LBI Real Estate Market Update
February Recap
Demand remained high with 36 properties going under contract—the highest since October. Despite strong buying activity, total inventory increased month over month due to a seasonal rise in new listings (52) , as sellers aim to capitalize on steady demand and low inventory. However, inventory is aging, with average days on market rising to 96 and median days to 85, compared to 67 and 39 in September. Buyers had more leverage in negotiations, as the average close-to-list price ratio dropped to 95.7%, the lowest since last February, creating opportunities to negotiate on older listings. That said, this reflects overpriced inventory rather than a market slowdown, as the average sale price per square foot remains near an all-time high at $1,021.
March Outlook
Buyers
March has historically been the busiest spring month for new listings post-COVID while also being a below-average month for sales. If this trend continues, inventory could rise back into the 120s, providing a buffer in case of a further increase in already steady demand. With 87 properties on the market for two months or longer, buyers have opportunities to negotiate on select listings. However, not all aging properties allow for negotiation—some can still attract multiple offers even after months on the market. As a result, accurately valuing a property and assessing key factors are becoming increasingly important when developing a bidding strategy.
Sellers
Buyers are setting clear expectations on market value, particularly for homes that aren’t in the highest demand. As a result, initial pricing and timing are becoming increasingly crucial, with the first month on the market being the most critical window to attract buyers and maximize interest. With a potential increase in new listings, sellers must decide whether to hold firm on their current price or reduce it to stay competitive against newer, more appropriately priced properties.
