August 2017 sales on LBI
It was just one year ago when the LBI market show signs of changing from a buyer’s market to a sellers market, and we have not looked back since. August 2016 bested the halcyon days of the turn of the decade, with sales topping all years with the exception of 2004. Unit sales in 2016 were just one sale short of 2004, and were better than every year since 2000……. We just set a new unit sales record for modern times on LBI. It was only one sale over the previous record, but a record setter none-the-less. Dollar sales came in right on top of the sales from August 2016, and homes in the pending sale category remain very strong. For two months in a row, the average sale of a single family home on LBI came in over $1m.
All types of housing showed strength, with condos doing well along with sales of vacant land. There was even one commercial sale recorded. August has traditionally been a slower month for closings, but the normal patterns seem to be changing with this strong market.
So how is all of this effecting pricing? Personally, I have lost two sales last month in a bidding situation, with one selling over list, and the other selling to a friend of a neighbor who wanted in. New construction oceanfront pricing has been absolutely nuts for a while now, and I suspect that we will see price increases in a number of sectors. One of the homes listed in the fab 4 had such a strong response when listed that the seller raised the price by 10% and rejected all the offers that were based on the introductory list price.
All of this being said, there is still a percentage of the inventory that is sitting. Bayfront homes are not seeing appreciation and are selling slowly. If a home is priced on the high side, it can sit, even in the current market, as inventory has burned down, but with the recent spike in sales, more inventory is coming on, keeping certain segments of the market from selling quickly and enjoying price increases. If someone is looking for an oceanside house at a reasonable price, the pickings are slim.
Advice to those looking to buy, work hard and put in the time to understand the market and jump when you see a good value. For sellers, don’t get greedy. Price at the high end of the market, but don’t stretch it, or you may miss an opportunity.