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 essential to have an understanding of the oceanblock real estate market on Long Beach Island. The summer sales data shows us that an appropriately priced home will sell for a higher price and in less time than the LBI averages have been showing us. Before submitting an offer on an oceanblock home in the LBI real estate market, all buyers need to understand how this unique facet of the market prices out. A careful comparison must be made for oceanblock homes and the real estate market as a whole.
Generally speaking, the ocean block real estate market on Long Beach Island is competitive. The average price of a single-family home on the oceanblock has jumped considerably over the last several years. The recent price apperication is primarily attributed to the growing trend of new homes being sold in this location. New construction homes dominate the current buyer trends, and the oceanblock is one of the most highly sought-after areas of the LBI real estate market. Overall, the Long Beach Island real estate market has been showing steady and robust 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 experiencing extremely 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 translate to a high demand for tear-downs, 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 intense competition for these ocean block homes, both new and old, as the location offers many advantages to others in the LBI real estate market.
Oceanblock homes are located near 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 oceanside. In most areas of LBI, there are only 2-10 oceanblock homes on any given street. The limited supply of oceanblock homes coupled with their convenience help makes 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.
Liquidity in real estate refers to how quickly a home will sell in the LBI real estate market. There is an individual market for every property on Long Beach Island, and this market will often dictate how quickly a home will attract a buyer. This means a certain number of people will be interested in the location, home style, and amenities offered by a home. Likewise, there will be a certain number of buyers who are not interested. When pricing a home to sell in the LBI NJ real estate market, it is necessary to understand the liquidity of a home. Buyers and sellers must understand this dynamic to ensure a successful transaction in the Long Beach Island real estate market. 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. Bayside 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 near 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 robust 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 component of that investment:
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 LBI real estate market, it would be wise to assess these properties first. They will usually rent faster than bayside properties and 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.