Nathan Colmer | The Van Dyk Group
C: 609.290.4293 | O: 609.492.1511
Information about buying LBI real estate, Hurricane Sandy and Long Beach Island New Jersey. Buying LBI real estate after Hurricane Sandy can offer some of the best investment potential on Long Beach Island New Jersey.
Hurricane Sandy was a major event in the history of Long Beach Island and the LBI NJ real estate market. Hurricane Sandy has created some excellent buying opportunities-but buyers must be cautious before investing in the LBI real estate market!
While Hurricane Sandy was undeniably a major event in the history of Long Beach Island, the area has much improved since the storm made landfall. There are very few homes left on the market that have not been repaired or rebuilt and overall the price of a home on Long Beach Island has risen. This is not surprising considering there are historical precedents we can look to that have come before Hurricane Sandy. There were two major weather patterns that can relate to Hurricane Sandy on Long Beach Island. They are:
I choose these examples as Hurricane Katrina is a very recent coastal storm that devastated seaside communities and the "Storm of 62" for its geographical relevance.
The "Storm of 62" was a powerful confluence of weather systems not dissimilar to Hurricane Sandy (however in 1962 there was not a hurricane). The "Storm of 62" destroyed much of Long Beach Island NJ, cut a new inlet in Holgate and Harvey Cedars and even washed a US Navy destroyer onto the beach! Much of Long Beach Island was destroyed and almost no home escaped unscathed.
Hurricane Katrina was a powerful Category 5 hurricane that struck the Gulf coast and destroyed New Orleans. Apart from the horrible loss of life in Louisiana, Hurricane Katrina is analogues to Hurricane Sandy, however there are differences when considering their respective real estate markets.
After the "Storm of 62" many LBI homeowners sold their homes for fear of a repeat storm (which did not occur for 50 years). The psychological fear of buying in a coastal community certainly lowered general prices in the LBI real estate market, but most still saw the real estate market on Long Beach Island as a good investment-and they were right! Homes continued to sell and for a fair price.
Looking at another example, Hurricane Katrina impacted the real estate market, but in some markets it was not in the ways many would expect. Below are the average sale prices in Baton Rouge LA before, during and after the Katrina disaster:
Surprisingly, the average price actually increased! To be fair, the argument can be made that this was partly due to the overall increases in the national real estate market, but it is interesting to see that the disaster did not scare away as many buyers as may have been expected.
In the years since Hurricane Sandy made landfall prices of single family homes in the LBI real estate market have risen by a great deal. Part of this is due to the larger, new homes that have been built and part of it has to do with a general improvement in the LBI marketplace. Below is a snapshot of home prices in the years before, during and after Hurricane Sandy.
As the numbers show, homes prices have risen by a great deal. 2013 saw an expected dip in prices and home were being sold for the price of vacant land but the market quickly bounced back to levels higher than before Hurricane Sandy!
Hurricane Sandy has created many buying opportunities in the Long Beach Island real estate market, but buyers have to be aware of what to look for when purchasing storm damaged real estate. The most important factors to consider are:
There were some areas of LBI that saw minimal impact from Hurricane Sandy such as Barnegat Light and Surf City. Some buyers have looked to these areas as particularly safe and therefore, these markets have seen an increase in activity.
If you are considering a purchase of real estate on Long Beach Island NJ after Hurricane Sandy, contact me and I will help you get started. I can explain in detail not only the LBI real estate market, but also the new rules of flood insurance and the costs of rebuilding a home. I have enclosed a link to the "Hurricane Sandy" section of by blog where I have many informative articles. You can also contact me anytime to ask me any questions you have!
Read about Changes to Long Beach Island New Jersey. Hurricane Sandy and the general strength of the LBI NJ real estate market have prompted major Changes to Long Beach Island New Jersey. These changes can impact your investment on Long Beach Island.
In September 2012, Congress made substantial changes to the National Flood Insurance Program. These changes penalized owners who were not currently at the new Base Flood Elevations. While not all homes on Long Beach Island need to be raised, these changes to the flood policy (and the damage caused by Hurricane Sandy) prompted many homeowners to raise their homes or tear down their storm damaged homes, and build new. This has clearly changed the look of Long Beach Island in the following ways:
These changes are extremely positive for the Long Beach Island area and the greater LBI NJ real estate market. It is a common truth that newer homes increase the overall value of a real estate market, and with so much new construction taking place, the entire LBI area will benefit. One would be hard pressed to drive down any street on Long Beach Island and not see some sort of redevelopment and investment taking place. The changes to Long Beach Island will create a new and positive environment for the real estate market, and the enjoyment of everyone on Long Beach Island.
Learn about Hurricane Sandy, flood insurance and Long Beach Island. Hurricane Sandy had a major impact on flood insurance rates and the LBI NJ real estate market. To understand flood insurance on Long Beach Island is to better understand the LBI real estate market.
The answer is Yes! You can still obtain both flood and homeowners insurance on LBI after Hurricane Sandy. Insurance is required for homes that have a mortgage and since many homes that are purchased in the LBI real estate market have a mortgage, it is essential that insurance policies are written to help the LBI real estate market move forward. What has changed (before Hurricane Sandy) is how policies are rated and priced.
Flood insurance is still being written on LBI after Hurricane Sandy. Flood insurance is a product of the federal government and the rates are therefore subsidized by the federal government. There are a few things to keep in mind when looking to buy flood insurance on LBI:
Pricing for flood insurance is now based primary on the elevation of a property above sea level. Elevation is calculated by adding together the natural ground elevation (most of LBI is about 2-5 feet above sea level on the bayside and 4-10 feet above sea level on the oceanside) and the elevation of the structure. The majority of Long Beach Island has been zoned in the "A" flood zone with an elevation of 8 feet above sea level. By adding the ground elevation and the structures elevation (most Cape Cods are about 2-4 feet high) it is easy to see that many homes on LBI are already at their Base Flood Elevation (BFE) and will not pay astronomical flood insurance rates. Additionally, rates are influenced by the number of flood vents a property has and the elevation of the grade.
Homeowners insurance is required for all homeowners who have a mortgage on their property and you can still purchase homeowners insurance on LBI after Hurricane Sandy. There are a few important things to keep in mind when looking at Homeowners Insurance on Long Beach Island After Hurricane Sandy:
Hurricane Sandy made landfall on Long Beach Island at the end of October 2012. The storm, which was unprecedented in both size and damage, created a new genre in the LBI real estate market: that of the storm damaged home. These homes which suffered substantial damage from flooding are sold essentially for land value with little to no consideration being given to the physical structure.
Hurricane Sandy made landfall on Long Beach Island at the end of October 2012 and while the storm has passed and most of Long Beach Island New Jersey has made a full recovery, there are still many questions on the minds of LBI residents and those looking to buy or sell real estate in the Long Beach Island NJ real estate market.
Many people dream of owning a home on Long Beach Island New Jersey however the LBI real estate market is expensive thus making it very important to recognize Buying Opportunities in the Long Beach Island NJ Real Estate Market. Regardless if you are looking for a single family home, a multi-family investment or a condominium, buying opportunities exist and knowing where to look and when to buy can save you considerable sums of money.