Long Beach Island January Real Estate Market Update

The LBI Market in 5 Stats

In my monthly video, The LBI Market in 5 Stats, I break down:
• Median sale price
• Number of closed sales
• Days on market
• New listings
• Price reductions

These numbers tell the story behind the headlines and provide context that raw data alone often misses.

January on Long Beach Island delivered an interesting dynamic. Multiple cold fronts and a rare snowstorm kept many sellers on the sidelines, but buyer activity never slowed.

Inventory remained near all time lows, yet demand stayed strong, creating a market that leaned even more competitive than expected for the middle of winter.

As of the end of January, there were 80 active listings across Long Beach Island, while 30 properties were pending or under contract, a clear sign that a meaningful portion of available inventory is already spoken for.

January Market Snapshot

Compared to last January, the market felt noticeably more buyer driven, not because buyers had leverage, but because serious buyers were the only ones left. The snow and cold weather delayed new listings that typically follow the holiday slowdown, tightening supply even further.

Only 21 new listings came to market in January, well below what we normally expect after the holidays. Weather clearly played a role, reinforcing seller pricing power across most segments of the market.

The average closed price in January was $2,393,720, underscoring how strong values remain even during the slowest time of year.

Buyer Activity on LBI in January

One of the biggest takeaways from January was the quality of buyers in the market.

We saw a healthy mix of:
• End users looking for a long term beach home
• Cash buyers
• Investors focused on rebuilding

Nearly half of buyers are paying cash, which continues to remove financing friction and keeps competition strong for well located properties.

Buyers are extremely location focused right now. Many have narrowed their search to specific towns, neighborhoods, or even individual blocks. When the right property appears in those zones, activity moves quickly.

The biggest hesitation I continue to hear is pricing. High values have kept less prepared buyers on the sidelines, but motivated and financially ready buyers are still moving forward confidently.

Inventory Remains Extremely Tight

Inventory on Long Beach Island remains as tight as ever and is still hovering near all time lows.

Homes that performed best in January were:
• Turnkey properties ready for immediate use
• Homes priced at land value for redevelopment

What has struggled are properties that fall into the middle ground. Homes that need substantial work but are not priced as tear downs have been sitting, especially when pricing does not reflect renovation costs accurately.

Seller pricing continues to be a mixed bag. Well advised sellers are pricing realistically and seeing strong results. Others remain anchored to setting new records which can lead to extended days on market.

Days on Market Tell the Real Story

At first glance, average days on market sat at 68 days, which may seem elevated. However, the range tells a much more accurate story.

• Minimum days on market: 2
• Maximum days on market: 358
• Median days on market: 30

This gap highlights a two speed market. Well priced, desirable homes are often selling in a month or less, while overpriced or compromised properties linger for months and skew the average.

Pricing, Negotiation, and Deal Flow

Despite the winter season, we continued to see multiple offer scenarios.

Homes sold at an average of 95.9 percent of asking price, which is a strong indicator of ongoing demand. Buyer leverage did not improve from the fall. In fact, with inventory shrinking further, leverage arguably decreased.

Town and Section Spotlight

South Beach Haven stood out as one of the strongest sections in January.

This is an area where listings are rare due to high demand and low turnover. In total, several transactions occurred in a section that typically sees very little activity, highlighting how desirable it remains.

Buyers continued to focus on familiar drivers like proximity, access, and neighborhood feel. One growing topic of conversation has been beach width, as recent storms have temporarily reduced sand in some areas.

Financing and Interest Rates

Interest rates had little impact on January buyer behavior.

Nearly half of buyers are paying all cash, while others are using delayed financing or conventional loan products. Sellers have not shown increased willingness to offer concessions due to rates, largely because demand continues to outpace supply.

A January Reality Only LBI Buyers Understand

January brought a significant winter storm with snow and ice, something that directly affected listing activity. Slippery driveways, frozen plumbing concerns, and extreme wind chills caused many sellers to wait rather than rush a winter listing.

One thing I explain to nearly every buyer is that the spring market on LBI starts earlier than most expect. Activity often begins to ramp up in February, not March, making early positioning critical.

What January Tells Us About the Spring Market

January reinforced that pricing power remains in the seller’s favor. Competition is limited, demand is present, and well priced homes are moving quickly.

Buyer urgency is still very real. Many are searching for a forever beach house and are prepared to act when the right opportunity arises.

Advice for Buyers

If you see the right property, move now. Waiting only makes sense if you are flexible on location and condition and willing to sort through more inventory as it comes online.

Advice for Sellers

Listing before the full wave of spring inventory hits can be a strategic advantage. Demand is already there. Make sure systems like plumbing and heating are fully operational after recent cold fronts, and price with current market data rather than past peaks.