How Do Different Areas of the Long Beach Island Real Estate Market Appreciate
The Long Beach Island real estate market is made up of many different locations. Each of these locations have pros and cons which can greatly impact the rate of market appreciation…or depreciation. As we are in a period of relative financial market uncertainty with large swings in the stock market, understanding LBI real estate market appreciation and how do different areas of the Long Beach Island real estate market appreciate is essential to investing on LBI. To expand on this point, with so many different locations (oceanfront, oceanside, bayside, etc) understanding how each spot on LBI plays into the market can greatly impact your ability to buy and retain value in the LBI real estate market. To summarize this topic:
- Property locations closer to the beach tend to appreciate faster
- Avoiding some “negative” to the location is a good safeguard to ensure market stability and appreciation
- The house style plays an important role in overall market appreciation but location is key
LBI Real Estate Market Appreciation
The adage of location, location, location is key to understanding the LBI real estate market. There are several primary locations on Long Beach Island. They are: oceanfront, oceanblock, oceanside, bayside, bayfront, lagoonfront. Each location offers something different and in this article we are going to focus on these locations and not the different towns of LBI. Generally speaking the closer to the beach the better. For instance, a study of past market ups and downs shows that the rate of appreciation is greater and the rate of depreciation is lower the closer to the beach you buy (generally speaking of course. This is not to infer that homes on the bayside, bay front, etc do not perform well in the LBI real estate market. Rather they appreciate slower and depreciate faster than their oceanside, oceanblock and oceanfront counterparts. One interesting variable to this statistic is inventory levels. Right now the LBI real estate market is experiencing very low inventory levels and as such bayside homes have seen a notable uptick in their appreciation strictly looking at a percentage increase. This is largely fueled by either buyers being out priced of oceanside/oceanfront locations and fewer options being available thus opening up the bayside market to more and more buyers. When looking at location it is always good to keep in mind the negatives of the location. For example buying behind a commercial building will hurt the rate of appreciation and the overall market value of your investment. Likewise while the house style plays a role in the overall value, nothing beats location and lot size. A large lot close to the beach will be valuable in relation to the market regardless of what style home is built!
Buying a Home in the LBI Real Estate Market
Making a large investment in the LBI real estate market is not to be taken lightly. There are subtle yet significant forces at play that can greatly impact how your investment and asset will rise and fall in the overall market. For instance, as I mention above when we use the term “location” in this context we are only referring to ocean proximity. The area of LBI plays yet another role and can in fact be almost as important. Likewise the price range of the home can greatly impact the rate of appreciation. I am happy to go over what determines the value of a home in the LBI real estate market and give you detailed insight on LBI real estate market appreciation. Feel free to contact me anytime.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org
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