Why Buyer Activity Has Increased in the Real Estate Market on Long Beach Island
Increased LBI Real Estate Buyer ActivityLong Beach Island Real Estate
The real estate market on Long Beach Island has seen some significant improvements and Hurricane Sandy made landfall at the end of October 2012. Both the number of homes sold in the average sales price have both been on the rise and investment in second homes has been strong. Like any market, the LBI real estate market is subject to high and lows so it is important to understand the current real estate trends on Long Beach Island and the factors that have contributed to increased LBI real estate buyer activity.
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Increased LBI Real Estate Buyer Activity
There are three main reasons buyer activity has increased in the Long Beach Island real estate market. They are:
- There are some excellent opportunities to buy a home and build new construction in the LBI real estate market
- Since Hurricane Sandy, many traditional Cape Cod style homes have either been renovated or raised thus limiting the pool of these traditionally lower-priced homes
- The rate at which Long Beach Island recovered was much faster than comparable shore towns
New construction is one of the best investments a buyer can make in the LBI real estate market. Purchasing a vacant lot, storm damaged home, or older style beach cottage can make way for impressive new construction. Typically, the purchase of the land and the cost of construction should come in between 20% and 30% under market value. With these high returns, there are outstanding opportunities to beat the market or invest in a speculative real estate construction project.
Hurricane Sandy caused the most damage to the traditional Cape Cod style homes on Long Beach Island. Most of these homes were built on a block foundation and were below base flood elevation. Since Hurricane Sandy, many of these homes have been either renovated, raised or demolished for new construction. In any case, the rehabilitation of these homes has added to their value thus pricing out of reach for some buyers. With the overall supply of single-family homes priced under $600,000 at a lower point, buyers are anxious to take advantage of homes women, on the market.
Hurricane Sandy caused widespread damage not only to Long Beach Island but the entire coast of New Jersey. Sadly, many shore towns are still struggling to recover. Long Beach Island made an outstanding recovery and the summer following the storm’s impact was business as usual. The rate at which LBI recovered, coupled with proactive preventative storm measures such as beach replenishment, have helped to inspire buyer confidence and improve the Long Beach Island can be a safe and worthwhile investment.
LBI Real Estate Market Trends
When buying or selling in the LBI real estate market is important to understand the prevailing trends and how they can impact your investment. It is important to look at the market as a whole as well as individual properties to determine what is and what is not a smart investment. While increased LBI real estate buyer activity is a certainly taking place, it is important to evaluate all the options before entering into any LBI real estate transaction. For more information about home sales on Long Beach Island, contact me and I will respond right away.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market