LBI Residential Real Estate Market Update: January vs. February 2025
The Long Beach Island (LBI) real estate market saw some significant shifts from January to February 2025. Understanding these changes can help buyers and sellers make informed decisions in an evolving market.
Key Market Comparisons
Total Sales
January 2025: 30 properties sold
February 2025: 19 properties sold
The number of homes sold decreased by 36.7% from January to February, indicating a potential slowdown in buyer activity or longer decision-making periods. This possibly can be attributed to large factors such as; economic uncertainty, presidential office change/policy revisions, global factors, and more. Beyond these larger trends, several smaller factors may have contributed to February's decline in sales. Seasonal market trends often make winter a slower time for real estate on Long Beach Island, as buyers wait for the busier spring season. Harsh winter weather, financial caution following holiday spending, and limited inventory in high-demand price ranges may have also played a role. Additionally, minor fluctuations in mortgage rates, buyer fatigue from a competitive 2024 market, and potential delays in closings from January may have further slowed transaction activity.
Average Sale Price
January 2025: $2,168,233
February 2025: $2,180,000
Despite fewer sales, the average sale price remained strong, showing a slight increase of 0.5%, which suggests continued demand for higher-value properties.
New Listings
January 2025: 36 new listings
February 2025: 57 new listings
New inventory surged by 58.3% in February compared to January. This influx of listings could provide more options for buyers but may also lead to increased competition among sellers. Overall, this is positive to see!
Sales-to-List-Price Ratio
• January 2025: 96.8%
• February 2025: 95.5%
The sales-to-list-price ratio decreased slightly from January to February, indicating that homes sold for a marginally lower percentage of their asking prices. This shift suggests a slight softening in the market, providing buyers with more negotiation leverage. Looking at other factors, such as CDOM, one could also conclude that the homes sitting longer may have offered more negotiating leverage for buyers, resulting in a lowering in the S-L-P ratio.
Median Cumulative Days on Market (CDOM)
• January 2025: 34 days
• February 2025: 85 days
The median CDOM increased significantly in February, with homes taking longer to sell compared to January. This change may indicate a cooling market or an adjustment period as buyers evaluate the increased inventory.
Total Inventory
• January 2025: 138 homes
• February 2025: 154 homes
The total number of homes on the market rose by 11.6% from January to February, offering buyers more choices and potentially shifting the market toward more balanced conditions.
Potential Market Influences
As mentioned above, the decrease in sales from January to February 2025 may be influenced by broader economic factors and recent political changes, with buyers assessing potential policy shifts affecting taxes, interest rates, and economic stability. Additionally, seasonal trends often make winter a slower period for LBI real estate, as buyers wait for the busier spring market. Harsh weather, post-holiday financial caution, limited inventory in high-demand price ranges, and minor mortgage rate fluctuations may have also contributed to the slowdown. Buyer fatigue from 2024’s competitive market and potential delays in closings from January could have further impacted February’s sales figures.
What This Means for Buyers and Sellers
For buyers, the increase in listings and steady sale prices mean more opportunities and possibly better negotiating power. The sales-to-list ratio suggests that sellers are willing to negotiate but still expect competitive offers.
For sellers, while home prices remain strong, the drop in sales and increase in market inventory means proper pricing and presentation are critical. With more competition, strategic marketing and accurate pricing will be essential to attract buyers.
Looking Ahead
As we move closer to spring, traditionally a busier season for real estate, it will be interesting to see whether buyer activity picks up to match the rise in inventory. Staying informed on market trends is crucial for anyone considering buying or selling on LBI.
If you have questions about how these trends impact your real estate goals, feel free to reach out!
Source: Bright MLS® Residential, Multi-family, and Land sales data 2025
