unique chance to live and work at the beach and for many, is the realization of a wonderful dream. Commercial real estate can be divided into two categories: the physical real estate including the land and the building and the business currently in operation (if any). Placing a value on each part takes time and an understanding of businesses for sale on Long Beach Island.
LONG BEACH ISLAND REAL ESTATE FLOOD INSURANCE COSTS
When Hurricane Sandy made landfall in New Jersey at the end of October 2012, many things changed. Large areas of coastal New Jersey, including Long Beach Island, were damaged, and that damage has taken a long time to repair. Thankfully, most of the shore areas were open for Summer 2013 and Summer 2014 is looking to be a very busy season. One positive impact of Hurricane Sandyis the amount of redevelopment and improvement being made to all the shore towns in New Jersey. With new construction taking place seemingly on every street and many older homes being raised, many home buyers in the LBI real estate market have been asking what is the cost of flood insurance for an elevated home on Long Beach Island.
BUYER CONCERNS IN THE LBI REAL ESTATE MARKET
Buying a house on Long Beach Island is an investment. For some, the investment could be purely financial with a buyer looking to turn the home around and sell it for a profit. For some, the investment in emotional in trying to create family memories at the Jersey Shore. For most, buying a house on Long Beach Island is a combination of both factors! Regardless of the motivation, buying a home in the LBI real estate market requires careful planning and Buyer Concerns in the LBI Real Estate Market should be fully addressed before making an purchase.
COMMON PROBLEMS WITH HOMES IN THE LBI REAL ESTATE MARKET
Buying a home on Long Beach Island is a major investment! When looking at homes, it is important to understand not only the current market trends, but also the common problems with homes in the LBI real estate market. Most buyers come to LBI from Northern New Jersey, New York and Pennsylvania. These areas are generally located far away from the water and can create a problem for buyers who may not know the environment on Long Beach Island. While a seller’s disclosure and a home inspection should uncover most problems, by knowing what to look for can avoid engaging a property that may not be worth buying!
SECOND WIND FOR THE SECOND HOME MARKET
The real estate market on Long Beach Island consists mainly of second homes. Long Beach Island itself sees an increase from about 10,000 year round residents to over 150,000 or more during the summer season. With such a large portion of the economy focused on tourism, it is easy to see why following trends in the second home market is important for the LBI real estate market as a whole. October 2012 witnessed the impact of Hurricane Sandy and while the storm caused major damage, it also created many opportunities. In short, Hurricane Sandy created a Second Wind For the Second Home Market on Long Beach Island New Jersey.
SHAKING THE SANDY BLUES
Hurricane Sandy caused massive damage to Long Beach Island and the most of the New Jersey coastline. When Sandy made landfall at the end of October 2012, Long Beach Island had not sustained a major storm impact in over 50 years. While there have been many storms over the years (1992, Hurricane Irene, etc), these storms were far smaller than Hurricane Sandy and their damage was much less by comparison. Luckily for LBI, most of the damage was repaired for Summer 2013 and it was a fairly “normal” summer. While rentals and overall traffic was lower, there was a fun and vibrant summer…and 2014 looks to be even better! Right now, Shaking the Sandy Blues is the most important factor in restoring tourism to the area.
LBI YEAR ROUND RENTALS
Long Beach Island New Jersey is an area of mostly summer homes. The year round population of around 10,000 swells to around 150,000 or more during the busy summer season. While most of the homes bought on Long Beach Island are vacation properties, there are also a number of year round real estate transactions. If buying a year round home on LBI is out of the question, then looking at LBI Year Round Rentals is the next step. While the inventory of year round rentals on Long Beach Island is not very high, there are properties available for rent.