May 2024 Long Beach Island Market Update
The spring market on Long Beach Island historically is one of the busiest times of the year for home sales, new listings, renovations, new build completions, and much more. As we are approaching summer, it is clear that activity has picked up significantly from the slower winter months. 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 point to a healthy market despite the struggle of low inventory.
Sales Performance:
The month of May witnessed 32 property sales on Long Beach Island, slightly down from 35 sales in April. This slight dip in sales volume suggests a marginal, but not substantial, cooling in buyer activity, which could be attributed to various personal and economic factors.
Inventory Levels:
Active listings in May stood at 162 properties, down from 173 in April. This continued struggle to consistently add more listings to the market highlights the ongoing inventory challenges. However, the number of new listings in May increased to 52, compared to 43 in April. This increase in new listings is a positive sign, injecting fresh inventory into the market and potentially easing some of the pressure on buyers. As I am actively seeing with my own clients, if a property is priced competitively, it will see numerous offers in a short time frame after listing. It is important to identify these properties early, put your best foot forward, and be prepared to adjust your position if necessary. Buyer demand is still headstrong and is being emphasized with the island-wide low inventory.
Average Sold Price:
The average sold price for properties on Long Beach Island in May 2024 reached an impressive $2,822,179, marginally higher than April's average of about $2,510,584. This increase underscores the continued appeal of Long Beach Island's real estate to high-end buyers. The higher average price also indicates that more expensive properties are being sold, reflecting a robust interest in the island’s luxury market.
Days on Market:
The median cumulative days on market (CDOM) for properties in May was 105 days, compared to 74 days in April. This increase in CDOM suggests that properties are taking longer to sell, which could be indicative of buyers taking more time to make purchasing decisions or the higher-priced properties sitting longer on the market.
New Listings:
During May, 52 new listings entered the market on Long Beach Island, up from 43 in April. This influx of fresh inventory is encouraging and vital for addressing the ongoing inventory shortage. The trend of new listings outpacing sales is crucial for gradually rebuilding the market's inventory levels to pre-COVID numbers. While a high absorption rate is in general a positive sign in real estate, at current levels, balance is key to afford buyers and sellers fair and equal opportunities.
Sales-to-List Ratio:
The sales-to-list ratio in May stood at 97.3%, slightly higher than April's 96.8%. This metric indicates strong market competitiveness, with homes selling closer to their listing prices. The slight increase suggests that sellers are pricing their homes more accurately, and buyers are willing to meet these prices. As mentioned previously, homes priced competitively are seeing more offers, ultimately resulting in higher sales prices relative to listing price.
In Summary:
The real estate market on Long Beach Island in May 2024 shows resilience, with some indicators pointing to a strong luxury market and an increase in new listings. However, the slight decrease in sales and longer days on market highlight some challenges, mostly as a result of inventory levels. As we navigate the current dynamic landscape of real estate, staying informed, prepared, and proactive remains paramount for achieving success in today's market.
Whether you're considering buying, selling, or investing, leveraging the insights learned from market data can empower you to make informed decisions and navigate the real estate landscape with confidence. As always, I am a phone call, text, or email away if you have any questions or need clarification!
