This study has been created for Long Beach Is-land homeowners and buyers as a guide to evalu-ate the current market values of single-family Bayfront properties on Long Beach Island. I hope this information is of value to you! Willy Kahl

2014 MID YEAR BAYFRONT STUDY

LBI BAYFRONT NEWSLETTER

Features:

Single Family Bayfront Values

Bayfront Single Family Sales Data

LBI is Back in Action

Sales Volume has Great Start

Supply vs. Demand Chart

Featured Properties

27 Years of Waterfront Analysis

Values of Single Family Bayfront Properties

Bayfront data varies so much that I have computed a more leveraged curve by calculating the price per

foot of bay frontage for single family bayfront properties and maximizing water frontage to 150 feet per lot (some

lots are double or triple edged on peninsulas, and a maximum was needed for a more accurate average). Using

this calculation, in 2012 the average bayfront sale was $1,535,751. In 2013 average price (based on linear foot)

increased to $1,864,899.

So far this year, the North end has suffered with sale prices. Many tear downs have sold for land value in

North Beach, Harvey Cedars, Loveladies and Barnegat Light during the first half of 2014. The North end has

averaged over $2.2 million since 2004 but is down to below $1.5 million this first half of 2014. Hence with the

North end having nine of the thirteen sales this half, our all around average in general is down. The average price

per foot so far this year is $1,583,865.

To determine bayfront property value the following numbers should be multiplied by the bayfront foot-

age. The average sale prices per linear foot each year are as follows: $19,697 in 2004, $26,818 in 2005, $22,318

in 2006, $23,933 in 2007, $22,659 for 2008, $17,578 for 2009, $20,510 for 2010, $22,524 for 2011 and back to

$18,960 for 2012 back up to $23,023 per linear foot for 2013, and due to many tear downs down to $19,041 this

first half of 2014. Of course, this average varies from town-to-town and also depends on condition of home and

depth of lot.

To calculate the current value of an average bayfront property by linear feet multiply the amount of bay-

front feet by $23,023 if newer and in good condition or $19,041 if older. From 2004 to present the average linear

foot calculates to 83.2 feet of bay frontage per sale (maximum of 150’ for peninsulas). For 2013 the average

price is $23,023 x 73 = 1,680,679. The average price of a bayfront sale in 2012 was $1,744,320 but those lots

averaged 92' of bay frontage creating a linear per foot sale of $18,960. This year the average so far is $19,041 x

83.1818 ft. = $1,583,865.

2010, 2011, 2012, and 2014 have proven to have increasing sales activity and a higher supply/demand

ratio than in 2009. 2013 was a little slow, mostly due to Sandy. It appears the value of bayfront properties have

leveled off and may even have gained slightly in value.

Sale prices vary because the variables of each property sold differ each year. In 2005, many bayfront

homes that sold were new construction which brought higher than expected values. In 2006, the majority of bay-

front properties that sold were teardowns which created a decline in values. In 2009, prices were lower than ex-

pected due to numerous corner lot sales with more than 125’ on the bay and an average age exceeding 30 years

(many were teardowns). In both 2010 and 2011, smaller lots with an average of 78.5 feet on the bayfront sold

which actually brought average values up. In 2013, many North end properties sold (10 out of the 18 sales were

in North Beach, Harvey Cedars, Loveladies, and Barnegat Light) bringing a slightly inflated average sales price.

So far this year many tear downs on the North end brought values down.

Willy Kahl LBI REALTY GROUP, Broker of Record-Bayfront Specialist

1919 Long Beach Blvd., Ship Bottom, NJ 08008

Cell (609) 709-1020 willykahl@gmail.com www.LBIsales.com

Office (609) 494-8900 Fax (609) 494-8901

LBI BAYFRONT NEWSLETTER MID 2014 PAGE 2

MID 2014 BAYFRONT SALES from South to North

For properties currently available for sale and for those under contract, please feel free to call me or visit www.lbisales.com. I would be happy to e-mail, mail, or fax current Multiple Listing computer detailed reports and/or generate automatic updates with your personal criteria!

Note: All Statistics are deemed reliable but not guaranteed. Data was retrieved from the Jersey Shore Regional Multiple Listing Service

Computer. This letter is not intended to solicit property currently listed. Egon Willy Kahl’s opinion has been stated throughout. This news-

letter is an exclusive publication and cannot be reproduced without prior written permission from Egon Willy Kahl. ©

LBI is Back in Full Action

The summer of 2013 was difficult for both homeowners and businesses on LBI since many properties affected

by Hurricane Sandy were still being renovated or rebuilt. The good news is that LBI is coming to life again this sum-

mer of 2014, evident by the large number of properties being elevated, renovated or completely rebuilt and the many

businesses that are reopening. The beaches are filled with vacationers enjoying all that summer offers here on our 18

miles of white sand with clean warm waters and sunny, carefree days. Business owners are reporting an increase in

revenue as many restaurants and shops are once again filled with patrons. With so much to offer to residents and visi-

tors alike, it is encouraging to see that our beautiful Island is once again a favorite vacation destination.

TOWN ADDRESS DATE LIST SELL SELL

$/ FEET AGE ASSESS ASSESS ASSESS SELL$/ #BEDR #BATH

SOUTH SOLD PRICE $ PRICE $ LIST$ WTR BUILD $ LAND $ TOTAL$ AS-

SESS$ NORTH BEACH

HAVEN 1912 Bay Terrace 3/14/14 2,699,000 2,450,000 91% 80 7 775,400 1,066,500

1,841,900 1.33 5.00 4.50

BRIGHTON BEACH 32 W. 85th St. 4/28/14 979,900 975,000 99% 75 52 85,000 987,500 1,072,500 0.91 4.00 2.00

2014 AVG 2 SOLD IN SOUTH 1,839,450 1,712,500 93% 78 30 430,200 1,027,000

1,457,200 1.18 4.50 3.25

CENTER

BRANT BEACH 5112-C LBB 2/21/14 2,889,000 2,770,000 96% 110 5 1,242,500 1,185,000

2,427,500 1.14 5.00 5.00

BRANT BEACH 3608C W. LBB 4/9/14 1,389,000 1,275,000 92% 100 28 221,500 1,185,000

1,406,500 0.91 4.00 3.00

SHIP BOTTOM 2317 Central Ave. 5/30/14 825,000 810,000 98% 80 54 157,900 563,000

720,900 1.12 3.00 3.00

2014 AVG 3 SOLD IN

CEN-

TER 1,701,000 1,618,333 95% 97 29 540,633 977,667

1,518,300 1.07 4.00 3.67

NORTH

NORTH BEACH 113 Roxie Ave. 4/22/14 2,000,000 1,860,000 93% 100 64 131,481 1,274,510

1,405,991 1.32 5.00 3.00

NORTH BEACH 1050E LBB 3/29/14 2,595,000 2,350,000 91% 100 20 820,875 1,380,471

2,201,346 1.07 4.00 3.50

HARVEY CEADRS 5624 Holly Ave. 5/23/14 1,100,000 925,000 84% 40 61 69,348 1,069,450

1,138,798 0.81 4.00 1.50

HARVEY CEDARS 46 Bucking-ham Ave. 6/6/14 1,995,000 1,850,000 93% 90 32 505,500 919,000

1,424,500 1.30 4.00 3.50

HARVEY CEDARS 19 Cedars Ave. 3/6/14 797,000 765,000 96% 25 8 308,873 363,541

672,414 1.14 4.00 3.00

HARVEY CEDARS 15 Cedars Ave. 5/23/14 1,195,000 1,200,000 100% 50 13 467,800 569,000

1,036,800 1.16 4.00 3.50

LOVELADIES 50F LBB 2/5/14 1,995,000 1,937,500 97% 120 30 443,400 1,507,500

1,950,900 0.99 6.00 4.50

LOVELADIES 4D W. LBB 5/29/14 1,400,000 1,300,000 93% 105 51 140,800 853,100

993,900 1.31 4.00 3.00

HIGH BAR HAR-BOR 34 Antioch Rd. 2/12/14 1,295,000 1,125,000 87% 60 22 335,690 942,761

1,278,451 0.88 3.00 2.50

2014 AVG 9 SOLD IN NORTH 1,596,889 1,479,167 93% 77 33 358,196 986,593

1,344,789 1.10 4.22 3.11

MID 2014 AVG LBI 14 SOLD IN

MID

2014 1,653,850 1,542,321 93% 81 32 407,576 990,452

1,398,029 1.10 4.21 3.25

MID 2014 PAGE 3

Bayfront Sales Volume is Having a Great Start this 1st Half

LBI BAYFRONT NEWSLETTER

FEATURED PROPERTIES

So far this year, we have had 14 bayfront sales in the first 6 months of 2014. There were 18 bayfront single

family home sales during the entire 2013 year. There were a total of 21 Bayfront Single family home sales in 2012,

17 single family bayfront sales in 2011, 23 in 2010, and 16 total sales in 2009. Currently there are five more bayfront

single family homes under contract. However, the number of single family bayfront properties for sale (supply) has

increased from 42 average in 2013 to currently 52..

I calculate our supply to demand curve by dividing the number of bayfront properties sold in the latest half

year period by the amount of bayfront properties currently for sale. These are two key factors to prices stabilizing with

values on the rise in the near future. So far this 1st half, our supply vs. demand ration is .27. For 2013 our supply vs.

demand ratio was .22. The 2012 year's supply to demand ratio was .25 compared to 2011 ratio of .19. This is slightly

better than in 2009 which was one of the lowest with a supply vs. demand ratio of 0.17. I feel this ratio will continue

to gain as time goes on and sales volume increases.

Trends relating to bayfront and oceanfront appreciation and depreciation are similar. I have oceanfront data

as far back as 1992 and bayfront data beginning in 2004. During 2002 supply vs. demand ratio was the highest in 21

years at 1.09 for oceanfront sales. Our record low of 15 oceanfront homes available on the market was in 2002. Our

high was 101 oceanfront homes available in 1993. There are approximately 1100 oceanfront homes and 1000 bayfront

homes on LBI. Oceanfront sales are showing us a quicker recovery and I believe bayfront sales should follow

soon!

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BAYFRONT SUPPLY VS. DEMAND CURVE

SOLD AVAIL.

BRANT BEACH BAYFRONT

On an oversized lot overlooking the bay

with stunning panoramic views and

sunsets. Spacious master bedroom with

full master bath. Two additional bed-

rooms. Oversized great room plus an

office or fourth bedroom. Beautifully

landscaped. Large bayfront deck featur-

ing a hot tub, outdoor bar and dining

overlooking a deep water large dock

with riparian grant. Vinyl Bulkhead.

Riparian Grant. $999,900.

SHIP BOTTOM BAYFRONT

Completely renovated Bayfront Ranch,

open living kitchen dining area, 3 bed-

rooms, two full baths, Cathedral ceilings.

Renovations include new kitchen, appli-

ances, baths, flooring, decks, vinyl siding,

windows, condensers, and furnace. Beau-

tifully landscaped, 50 on the bay, bulk-

headed and deeded Riparian Grant. Fin-

ished 1168 sq. foot garage, Sunsets All

Year Long - Spectacular Views!

$849,900.

BEACH HAVEN PARK BAYFRONT

Oversized 11,000+ sq. ft. Bayfront lot!

Tremendous Views, Nice deep water

sheltered dock with Riparian Grant. Sun-

sets galore from this bayfront like loca-

tion, with a quick walk to the ocean.

Large cape has been gutted and re-

mediated and being sold "as is", in ground

pool is also "as is", rebuild or design your

new Beach House on the

bay! $1,399,000.

Dependable Bayfront Data Enclosed! For properties currently available for sale and those under contract, please feel free to call or email me. I’ll be happy to e-mail, mail, or fax current Multiple Listing Computer detailed reports!

Willy Kahl’s Bayfront Newsletter Egon Willy Kahl / Broker of Record LBI Realty Group 1919 Long Beach Blvd. Ship Bottom, NJ 08008

Cell (609) 709-1020 EMAIL: WILLYKAHL@GMAIL.COM Office (609) 494-8900 Fax (609) 494-8901

WWW.LBISALES.COM

FIRST CLASS

PRESORT MAIL

U.S. POSTAGE

PAID

TOMS RIVER, NJ

PERMIT NO. 77

27 YEARS OF LBI WATERFRONT DATA ANALYSIS

Dependable Bayfront Data Enclosed!

In 1987, the Waterfront sales market had peaked on LBI. Six and seven years later ,I was sell-ing waterfront homes for approximately 25% less than the 1987 climatic sales market. Then Waterfront land began appreciating slowly from 1992 to 1998. In that time period, the average waterfront home increased a total of 24%. Over the next seven years (1999-2006), they in-creased another 329% - bringing total appreciation up 353% from the low of 1992 to the high of 2006! The average oceanfront value in 1992 was $553,844 and had peaked in 2006 to $$2,508,891. (Multiplied by 453%, subtracting the initial price brings us up 353%). I feel history is repeating itself with approximate timing, appreciation & depreciation. We have already experienced the seven or so years of a depreciating LBI home sales market from the 2006 peak. From the peak, values were down approximately 20% on oceanfront and ap-proximately 30% on bayfronts. Oceanfronts are slowly going back up in value and bayfronts should follow soon . Most Buyers are more likely to purchase a property if the Seller is asking a fair price re-flective of today’s market value. These buyers are excited that they are able to afford a vacation home on LBI! With attractive mortgage interest rates and competitive asking prices, along with a variety of properties to choose from, it’s a great time to buy or sell on LBI!

Get the LBI Bayfront Newsletter before it hits the press! Please e-mail Willy Kahl at willykahl@gmail.com and tell him you prefer these newsletters via e-mail today!