As the real estate market continues to adjust, it's crucial for industry professionals and consumers alike to stay in tune with the latest trends and shifts. In this article, we'll dive into a comparative analysis of February 2024 vs. February 2023, examining key metrics such as number of active listings, sales, average sales price, average CDOM (Cumulative Days on Market), new listings, and sales-to-list-price ratio. By analyzing these statistics, we can gain valuable insights into the state of the real estate market and identify any notable changes over the course of a year.

Active Listings:

• At the end of February 2023, there were 237 active listings compared to 172 in February 2024. The decline in active listings indicates a tightening of inventory, leading to increased competition among buyers along with stable/steadily increasing prices.

Sales:

• February 2023 saw 28 sales, whereas February 2024 recorded 22 sales. Despite a decrease in active listings, the number of sales was relatively similar year-over-year. This could be attributed to various factors such as economic conditions, buyer preferences, consistent demand despite low inventory, and more.

Average Sales Price:

• The average sales price in February 2023 was $1,793,786, slightly higher than the average sales price of $1,776,024 in February 2024. While there was a slight decrease in the average sales price year-over-year, it's essential to consider factors such as property type, location, and market demand when interpreting this data. As you may be aware, prices on LBI can vary greatly, so tracking what homes sold during the month can give some insight on whether or not the average price is truly dropping. Based on my observations, the average price is not dropping. The drop in price can be attributed to the higher-end homes selling at a bit of a slower pace. With sample sizes like last month of only 22 homes, one big sale (or lack thereof) can impact this metric greatly. 

CDOM (Cumulative Days on Market):

• One notable change between February 2023 and February 2024 is the increase in CDOM. In February 2023, the average CDOM was 56 days, whereas in February 2024, it rose to 92 days. This indicates that properties took longer to sell in 2024 compared to the previous year, suggesting a potential shift in market dynamics, personal financing issues, mortgage rate increases, buyer behavior, and more.

New Listings:

• February 2023 saw 45 new listings, while February 2024 recorded 54 new listings. The rise in new listings could indicate a renewed interest from sellers in entering the market, potentially contributing to a more balanced inventory in the coming months. Fingers crossed!

Sales-to-List-Price Ratio:

• The consistency of the sales to list ratio between February 2023 and February 2024 suggests a level of stability in the real estate market over that one-year period, remaining relatively the same. However, the slight downward trend in the sales-to-list-ratio over the last few months, with a decrease of about 1% on average, indicates a subtle shift in market dynamics. This decline may signal a softening in buyer demand resulting in more negotiations. It also may indicate an increase in inventory relative to the number of sales. This results in a slightly lower percentage of homes selling at or above their listing prices. While a 1% decrease may seem minor, it's essential for both buyers and sellers to take note of these shifts and adjust their strategies accordingly. For buyers, this could mean potentially having more negotiating power and opportunities to secure homes at slightly lower prices. Conversely, sellers may need to be mindful of pricing their properties competitively to attract buyers in a market where the sales-to-list ratio is trending downward. Overall, staying informed about these subtle changes in the sales-to-list ratio can help both buyers and sellers make informed decisions in the ever-evolving real estate landscape.

Conclusion:

In conclusion, the comparative analysis of February 2024 vs. February 2023 highlights several key trends in the real estate market. While there was a decrease in active listings and sales, accompanied by a slight decline in the average sales price, there was an increase in CDOM and new listings. These shifts indicate a dynamic and evolving market landscape, influenced by various economic, social, and environmental factors. As we navigate through these changes, it's essential for industry professionals and consumers to remain vigilant and adaptable to ensure success in the ever-changing real estate market on Long Beach Island and the surrounding areas.

Source: Bright MLS®, Residential, Multi-family, and Land data.