Understanding the Trends of New Homes Sales in the Long Beach Island NJ Real Estate Market
Long Beach Island and the LBI Real Estate Market
The Long Beach Island area is fueled mainly by the local LBI real estate market. It is through the LBI real estate market that the majority of summer tourism, both in the form of summer vacation rentals on LBI and LBI real estate transactions, takes place. Recently, in the wake of Hurricane Sandy, there have been concerns voiced by many as to the nature of the LBI real estate market and what homes will be the most valuable. With new FEMA regulations in place and worry by some about the increased costs of flood insurance, some buyers are reluctant to purchase older Cape Cod style homes. While much of the worry about flood insurance is misplaced (as most flood insurance rate premiums will be surprisingly affordable given the natural high elevation of Long Beach Island) New Home Sales in the LBI Real Estate Market on Long Beach Island are a strong segment of the Long Beach Island real estate market.
New Home Sales in the LBI Real Estate Market on Long Beach Island
Hurricane Sandy, while a major tragedy, also provided the opportunity for many homeowners on Long Beach Island the ability to renovate or build a new home on Long Beach Island. While many of the older Cape Cod style homes are very well built and are still very affordable with respect to flood insurance, new construction in the LBI real estate market does offer some distinct advantages such as:
- New construction will be built to or exceed the current FEMA guidelines thereby making flood insurance rates very low. In most cases on a few hundred dollars per year.
- New construction on LBI is built to withstand high winds through hurricane impact windows and improved construction methods
- A “new” house often shows better when the time comes for resale as most buyers in the LBI real estate market prefer new or newer construction
New Home Sales in the LBI Real Estate Market on Long Beach Island are an important statistic in the real estate market to track as they go a long way in determining the future of the LBI real estate market. All homes on Long Beach Island now have a Base Flood Elevation associated with them. This number, also known as a BFE, delineates the higher above sea level a house should be built to achieve the best insurance rate. New homes on Long Beach Island are typically required to be built to the new BFE plus 1 additional foot at a minimum in order to provide the best level of protection. This is not to infer that all of the older Cape Cod style homes are below BFE (as many are at or above the recommended number). When the positives impact of flood insurance is combined with the heightened construction standards and the “newness” of the property is factored in, it is easy to see why New Home Sales in the LBI Real Estate Market on Long Beach Island are on the rise.
New Construction in the LBI NJ Real Estate Market
Due to Hurricane Sandy, there is a tremendous amount of new construction taking place on Long Beach Island. This will impact the LBI real estate market as a whole since, prior to Hurricane Sandy, there had not been a major catalyst for change on LBI in more than 20 years. The surge of new homes on LBI will in time generate a number of New Home Sales in the LBI Real Estate Market on Long Beach Island which should strengthen the LBI real estate market as a whole and make investment in the Long Beach Island area more appealing to both buyers and sellers. For more information about New Home Sales in the LBI Real Estate Market on Long Beach Island!
Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | firstname.lastname@example.org