LBI Residential Real Estate Market Update: July vs. August 2025
As summer winds down, the Long Beach Island real estate market is showing some noticeable changes. August saw fewer closed sales but a sharp increase in average sale price, along with a jump in new listings and a much longer time on market.
Here’s how August compared to July 2025:
Total Sales
July 2025: 24 properties sold
August 2025: 20 properties sold
Sales dropped by about 17 percent. While the slowdown may seem sharp, it’s important to note that August is typically one of the slower months for closed sales on LBI. In fact, over the past three years, August sales have not broken 30 homes sold. This trend reflects a seasonal pause as buyers shift attention to vacations or back-to-school plans, and many contracts signed in August don’t close until early fall.
Average Sale Price
July 2025: $1,902,855
August 2025: $2,584,268
Average sale price rose significantly, largely due to several high-end closings. This does not necessarily mean values are increasing across the board at a notably higher rate, but rather that a different mix of homes sold last month.
Looking at the broader trend, the year-to-date average sale price on LBI through August 2025 is approximately $2.21 million—up 5.5% compared to the same period in 2024.
New Listings
July 2025: 48 new listings
August 2025: 58 new listings
More sellers listed in August, pushing new listings up more than 20 percent. This is a positive sign for buyers looking for more options as we move into the fall season.
Sales to List Price Ratio
July 2025: 97.8 percent
August 2025: 96.3 percent
Buyers negotiated slightly more in August. This may reflect growing inventory, longer days on market, or a shift in urgency.
Median Cumulative Days on Market (CDOM)
July 2025: 38 days
August 2025: 79 days
The median days on market more than doubled. Many of the homes that closed in August had been sitting for a while, suggesting that buyers were finally circling back to properties that had lingered earlier in the season.
Total Inventory
July 2025: 150 homes
August 2025: 144 homes (excluding Active Under Contract)
Total inventory held fairly steady, but it’s important to note this August number includes only actively available homes. When you remove homes already under contract, buyer choices are even more limited than the total suggests.
Market Insights
A small number of high-end closings drove up the average sale price, but the overall market pace slowed.
Longer time on market suggests that pricing and presentation are becoming more critical as buyer urgency fades.
New listings are up, but absorption has slowed. Sellers should not assume that all listings will move quickly.
With the new mansion tax in effect since July, some upper-tier sellers may be adjusting timing or pricing based on updated net proceeds.
What This Means for Buyers and Sellers
For sellers, competition is rising slightly among active listings for the month of September. While pricing remains strong at the top, success in this market depends on realistic expectations and clean presentation. However, due to the overall limited inventory, even with a bit of lighter absorption for the month, sellers still hold a strong position. The market remains highly responsive to well-priced homes, especially those in desirable locations. Properties that show well and are priced appropriately continue to sell quickly, often with multiple offers on the table. While the pace of activity may be shifting slightly, conditions remain favorable for sellers who align with today’s pricing expectations.
For buyers, increased inventory and longer market times may provide more breathing room. That said, many competitively priced homes are still receiving multiple offers and, in some cases, selling over asking. With recent downward movement in mortgage rates and the possibility of a broader interest rate cut on the horizon, buyer activity could intensify in the coming months. In a market with limited supply, any increase in demand could quickly lead to renewed competition, especially for move-in-ready properties in prime locations. If the basic principles of supply and demand hold true, as they almost always do, we could be poised to see further acceleration in home prices.
Source: BrightMLS. All data for residential, multi-family, and land sales.
