How Hurricane Sandy Impacted the LBI Real Estate Market
Hurricane Sandy and the LBI Real Estate Market
Hurricane Sandy, which struck Long Beach Island at the end of October 2012, left a major impact on the area and the Long Beach Island real estate market. Hurricane Sandy was the first major storm to directly impact Long Beach Island since at least 1992 and really can only be compared with the notorious Storm of 62 which was saw a similar combination of storms to create one major weather event. In the wake of Hurricane Sandy, many LBI homeowners were left with damaged homes now in need of repair or house raising and also in need of an understanding of the different flood zones on Long Beach Island. While Hurricane Sandy changed much on Long Beach Island, the LBI real estate market remained comparatively stable. The LBI real estate market witnessed a number of storm damaged homes come on the market, however these sales represent only about 1/5 of the current market activity. The majority of LBI homeowners were able to rebuild either on their own or with the aid of insurance money. Hurricane Sandy and the Long Beach Island NJ Real Estate Market have created some new challenges that must be considered and it is more important now than ever to do one’s homework before buying or selling in the LBI real estate market.
On the whole, prices in the Long Beach Island real estate market have remained strong and interest in the local market has increased. Hurricane Sandy and the Long Beach Island NJ Real Estate Market have created a few generalizations that currently hold true in the LBI real estate market such as:
- The average price of a single family home appears lower than a year ago however when storm damaged homes are taken out of the equation (as they are being sold at land value with little to no consideration given to the structure) prices have actually remained the same or increased in some months.
- Activity has remained steady and in general has increased for homes that have been elevated on pilings
- There are excellent opportunities for those looking to purchase a damaged home and renovate or rebuild
- It is important to check and recheck local zoning laws and flood maps before buying or selling in the Long Beach Island NJ real estate market.
Flood Zones and the Long Beach Island NJ Real Estate Market
Perhaps the question on most everyone’s mind is with regards to flood insurance costs and if these costs will negatively impact the value of the Long Beach Island real estate market. The truth is, flood insurance rates are very affordable in most cases and by no means does a house have to be raised to obtain flood insurance. Flood insurance rates are based on the combined elevation of the ground above sea level and the structure’s elevation. Most homes on Long Beach Island are, at worst, 2 -3 feet below the Base Flood Elevation or BFE (after combining the ground elevation with the property’s foundation) established by FEMA and these homes will see a comparatively minor increase in their flood insurance. Given the reality of flood insurance, it does not seem to be the specter that many believe it to be and will therefore have minimal, if any, impact on the Long Beach Island real estate market valuations. Exceptions do of course exist, for example homes that have a basement (and believe it or not there are homes on Long Beach Island that have basements!) so it is best to speak with an insurance agent about a specific property to understand what unique characteristics may exist.
Hurricane Sandy and the Long Beach Island NJ Real Estate Market
If you are considering the purchase or sale of real estate in the Long Beach Island real estate market, it is important to understand the different areas of LBI and how they weathered Hurricane Sandy. For example, Holgate, on the very southern end of Long Beach Island, suffered the most from Hurricane Sandy and while progress has been made, the recovery takes time. Fear, more than anything else, drives a market and Holgate will sadly carry the memory of the damage for a long time to come. Therefore, it may be better to focus a search in the LBI real estate market in areas that handled Hurricane Sandy better than Holgate. This is simply one of many ways that Hurricane Sandy and the Long Beach Island NJ Real Estate Market are entwined.
If you are considering buying or selling in the LBI real estate market please feel free to contact me, Nathan Colmer and I will be happy to answer any questions you have about the area, the Long Beach Island NJ real estate market or Hurricane Sandy in general. You can also Click Here to search all homes for sale on Long Beach Island in the LBI
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org