lbi oceanfront newsletter summer 2014 pdf

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 Oceanfront properties on Long Beach Island. I hope this information is of value to you! Willy Kahl

2014 MID YEAR OCEANFRONT STUDY

LBI OCEANFRONT NEWSLETTER

Features:

Single Family Oceanfront Values

Oceanfront Single Family Sales

Data

LBI is Back in Action

Oceanfront Sales Volume

Supply vs. Demand Chart

Featured Properties

27 Years of Data Analysis

Values of Single Family Oceanfront Property Appears to be Rising Slowly

In 2013, the average oceanfront price on LBI had increased to an all time record high of $2,959,529 during

2013! This over inflated price was partly due to the numerous sales of oceanfront property on the north end of the Is-

land which increased values much higher than expected. In general oceanfront property values have turned around and

are beginning to appreciate once again!

During the 1st half of 2014, the average oceanfront property sold has been much smaller in size than those sold

last year. We had an average of 84’ of ocean frontage sold in 2013 versus our average this year of 64 feet on the

oceanfront.

The average price of an oceanfront sale this 1st half of 2014 has a deflated value of $1,834,692 (vs. $1,851,048

average in 2012). The average oceanfront property sold also had 64 linear feet on the oceanfront (vs. 69 in 2012 and

84’ in 2013). Seven of the thirteen sales this first half of 2014 were tear down Oceanfront homes, bringing prices

down tremendously.

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

of ocean frontage for single family oceanfront properties. To see how much an oceanfront property is valued the fol-

lowing numbers should be multiplied by the oceanfront footage. The average sale prices per linear foot each year are

as follows: $7,662 in 1992, $29,069 in 2004, $33,466 in 2005, $34,709 in 2006, $29,618 in 2007, $33,971for 2008,

$31,966 for 2009, $30,102 for 2010 and $32,061 for 2011. With the numerous teardowns which have sold, 2012 held a

value of only $26,827 per linear foot. 2013 increased to a record high of $35,232 per linear foot. So far this year we

are back to $28,667 per linear foot, due to so many tear downs selling for land value. Of course this average varies

from town-to-town, condition of home, and depth of lot.

To calculate the current value of an average oceanfront property multiply the amount of oceanfront feet by

$26,826 (if older home) to $35,232(if newer home in excellent condition with a deep lot and a tranquil location). From

1992 to present the average linear foot calculates to 72.28 feet of ocean frontage per sale.

The yearly sale prices vary more than anticipated because of the type of oceanfront properties that have sold.

In 2006 many oceanfront homes that sold were new construction, bringing higher than expected values. In 2007 the

majority of oceanfront properties that sold were teardowns, creating a decline in values. In 2008 the sale of oceanfront

property in North Beach, Loveladies, and on oversized lots in Barnegat Light increased the average values for two rea-

sons. The majority of homes were newly constructed and north end of the Island locations also hold the highest land

values on LBI. These sales created a higher than average sale price for oceanfront properties than expected in 2008. In

2009 there were not any north end properties that sold. In 2010 the number of north end properties that sold were be-

low average, bringing average prices down. In 2011, new construction in North Beach included an entire tract which

brought our average value up a bit. In 2012 many tear downs sold along with just two new construction and one 5

years of age, bringing values down from 2011. The first half of 2013 we were back up a bit, which is great consider-

ing mostly teardowns have sold, and proves values are once again appreciating. The second half shows an unrealistic

rate, where most properties sold were on the North end are in great condition, setting a record all time high average

sale price!

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

1919 Long Beach Blvd., Ship Bottom, NJ 08008

Cell (609) 709-1020 [email protected] www.LBIsales.com

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

LBI OCEANFRONT NEWSLETTER MID 2014 PAGE 2

MID 2014 OCEANFRONT 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. ©

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$

THE DUNES 12505 Ocean Ave. 6/17/14 2,495,000 2,398,000 96% 60 6 505800 1270500

1,776,300 1.35 4 3.5

BRIGHTON BEACH 119 E. New York Ave. 3/10/14 1,695,000 1,525,000 90% 75 13 407,200 1,443,800

1,851,000 0.82 4.00 3.00

2014 AVG. 2 SOLD IN SOUTH 2,095,000 1,961,500 94% 68 10 456,500 1,357,150

1,813,650 1.08 4.00 3.25

CENTER

BRANT BEACH 7213 Ocean Blvd. 1/29/14 1,195,000 1,130,000 95% 50 50 255,400 1,155,000

1,410,400 0.80 4.00 4.00


1,853,900 1.81 5.00 5.00


1,667,700 1.20 4.00 2.50


1,677,600 1.47 5.00 4.50


1,587,200 1.07 7.00 3.00

SURF CITY 4 Division Ave. 4/17/14 1,100,000 1,075,000 98% 60 55 182,750 1,234,871

1,417,621 0.76 6.00 2.00

SURF CITY 301 E. Ocean Ave. 5/22/14 1,850,000 1,725,000 93% 50 8 501,400 980,000

1,481,400 1.16 5.00 3.00

2014 AVG. 7 SOLD IN CENTER 2,026,857 1,921,286 95% 63 38 344,693 1,240,424

1,585,117 1.21 5.14 3.43

NORTH

HARVEY CEDARS

13 East Cape May Ave. 1/31/14 1,195,000 1,135,000 95% 50 26 268,818 1,148,549

1,417,367 0.80 3.00 2.50

HARVEY CEDARS 12-A E. Essex Ave. 6/27/14 1,899,000 1,845,000 97% 55 21 346,500 1,135,300

1,481,800 1.25 4.00 3.00

HARVEY CEDARS 13 East 85th St. 5/22/14 2,725,000 2,500,000 92% 100 34 459,735 1,984,861

2,444,596 1.02 3.00 2.50

BARNEGAT LIGHT 1507 Seaview Ave 1/20/14 1,049,000 999,000 95% 50 57 194,400 1,160,900

1,355,300 0.74 4.00 2.50

2014 AVG. 4 SOLD IN NORTH 1,717,000 1,619,750 94% 64 35 317,363 1,357,403

1,674,766 0.97 3.50 2.63

2014 AVG LBI 13 SOLD IN MID 2014 1,942,000 1,834,692 94% 64 33 353,485 1,294,375

1,647,860 1.11 4.46 3.15

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.

MID 2014 PAGE 3

Oceanfront Sales Volume is Back to Normal

LBI OCEANFRONT NEWSLETTER

FEATURED PROPERTIES

So far this year, we have had 13 Oceanfront sales in the first six months. Also the supply has been fairly

steady with 49 being the average number of single family ocean fronts for sale. Last year, there were only 17 Ocean-

front single family home sales the entire year, partially due to Sandy.

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

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

with values on the rise in the near future. This 2014 first half, our supply vs. demand ratio is 0.27, much better than

our 2013 supply vs. demand ratio of 0.185. I feel this ratio will gain quickly as time goes on and sales volume rises

once again.

Currently, there are 48 oceanfront properties available for sale, a little more than 2013 where the was 46 avail-

able. Also more than the 38 available in 2012, but less than the 55 available at this time 2011. There were 59 homes

listed for sale during the first half of 2010. Our record low of 15 oceanfront homes on the market was in 2002. Our

high was 101 oceanfront homes available in 1993. There are approximately 1100 oceanfront homes on LBI.

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

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OCEANFRONT SUPPLY VS. DEMAND CURVE

SOLD AVAIL.

DEM/SUP

BRANT BEACH OCEANFRONT -Superlative Reversed Living Oceanfront,

Breathtaking Views from every room, two master suites, two separate ocean-

front living areas both with wet bars and counters, latest & greatest amenities,

spectacular top floor open kitchen/dining/living, area with wet bar and gas fire-

place. Three levels of spacious fiberglass decks including rooftop deck. Granite

kitchen and wet bar counters, tile and hard wood flooring, brick pavers, cedar

shake impression vinyl siding, professionally landscaped, two finished outside

showers, master baths include jetted tubs, tastefully furnished, rentals exceed

$120,000 this year. No Sandy damage, with terrific dune structures, a must see!

$2,250,000.

NORTH BEACH OCEANFRONT -80 feet on the Ocean plus a 20 foot ease-

ment creating the feeling of 100 feet on the Oceanfront! Guarded Beach, Quick

walk to Surf City, tranquil location. Well Maintained 3 Bedroom, 2 Bath, ranch

with open oceanfront living, kitchen, dining area and fireplace. CAFRA permits

are completed. Part of North Beach Estates, with deeded bay access and dock

with slip could be yours also($350/year). Current CAFRA footprint is approxi-

mately 35 x 40.5 for structure plus larger footprint then existing oceanfront

decks. Enjoy this adorable ranch for the summer and have plans to build your

dream home soon! $1,770,000.

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

Cell (609) 709-1020 EMAIL: [email protected] Office (609) 494-8900 Fax (609) 494-8901

WWW.LBISALES.COM

FIRST CLASS

PRESORT MAIL

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PAID

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PERMIT NO. 77

27 YEARS OF LBI OCEANFRONT DATA ANALYSIS

Dependable Oceanfront Data Enclosed!

In 1987, the Oceanfront sales market had peaked on LBI. Six and seven years later I was selling oceanfront homes for approximately 25% less than the 1987 climatic sales mar-ket. Then Oceanfront land began appreciating slowly from 1992 to 1998. In that time period, the average oceanfront home increased a total of 24%. Over the next seven years (1999-2006), they increased 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 Oceanfront Newsletter before it hits the press! Please e-mail Willy Kahl at [email protected] and tell him you prefer these newsletters via e-mail today!

lbi oceanfront newsletter summer 2014 pdf

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