Understanding Why Land and Knock Down Home Prices Are Increasing in the Long Beach Island Real Estate Market
Why Land Value is Increasing on Long Beach Island NJLong Beach Island Real Estate Prices
The real estate market on Long Beach Island, like any market, is subject to high and low points. When home prices rose in the early 2000’s, so too did they rise on Long Beach Island. When the national real estate market and stock market fell in 2008, the LBI real estate market followed suit. That said, there are some important differences between the LBI real estate market and other markets around the country. The main difference is the summer rental market. Summer rentals provide a steady stream of income that helped to limit the number of short sales and foreclosures in the LBI real estate market (which in turn helped to keep prices more stable). At its core, land is what really determines property value on Long Beach Island. By examining land value, one can often predict the future of the LBI real estate market. Therefore, it is important to understand Why Land Value is Increasing on Long Beach Island NJ.
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Why Land Value is Increasing on Long Beach Island NJ
There are a couple of reasons that the overall value of land prices are on the rise. They are:
- Hurricane Sandy eliminated many of the “older” homes on LBI
- There has been a wave of new construction which increase the overall value of the LBI real estate market
Hurricane Sandy caused a great deal of damage to homes on Long Beach Island. Most of this damage was limited to older homes on the bayside or homes within the first block between Long Beach Blvd and Beach Ave. Many of these homes were either sold as storm damaged homes for the purpose of building a new home or the owners of these properties built a new home themselves. These homes, for the most part, would have been viewed as tear downs in the LBI real estate market anyway so with their being sold, supply and demand dictates that prices will increase for other similar homes.
Hurricane Sandy also caused a massive wave of new construction on Long Beach Island. It seems every street on LBI is lined with new homes. Thanks to flood insurance payments, many homeowners were able to build a new home who may have otherwise not been able to do so. This new construction has a very positive influence on the LBI real estate market. Whenever there is a major investment in a real estate market, home prices will increase. At no point in the history of Long Beach Island has such a dramatic and far reaching redevelopment taken place so this signals a rise in prices. As the value of the overall real estate market rises, so too does the value of land in the LBI real estate market.
So, when trying to look at Why Land Value is Increasing on Long Beach Island NJ, one must simply look to Hurricane Sandy. Hurricane Sandy was the worst disaster to hit Long Beach Island, and one of the greatest motivators of change. For more information about Why Land Value is Increasing on Long Beach Island NJ, feel free to contact me, Nathan Colmer, and I will be happy to answer any questions you have!
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
www.BuyLBI.com
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