As we move into 2025, the Long Beach Island (LBI) real estate market is already showing interesting shifts compared to the final month of 2024. While some numbers point to a slower start to the year, others suggest a market that remains competitive, particularly for well-positioned properties. Let’s break down how January 2025 compared to December 2024 and what these trends could mean moving forward.

Sales Performance

• January 2025: 30 property sales

• December 2024: 43 property sales

Sales in January declined by about 30% from December. While this might seem like a significant drop, it aligns with typical seasonal trends, as the post-holiday period often sees a temporary slowdown in buyer activity. Many buyers who were eager to close deals before the end of the year completed transactions in December, leaving fewer active buyers at the start of the new year. Additionally, some buyers and sellers are waiting for the typical “spring market” to make their move, as we slug through the first months of the year. However, activity is expected to pick up as we approach spring, when more listings hit the market and buyers return with a fresh outlook.

Inventory Levels

• January 2025: 138 active listings

• December 2024: 142 active listings

Active inventory remained relatively stable, with a slight drop to 138 listings in January. The decrease reflects limited new inventory entering the market, keeping conditions competitive for buyers. With fewer homes available, well-priced properties are likely to continue attracting strong interest, particularly as spring approaches and more inventory is expected to hit the market.

Average Sold Price

• January 2025: $2,168,233

• December 2024: $1,933,233

The average sold price saw a significant increase in January, rising by more than 12% compared to December. This suggests that more high-end homes were sold in the first month of the year, driving the overall price up. While this could indicate renewed interest in the luxury segment, it also highlights the importance of tracking pricing trends beyond a single month to see whether this jump holds steady or fluctuates in the months ahead.

Days on Market (CDOM)

• January 2025: 34 days

• December 2024: 52 days

Homes sold much faster in January than in December, with the median days on market dropping from 52 to just 34 days. This signals strong buyer demand despite the seasonal slowdown in overall sales. Well-priced homes are still moving quickly, reinforcing the importance of strategic pricing and proper marketing to attract serious buyers early in the year.

New Listings

• January 2025: 36 new listings

• December 2024: 20 new listings

New listings rebounded in January, increasing by 80% compared to December. This increase is expected as some sellers who held off during the holidays begin listing their properties at the start of the new year. However, many sellers are still waiting for the typical “spring market,” when buyer activity tends to increase, leading to more competition. For now, the limited inventory still favors sellers who price competitively.

Sales-to-List-Price Ratio

• January 2025: 96.8%

• December 2024: 96.3%

The sales-to-list-price ratio ticked up slightly in January, suggesting that buyers are still willing to pay close to asking prices for the right properties. This indicates a balanced market where neither buyers nor sellers have a significant upper hand, making proper pricing strategies crucial for sellers who want to maximize their sale price.

Conclusion

January 2025 began with some expected seasonal slowdowns but also showed positive momentum in key areas. While the number of sales dipped compared to December, homes sold more quickly, and prices increased—especially in the higher-end segments of the island. The rise in new listings is an encouraging sign for buyers who have been facing limited inventory, though overall availability remains tight.

Many sellers and buyers appear to be waiting for the “spring market,” a time when more listings traditionally come on and buyer activity increases. Until then, the market remains competitive for well-priced properties, and buyers who act early may find opportunities before inventory rises and competition heats up.

As we move deeper into 2025, it will be important to watch how buyer activity responds to evolving economic conditions and whether inventory levels continue to increase heading into the spring market.

For sellers, the market remains favorable for well-positioned properties, especially as buyers continue to act quickly on desirable listings. For buyers, while options are still somewhat limited, the increase in new listings provides fresh opportunities to secure a home before competition intensifies.

Stay tuned for next month’s update as we track the latest shifts in the LBI market.

Source: Bright MLS® Residential, Land, and Multi-family data for all of LBI