January 2024 Market Update

Inventory:

- December 2023: Inventory ended with 158 homes for sale.

- January 2024: Inventory increased slightly to 162 listings.

The slight increase in inventory from December 2023 to January 2024 suggests a potentially trending uptick in available properties. However, it's important to remember that the inventory remains relatively low compared to pre-pandemic levels, indicating the ongoing challenge of limited housing supply. It is also crucial to understand that the figure of 158 and 162 homes for sale includes some listings that are not truly active. About 20% of these homes are either actively under contract, in attorney review, have offers, counted twice if listed in more than one category, or are still active due to an agent mistake.

Sales and New Listings:

- December 2023: Closed sales for December were 25, and there were 23 new listings.

- January 2024: Closed sales for January were 20, and there were 42 new listings.

Comparing the two months, January saw more new listings but fewer closed sales. This could suggest that demand is still strong, but the market may need some time to absorb the increased supply. In my eyes, this is actually a positive observation of the market based on current inventory levels. New listings outpacing sales could help replenish the island’s parched supply. The balance between supply and demand is essential for market stability.

Prices:

- December 2023: The average sales price for December 2023 was $1,615,896.

- January 2024: The average sales price for January 2024 was slightly higher sitting right at approximately $1,700,000.

The average sales price increased from December 2023 to January 2024, indicating continued demand and competition in the market.

Overall Assessment:

While the micro real estate market on Long Beach Island is still facing challenges related to low inventory, it's encouraging to see an increase in new listings in January. The market appears to be stable, with prices holding steady and even increasing slightly. The drop in mortgage rates since November may motivate buyers, but the persistent demand/competition, limited housing options, and other economic factors are influencing sellers to hold off listing their homes.

The balance between supply and demand remains critical. As we transition into the second half of winter and early spring, historical patterns suggest more listings will come on the market, potentially helping to alleviate inventory constraints. It's essential to keep an eye on market dynamics, mortgage rates, economic factors, and buyer behavior as they can influence future trends.

What does this mean for you?:

The LBI real estate market, while presenting some challenges, is displaying resilience and signs of stability. Both buyers and sellers are actively participating in the market, and it's crucial to stay informed about changing dynamics.

• If you're a buyer, don't necessarily wait for prices to drop significantly, as this may not happen. Current prices, even with a slightly higher mortgage rate, could still be financially feasible in the long run. If data proves anything, prices will continue to climb.

• Sellers, on the other hand, should consider taking advantage of the current demand and competitive pricing in the market.

In summary, the real estate market in January 2024 leading into February provides opportunities for both buyers and sellers. Your individual circumstances, goals, and timing will ultimately determine the best course of action. Consulting with a knowledgeable real estate professional, like myself, can help you make informed decisions in this dynamic market.