January 2026
Long Beach Island • Real Estate Review • Market Outlook
December Market Recap
A Quiet Close to a Historic Year
December closed quietly on Long Beach Island, with just 15 homes going under contract — marking the lowest monthly total since December 2022. While year-end slowdowns are typical, this softer finish highlighted just how constrained the market has become as inventory remains historically tight.
Despite the slow close, 2025 will be remembered as one of the most remarkable years in LBI real estate history. We saw all-time high sale prices, some of the lowest average days on market ever recorded, and inventory levels that repeatedly pushed into record-low territory.
As we enter 2026, the market sits at a critical crossroads. The coming year will be a pivotal test of whether inventory can recover toward the mid-100 home range — or if double-digit inventory levels become the new long-term reality.
What’s clear is that LBI enters 2026 in what is arguably the most competitive market environment of all time. Limited supply, persistent demand, and elevated pricing continue to define conditions for both buyers and sellers.
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Discover where the LBI market and mortgage rates are headed — and don’t miss our favorite active homes of the week in our latest market outlook.
See Our Favorite
Properties
Discover where the LBI market and mortgage rates are headed — and don’t miss our favorite active homes of the week in our latest market outlook.
Buyer Market Outlook
For buyers, the new year is already presenting early opportunities. In just the first 15 days of January, 18 homes have hit the market — putting us on pace to match last January’s total of 36 new listings. Roughly one-third of these homes were expired listings from 2025 that have since been relisted. While overall inventory remains near historic lows, buyers should expect many new listings to come to market optimistically priced, as seller expectations remain understandably high. We anticipate additional listings will continue to trickle onto the market throughout January, gradually adding options for buyers.
Entering the year with 88 total homes, near all-time lows, the market appears to be approaching a potential inflection point. The fall market was notably flat for the first time in five years, raising the question of whether the spring market will provide the boost the market needs — or if another season stalls, leaving inventory stuck at these record-low levels.
From an activity standpoint, the next couple of months will depend heavily on weekend weather. The majority of buying activity occurs on weekends, making weather a key determinant of how quickly homes are shown and sold. Storms or harsh conditions can deter buyers traveling longer distances, temporarily slowing demand. However, these weekends can also present opportunities for buyers who are local — or willing to make the trek — by reducing competition and improving negotiating leverage.
Last year’s mild winter led to unusually strong early-season activity, with February 2025 producing the highest number of contracts (45) of the year. In more typical winters, buyer momentum doesn’t meaningfully accelerate until the weather breaks, pushing peak transaction volume later into the spring.
If prior seasonal trends are any indication, we likely won’t begin to see meaningful inventory growth until March, when historically new listings begin to outpace contracted properties. Until then, buyers should expect continued supply constraints and heightened competition across most segments of the market.
Seller Market Outlook
From a seller’s standpoint, now presents a strong opportunity to list. Sellers are able to capture buyers who are early to the 2026 market while also positioning their homes in front of the upcoming wave of spring demand. Through January 15th, 7 properties have gone under contract, reflecting steady early-season activity in a traditionally slower period.
Looking ahead, there is a possibility the market begins shifting back toward more pre-COVID seasonal trends, when Long Beach Island functioned primarily as a spring-driven market. With inventory still historically low, competition among buyers remains elevated even during winter months.
Sellers of waterfront homes and properties priced above the traditional starter-home range face less concern around aging listings, as supply remains especially tight in these segments. Limited options continue to support pricing strength and sustained buyer interest.
In today’s low-inventory environment, sellers are operating with very limited comparable sales. With fewer true comps available — and some existing listings priced unrealistically — this period may represent one of the better windows to list all year for well-positioned properties. Strategic pricing and strong presentation become even more important when supply is constrained.
Sellers priced under $2 million will need to be more aggressive with pricing. This remains the most competitive and balanced segment of the market, where homes that sit are more likely to be passed over in favor of fresh spring listings as new inventory comes online.
Last year’s data reinforces the advantage of early positioning, with February 2025 producing the highest number of closings of the year. Sellers who enter the market ahead of peak seasonal demand are often better positioned to capture motivated buyers before inventory likely expands.
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