Statistics:

• End Inventory: 175 properties

• Number of homes sold for the month: 30 (down 23% month-over-month)

• Number of new listings: 26 (down 41% month-over-month)

• Average Sales Price: $1,745,740 (down 6% month-over-month)

• Average cumulative days on market currently: 82 days

Summary:

The real estate market on Long Beach Island for the month of November did not have the outcome I was hoping for in my last update, however, it was no surprise. Historically, November is a bit of a slower month due to numerous reasons such as; the colder climate, focus on the holidays, crammed business schedules, family gatherings, sports/school, economic factors, and more. As a result, November 2023 ended with only 30 properties sold, showing a decrease of about 23% month-over-month. At the same time, only 26 new properties were listed. Since the sales-to-new-listing ratio (SNLR) was greater than 100% for the month, this typically indicates we are still in a seller’s market. In times with struggling inventory (currently), high absorption of new listings makes it increasingly difficult to see any growth in this field, in turn making a purchase even more arduous to a buyer. On the other hand, even with low inventory, which typically drives prices up, the average sales price for the month was $1,745,740, down about 6% month-over-month and almost 27% when compared to the average sales price over this past summer. After taking a deep dive into why this has dropped, it can be most attributed to the higher end homes selling at a bit of a slower pace, bringing down the average sales price. It is important to understand that the average price dropped due to slower high-end sales and is not accredited to home prices overall dropping. Unfortunately, if you are a buyer waiting for the prices to go down on the island, this most likely will not occur. In fact, the overall average price for the year 2023 is on pace to increase by about 15% when compared to 2022. In summary, the island realized a bit of a slow November as expected. Nonetheless, the market is still seeing an active pool of buyers constantly searching for their dream home. With the addition of more listings typically coming on in the next few months following the holidays, the market should start to make progress on the return to more “normal” inventory levels. Time will tell!

*All statistics derived from single-family, multi-family, and land residential activity on Long Beach Island, NJ via Bright MLS®.*