Lundy scored 14 points. He played hard to the end, scoring eight in the fourth quarter, a period in which Paulsboro started with a 16-point deficit and never made a run.
Last year, Paulsboro ended its season with a 67-54 loss in the Group 1 state semifinals against Asbury Park.
Point Pleasant Beach (27-3) will play Dayton in Sunday's state Group 1 final at Rutgers.
This was a truly impressive Point Pleasant Beach squad, one that spread the floor, continually worked backdoor plays, and hit shots from deep range.
"This team was more patient, and we tried to pick up the pace and that is how we play," Lundy said. "They spread the court, found more gaps in our defense, something most opponents don't do."
The key for Point Pleasant Beach was not to get rattled by Paulsboro's quickness.
"We wanted to use their aggressive against them, and if we did that, we could win the one-on-two matchups, passing the ball and getting open shots," Point Pleasant Beach coach Nick Catania said.
"They trap a lot, and we knew if we could beat them that we were confident we could get open shots."
The Red Raiders had trouble getting Lundy the ball. He was fronted by Dom Uhl, a 6-8 junior who like Lundy is a Division I prospect.
When Paulsboro missed some early shots from close range, it was a signal that this would be a difficult game for the Red Raiders, who trailed by 30-19 at halftime.
"They have guards who can control things, and if you don't make layups and shots early, you are in trouble, and that is what happened to us," Paulsboro coach Sean Collins said.
The Garnet Gulls jumped to their first-quarter lead sparked by four three-point field goals from senior guard P.J. Kineavy.
Paulsboro played Kineavy more closely after that, but it opened the floor for everybody else.
Kineavy ended with a game-high 21 points. Junior point guard Matt Farrell scored 14, but his true contribution was running the offense.
Riley Calzonetti, a 6-4 senior, scored eight of his 16 points in the third quarter when the Garnet Gulls broke the game open.
While disappointed, Lundy was able to appreciate his time at Paulsboro, where he elevated the program to a South Jersey power the last two years.
"I can definitely appreciate the crowd at Paulsboro. It was definitely fun playing here," Lundy said. "With the crowd, the support, the family, my teammates, coaches, everything about it I loved and I will miss it."
And they will miss Lundy at Paulsboro, but not at all the schools that had to attempt to defend him and usually came out on the short end.
Paulsboro 13 6 16 13 – 48
Point Pleasant Beach 23 7 21 16 – 67
P: Cassius Carter 4, Kane Segar 8, Xavier Lundy 14, Kenan Williams 5, Theo Holloway 6, Saleem Little 4, Julien Davenport 4, Aaron Robinson 3.
PPB: Matt Farrell 14, Riley Calzonetti 16, Noah Yates 9, Dom Uhl 7, P.J. Kineavy 21.
Contact Marc Narducci at firstname.lastname@example.org. Follow @sjnard on Twitter.