Evolving LBI Real Estate Market Trends with Storm Damaged Homes on Long Beach Island New Jersey
Hurricane Sandy and the LBI Real Estate Market
Hurricane Sandy made landfall on Long Beach Island at the end of October 2012. The storm, which was unprecedented in both size and damage, created a new genre in the LBI real estate market: that of the storm damaged home. These homes which suffered substantial damage from flooding are sold essentially for land value with little to no consideration being given to the physical structure. In most cases, the owners of these homes chose to simply accept their insurance payment and “walk away” creating some interesting opportunities for buyers in the LBI real estate market. As we approach the one year mark of Hurricane Sandy’s historic impact, Current Trends in the LBI Real Estate Market and Storm Damaged Homes have begun to change and have created some new opportunities for both buyers and sellers in the LBI real estate market.
Current Trends in the LBI Real Estate Market and Storm Damaged Homes
While many of the storm damaged homes have cleared the LBI real estate market, there are still many properties for sale as homeowners finalize their settlements with the insurance companies. This has created some new opportunities and trends in the LBI real estate market that buyers and sellers would be wise to follow. For example:
- The listing price of a storm damage home seems to have increased
- Older, non-damaged homes are on the market for sale and forced to compete with the current inventory
- On average, the sales price of homes in the LBI real estate market have been increasing
The simple law of supply and demand dictates that has supply lessens, demand will increase. This is the case with many storm damaged homes on Long Beach Island. Current Trends in the LBI Real Estate Market and Storm Damaged Homes show us that much of the initial inventory has cleared the market and therefore new listings for storm damaged homes are entering the market at a higher price. This is not to infer that these homes are still not “good buys” in the LBI real estate market. Only that the window of opportunity for these storm damaged homes is starting to close and buyers must act quickly when a good deal presents itself.
With the supply of storm damaged homes starting to decrease, new buying opportunities are opening in older, non –damaged homes on Long Beach Island. The traditional Cape Cod style house which was the norm for construction in the 1950’s and 1960’s on LBI saw the most damage from Hurricane Sandy however there were many of these homes that suffered little to no damage from the storm. These homes, especially if they have not been updated, may be the best area to look for value in the LBI real estate market. These homes must compete with comparable sales of storm damaged homes (as it is common for older homes to be sold as knock downs) and therefore must be priced competitively in order to attract the attention of buyers. Many of these older homes are already at or above the new Base Flood Elevation (BFE) as the natural elevation of the ground exceeds FEMA;s requirements.
Currently we have been seeing not only an increase in sales activity but also an increase in the average sales price of single family homes, condominiums and duplexes in the LBI real estate market. Home sales over the summer have been averaging more than a closing per day and the average price of a single family home is higher than 2011 and roughly the same as 2012. There are roughly 50 homes under contract at any given time over the past few months on Long Beach Island so with this kind of buyer activity, it is easy to see why it is important to follow Current Trends in the LBI Real Estate Market and Storm Damaged Homes.
The LBI Real Estate Market on Long Beach Island NJ
Current Trends in the LBI Real Estate Market and Storm Damaged Homes have shown us that there are still excellent opportunities to buy both storm damaged and non-storm damaged real estate on Long Beach Island. Regardless as to whether you are a buyer or seller in the LBI real estate market, it is of vital importance to follow the current market trends so as to be able to assess a good opportunity when it presents itself. This includes understanding the average sales price of a home on LBI, the average days on market and the percentage between listing and sales price of a home. For more information about Current Trends in the LBI Real Estate Market and Storm Damaged Homes please do not hesitate to contact me, Nathan Colmer, with any questions and I will be happy to assist you!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Toll Free: 800-222-0131 | Email: firstname.lastname@example.org