June 2024 Market Update
The real estate market on Long Beach Island continues to evolve as we move through the summer. Historically, summer sees an uptick in market activity, and June has been no exception. Below are some important figures I tend to watch closely to provide an accurate pulse of how the market is performing. As you will see, these statistics reflect some interesting shifts from May.
Sales Performance:
June witnessed 27 property sales on Long Beach Island, down from 32 sales in May. This decline in sales volume indicates a modest cooling in buyer activity, which may be influenced by various personal and economic factors. Some of these factors include summer vacations, traveling, mortgage rates, owners renting their properties, and more.
Inventory Levels:
Active listings in June stood at 166 properties, slightly up from 162 in May. This increase in active listings suggests a slight improvement in overall inventory levels. The uptick in inventory may only prove true due to the summer season moving a bit slower than the spring. However, the number of new listings in June decreased to 46, compared to 52 in May. While the rise in total inventory is positive, the drop in new listings highlights ongoing challenges in consistently adding fresh properties to the market.
Average Sold Price:
The average sold price for properties on Long Beach Island in June was $2,003,370, significantly lower than May's average of $2,822,179. This decrease points to a shift away from higher-end property sales in combination with a slight downturn in the number of sales, possibly reflecting changes in buyer preferences or market conditions.
Days on Market:
The median cumulative days on market (CDOM) for properties in June was 48 days, down from 105 days in May. This notable decrease in CDOM suggests that properties are selling much faster, which could be due to more competitive pricing or increased buyer urgency. This decrease may also point to the fact that many of the homes sold in May were sitting a bit longer on market. This is typical due to the timing of buyers looking to frantically purchase before summer officially begins. Those who have been waiting likely decided to buy a home (whether it is perfect or not) so they do not miss out on another season. Due to the low inventory and high demand, some buyers may have compromised on price or property condition. Statistically, the homes which sit on market past a month on LBI are either over-priced or in poor condition.
New Listings:
In June, 46 new listings entered the market on Long Beach Island, down from 52 in May. While this is a decrease, the steady influx of new listings remains crucial for addressing the ongoing inventory shortage. Despite the challenges, new listings continue to provide fresh opportunities for buyers.
Sales-to-List Ratio:
The sales-to-list ratio in June stood at 97%, slightly down from May's 97.3%. This small decrease indicates that homes are still selling close to their listing prices, maintaining strong market competitiveness. Sellers are generally pricing their homes accurately, and buyers are willing to meet these prices.
In Summary:
The real estate market on Long Beach Island in June 2024 shows some shifts compared to May. The decrease in sales and new listings, along with the significant drop in average sold price, indicate changing market dynamics. However, the faster sales and stable sales-to-list ratio reflect sustained competitiveness.
As we continue to navigate the current dynamic landscape of real estate, staying informed, prepared, and proactive remains critical for achieving success in today's market. Whether you're considering buying, selling, or investing, leveraging insights from market data can empower you to make informed decisions and navigate the real estate landscape with confidence. The numbers don’t lie! As always, I am a phone call, text, or email away if you have any questions or need clarification!
Source: Bright MLS ® 2024. Single-family, Multi-family, and Land sale statistics for all of LBI
