July 2024 LBI Market Update
Sales Performance:
May: 32 property sales
June: 27 property sales
July: 36 property sales
Observation: After a decline in June, the number of sales rebounded significantly in July, surpassing both May and June figures. This increase may suggest a renewed interest or a culmination of transactions delayed from the previous months.
Inventory Levels:
May: 162 active listings
June: 166 active listings
July: 169 active listings
Observation: The inventory has been steadily increasing each month, indicating a gradual improvement in the number of available properties, but not enough to balance the inventory. This trend might help ease the pressure on buyers who have been facing limited options.
Average Sold Price:
May: $2,822,179
June: $2,003,370
July: $2,006,514
Observation: After a significant drop from May to June, the average sold price remained relatively stable in July. This suggests that while there was a shift away from higher-end property sales in June, July saw a stabilization in the market trending similar to the previous month in terms of price range of homes sold.
Days on Market (CDOM):
May: 105 days
June: 48 days
July: 39 days
Observation: The median cumulative days on market decreased substantially from May to June and continued to decrease in July. Properties are selling faster, which could be due to competitive pricing, increased buyer urgency, the offloading of stale properties in the beginning of the summer, or a combination of all three.
New Listings:
May: 52 new listings
June: 46 new listings
July: 60 new listings
Observation: After a decrease in June, the number of new listings increased again in July. This influx of new listings could provide fresh opportunities for buyers and help address the inventory shortage. Of course, the injection of new inventory has also increased the number of sales displaying the continued elevated demand for properties on Long Beach Island. New inventory is great; however, high absorption rates hinder inventory levels rising long term.
Sales-to-List Ratio:
May: 97.3%
June: 97%
July: 96.6%
Observation: The sales-to-list ratio has been slightly decreasing each month, indicating a slight softening in how close sale prices are to listing prices. However, homes are still selling close to their listing prices, maintaining strong market competitiveness.
Summary:
Sales: Decreased in June but rebounded strongly in July.
Inventory: Gradually increasing, providing more options for buyers.
Average Sold Price: Stabilized in July after a significant drop in June. This is likely just due to higher-end homes selling more slowly compared to May.
Days on Market: Continues to decrease, indicating faster sales and high competition.
New Listings: Increased significantly in July, offering new opportunities for buyers.
Sales-to-List Ratio: Slight decrease, but still strong.
Conclusion:
The real estate market on Long Beach Island showed a dynamic shift from May to July. June experienced a cooling period, with fewer sales and new listings, along with a notable drop in the average sold price. However, July saw a resurgence in market activity with increased sales, new listings, and stable average sold prices. The decreasing days on market and strong sales-to-list ratios reflect continued competitiveness in the market.
Staying informed with these insights can empower buyers, sellers, and investors to make well-informed decisions and navigate the real estate landscape with confidence.
If you have any questions or need further clarification, feel free to reach out by phone, text, or email!
Source: Bright MLS ® 2024. Single-family, Multi-family, and Land sale statistics for all of LBI
