June 2017 sales report, LBI
Once again, a VERY strong month for sales on LBI. While not besting the prior high-water mark set in 2004, June sales were the best in the last decade, measured in units and dollars. The interesting aspect to the strong numbers is that it all took place with 25% less inventory than seen in the prior year. The level of inventory is approaching the low levels that we say in 2003 and 2004, which was a time of sharp price appreciation. Check out the article on national inventory levels on my facebook business page.
The best measure of just how significant the sales increase was comes in a percentage measurement. Dollar sales were up by 52% from June 2016. Sales measured in units were up 21%, so obviously some big ticket sales have been taking place. Out of the 52 single family sales, 21 were sales over $1M. The average sale of a single family home on LBI was $1,211,000 last month. The median sale price of a single family home was $840,000.
Condo sales had a banner month, with 10 sales taking place, out of an inventory of just 66 units. June saw a high number of showings on condo units, and I suspect that we will see the condo sales trend continue. There were five multi-family unit sales that took place from a very low inventory of just 29 units. Commercial sales remained at a low point, with not sales notes in the MLS once again.
I can only speculate as to what the fall market will bring, but with no crazy external factors influencing the market, and low interest rates continuing, we will see the prices moving northward. A large Island lender announced a program to lend with just 10% down…so hold on to your hats. With inventory down, buyers are caught in a bit of a trap. Do they jump now and purchase an acceptable home, given the trends that favor sellers, or do they hold on and hope that the perfect house comes on to the market in the future. The issue with holding out?….there are lots of folks waiting are they are, and homes introduced with strong pricing sell fast, and without significant discount.
The rental market remains strong on LBI, with no official way to measure the business, but with the knowledge that sales remain strong with our agency, even though the shift to owner managed rentals continues to grow. With the 4th of July delivering phenomenal weather to the Island, I am sure the merchants are smiling.