Is it a Good Idea to Wait for a Hurricane Before Buying a Home in the Long Beach Island Real Estate Market
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Should You Wait for a Hurricane to Buy in the LBI Real Estate Market? 
Should You Wait for a Hurricane to Buy in the LBI Real Estate Market? 
Should You Wait for a Hurricane to Buy in the LBI Real Estate Market?
Long Beach Island Real Estate
Should You Wait for a Hurricane to Buy in the LBI Real Estate Market? WIth prices in the Long Beach Island real estate market generally high, many buyers look for opportunities to beat the market. One of the most common places to start looking in the distressed sale market (short sales, foreclosure, etc.) but these are few and far between in the LBI real estate market. Therefore, many buyers will try to wait for the next major weather event to crash the local real estate market. While this can of course happen at any time, the question is how sound of a strategy is this? Should You Wait for a Hurricane to Buy in the LBI Real Estate Market? The short answer is, probably not. There are few reasons for my making this assertion. They are:
- Historically the LBI real estate market has been very stable, even in the face of significant downturns like the economic crash of 2008 and Hurricane Sandy in 2012.
- Major development projects like the Federally funded beach replenishment program, larger bulkheads, and other drainage initiatives have helped to make LBI more secure.
- There are far fewer “at-risk” homes in the LBI real estate market today than there were in 2012 thanks to all the rebuilding that has taken place since Hurricane Sandy.
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
Should You Wait for a Hurricane to Buy in the LBI Real Estate Market?
I have a lot of clients that suggest waiting for a hurricane to purchase a home in the LBI real estate market. While of course we want to try and time the market as best we can, waiting for a hurricane may create a scenario where you don’t ever purchase a home on Long Beach Island. A hurricane can impact LBI at any time but historically, LBI is rather secure from direct impact. Looking back over the last 100 years or so, we have only had a few major weather events. They were in 1944, 1962, and 2012. There was also a large winter storm in 1992 but that was a nor-easter and while it was the largest storm in recent memory until Hurricane Sandy in 2012, it did not cause damage on a scale large enough to significantly impact the real estate market on Long Beach Island. If we use the major weather events as a guide, you could be waiting 15-20 years before having a chance to buy. Additionally, there is no certainty that the market will crash after such a storm. It did not do so after Hurricane Sandy. While it is true that the average price of a single-family home on LBI fell, the overall INVESTMENT in the area was about the same. In other words, if a home was $500,000 before Hurricane Sandy and then sold for $400,000 after the storm, it probably needed around $100,000 of work making the total outlay of capital about the same. This is a very simple example but it was more or less the case for homes in the LBI real estate market. This has been the case time and time again in the natural ups and downs of a real estate market. While Long Beach Island is not immune from the national real estate trends, we do not see as large a drop as some other markets. This can be attributed to several factors including the local rental market (which helps to supply an additional source of income for homeowners who may need help), the high demand for a home on LBI, and the affluence of the area. There were many homeowners on LBI who were able to begin the rebuilding process after Hurricane Sandy and did not need to wait for flood insurance proceeds to begin the work. This lead to Long Beach Island recovering at a very fast rate. Additionally, since Hurricane Sandy, much of LBI has been rebuilt, including the extensive beach replenishment program, so the Island is better prepared for a storm. Add to this the fact that older, more valuable homes are torn down and new homes built in their place, often exceeding current minimum height codes. Logically, there should be far fewer impacted homes on Long Beach Island in the next weather event.
Buying in the Long Beach Island Real Estate Market
Every storm is different and so too is the impact, both physically and economically, it will have on the Long Beach Island real estate market. Waiting for a large weather event to create a drop in prices may work, but I think there are more reasons against this strategy than there are to support it. There are opportunities in every market, including this one. It is just a matter of keeping an eye on the inventory, understanding what creates value, and acting quickly when the right option enters the market. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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