Buying a House on Long Beach Islnad

Each town on Long Beach Island offers something different, be it the peace and quiet of Barnegat Light, the easy on and off access of Ship Bottom, or the non-stop fun of Beach Haven. Before investing in a LBI real estate transaction, you should learn about the different real estate markets of Long Beach Island.

LBI has different factors which play into determining the property values of that area. Generally speaking, home prices are higher on the north end of LBI in the areas of Loveladies and North Beach, and less expensive in the areas of Ship Bottom, located near the bridge, or Holgate at the south end of the island. 

The LBI real estate market is made up of several different categories which include residential sales (single family homes, condos, etc), multi-family homes (duplexes and triplexes), and commercial real estate.

The real estate market has been improving. Typically, each month results in 25-30 single family homes being sold with an average sale price of about $1,000,000.  Homes spend about 100-150 days on the market and sell for 92%-96% of their listing price.

Hurricane Sandy had a major impact on the LBI area and the LBI real estate market. It is important to check for storm damage when buying a house, as well as the current and future flood insurance rates.

There is much to know and understand about each type of property in the LBI real estate market. Generally speaking, single family homes will be the most stable investment, provided they are in a good location and on a good lot size. Condos offer affordability, but lower appreciation rates. Short sales are few and far between on LBI and they are often NOT the best investment in the market. The best investment will usually be the purchase of a tear down or storm damaged home, and then building a new home. It is common for these finished homes to beat the market by about 20%.

 

 

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