Nathan Colmer | Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
If you are considering buying or selling an oceanblock home on LBI, it is important to have an understanding of the oceanblock real estate market on Long Beach Island. The summer sales data shows us that a properly price home will sell for a higher price and in less time than the LBI averages have been showing us. A careful comparison must be made prior to submitting or accepting any offer for not only oceanblock homes but also the LBI real estate market as a whole.
Generally speaking, the ocean block real estate market on Long Beach Island is competitive. Looking back only a few years, the average price of a single-family home on the ocean block was around $900,000. Today the average price point is in the $1,200,000 range. This represents a considerable increase in the value of LBI real estate, largely attributed to the nature of homes sold as new construction. These new construction homes dominate the current buyer trends. Overall, the Long Beach Island real estate market has been showing strong and steady growth with the ocean block component of the Long Beach Island real estate market being no exception.
Sales of single-family homes in the ocean block areas of Long Beach Island have been witnessing a period of high demand. Many would argue the ocean block offers one of the best locations on LBI , as nearly every home will provide a splendid view of the ocean, and close proximity to the beach, makes travel to and from the ocean simple. Recently, we have been witnessing a demand for new construction homes on the ocean block which has helped to translate to a high demand for tear down’s, as builders will fight to purchase these homes and build a speculative construction to be re-sold on the open market.
Investment in the ocean block areas. On Long Beach Island can prove to be very wise. There is a finite number of ocean block areas to be developed and as many of the older Cape Cod style homes and duplexes are torn down, the value of the remaining homes most certainly increases. We have seen strong competition for these ocean block homes, both new and old, as location offers many advantages to others in the LBI real estate market.
Oceanblock homes are located in close proximity to the ocean with no streets to cross. Generally speaking, if there is a road to cross, such as Atlantic Ave shown in the image, the property is considered to be oceanside. In most areas of LBI there are only 2-10 oceanblock homes on any given street. It is their limited supply coupled with their convenience that help to make them a valuable area of the LBI real estate market.
When looking to buy a home on the oceanblock it is not uncommon to see some oceanside homes listed as oceanblock homes, especially in areas like Brant Beach where there are technically very few true oceanblock homes.
There is an individual market for every property on Long Beach Island. This means there are a certain number of people who will be interested in the location, home style, and amenities offered by your home. Likewise, there will be a certain number of buyers who are not interested. It is essential to market to those buyers who are interested in your home. When pricing a home to sell in the LBI NJ real estate market, it is essential to understand the liquidity of your home. To this end, there are a few constant variables to consider such as:
Above all else, location drives value on Long Beach Island and determines liquidity in the LBI real estate market. Bay side homes will not only cost less, but will usually take longer to sell than their oceanside counterparts. While there are some advantages to living on the bayside, most buyers prioritize distance to the beach above all else.
Oceanblock homes tend to have a very high liquidity rate as they offer a healthy mix of price and convenience. Their location in close proximity to the beach will ensure great views and a short walk to the beach. The strong rental income will help to cover costs and oceanblock homes will generally cost about 20% less than an oceanfront home. Together this makes for a strong oceanblock sale market on Long Beach Island.
If you are thinking of buying a house in the LBI real estate market as an investment, there are some important details you should be aware of when planning to rent the house out as a part of that investment. For example,
The old adage, “location, location, location” is the key when renting a home on Long Beach Island. While homes rent in all locations on LBI, oceanfront, ocean block and oceanside properties are by far the most highly sought after. If you are considering an investment in the LB real estate market, it would be wise to consider these properties first as they will not only rent faster than bayside properties, they will also hold their value better during the ups and downs that naturally occur in any market. That being said, you will pay more for an oceanside, oceanblock or oceanfront home on Long Beach Island so you have to make sure the additional rent and appreciation are worth the extra cost. By no means should bayside properties be excluded when considering an investment on LBI, but oceanblock, oceanside and oceanfront homes usually tend to offer a better return provided.