Property Values in the LBI Real Estate Market on Long Beach Island NJ After Hurricane Sandy
Long Beach Island NJ and Hurricane Sandy
Now that Hurricane Sandy has passed, Long Beach Island NJ, and the entire Northeast for that matter, has begun the long process of cleanup and rebuilding. While many individuals are far away from being concerned about the value of their property, many others who were lucky enough to escape damage from Hurricane Sandy are left wondering about Property Values on Long Beach Island NJ After Hurricane Sandy. This is particularly relevant for those who currently have their house listed for sale in the LBI real estate market!
Hurricane Sandy: The Negative Impact on the LBI Real Estate Market
Hurricane Sandy has left much damage in her wake and for some individuals and families, this damage is not able to be corrected. Despite living in a flood zone, many homeowners on Long Beach Island NJ are without flood insurance. Flood insurance is not required (unless you have a mortgage) and since many homes on Long Beach Island NJ are multi-generational, they are without mortgages and their owners have allowed their flood coverage to expire. These individuals, without flood insurance and without the financial means to rebuild, will see the greatest reduction in their Property Values on Long Beach Island NJ After Hurricane Sandy. These homes will have to be sold either for land value or as a “project house”. These sales will be more difficult because obtaining a mortgage for either will be very difficult. Therefore, the price must reflect the situation and be sold for less than it normally would have. In the short term, this will have a negative impact on prices as these homes will lower comparable sales and average sales on Long Beach Island NJ and in the LBI real estate market as a whole.
Hurricane Sandy: The Positive Impact on the LBI Real Estate Market
Despite the tragedy of Hurricane Sandy on Long Beach Island NJ, there is an “upside” to the storm. Many homes and commercial properties on LBI that were damaged will be completely renovated inside and out! This will lead to home values, both individual and in the LBI real estate market as a whole, increasing. From a summer rental standpoint, many homeowners are taking this opportunity to upgrade their homes to include new kitchens, new central air conditioning systems and other modern amenities. This will increase the weekly summer rental rates in the LBI real estate market and make for a more enjoyable summer vacation on Long Beach Island for the summer tenants. These updated homes will also sell for a higher price than they would have if they were in their original state.
Property Values on Long Beach Island NJ After Hurricane Sandy
Taken as a whole, it is my opinion that Property Values on Long Beach Island NJ After Hurricane Sandy will have a short term decrease followed by an increase in overall value in the LBI real estate market. When pricing a home to sell in the Long Beach Island real estate market after Hurricane Sandy, there are a few options:
- Sell the LBI property at land value for new construction
- Sell the property on Long Beach Island at a “Pre-Hurricane Sandy” price point minus the estimated costs of renovation
- Renovate the house and sell it as a finished project in the LBI real estate market
Each of these options has advantages and disadvantages but all are worth consideration if you are planning to sell a house in the LBI real estate market after Hurricane Sandy. If you are considering buying or selling real estate on Long Beach Island after Hurricane Sandy or would like more information on Property Values on Long Beach Island NJ After Hurricane Sandy, please do not hesitate to contact me anytime!
The Van Dyk Group
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