Willy Kahl LBI REALTY GROUP, Broker of Record-Oceanfront 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 OCEANFRONT NEWSLETTER MID YEAR 2012 OCEANFRONT STUDY Features: Oceanfront Sales Volume Continues to Increase and Supply vs. Demand Curve Values of Single Family Oceanfront Properties Average Sale Price Chart
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LBI Single Family Oceanfront Sales Spreadsheet Featured Properties Mortgage Rate Low Our Growing team Healthcare Laws Surtax
This study has been created for Long Beach Island homeowners and buyers as a guide to evaluate the current market values of single-family Oceanfront properties on Long Beach Island. I hope this information is of value to you!
Willy Kahl
Oceanfront Sales Volume Continue to Increase since 2009 There have been 17 Oceanfront single family home sales this first half of 2012. Provided that sales continue at the same rate there will be 34 sales during 2012. This will be an increase from last year's 23 single family oceanfront sales and substantially greater than the 14 total sales for the entire 2009 year! In addition, the number of oceanfront homes for sale has decreased from 61 in 2009 to 50 homes which are currently listed for sale. There are two key factors to prices leveling and hopefully soon to be slowly climbing. So far this year's supply vs. demand ratio is 0.34 compared to last year’s ratio of 0.21 (2010 was 0.22 for the 1st half and 0.31 for the second half). This is comparable to 1997 when prices began to slowly rise! 2009 however was one of the worst years with a supply vs. demand ratio of 0.115. That was the lowest it had been since I began documenting data in 1992. Currently, there are 50 oceanfront properties available for sale compared to the 55 available at this time last year. 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. OCEANFRONT SUPPLY VS. DEMAND CURVE 100 90 80 70 60 50 40 30 20 10 0
1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00
SOLD
AVAIL.
DEM/SUP
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Values of Single Family Oceanfront Properties Oceanfront sales and sales in general on LBI are better than most other regions in the United States. With property values in many areas of our country plummeting over 50% since the 2005 peak, LBI waterfront values have only decreased an average of 17- 20% since the 2005 record highs. The average price of an oceanfront sale this first half of 2012 is $1,688,073 and the average oceanfront property sold had 69 linear feet on the oceanfront. This average is extremely low, and I have concluded that of the 17 properties sold so far this year, 15 were 19 years of age or older, one was new and one was 8 years old. With so many old tear-down properties selling this first half of 2012, it is not fair to include the average price in analysis when in previous years the properties sold were much newer construction. So far this year there have been no tract sales (oceanfront to boulevard). 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 home is valued the following numbers should be multiplied by the oceanfront footage. My data shows that values of oceanfront properties were higher last year than back in 2004 based on average sales per linear foot. 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 is $32,061 for 2011. With the numerous teardowns which have sold this first half of the year, 2012 holds a value of only $24,465. 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 $24,465 (if older home) to $32,061(if newer home or if in great condition). From 1992 to present the average linear foot calculates to 72.12 feet of ocean frontage per sale. 2010, 2011 and the first half of this year have shown increasing sales activity and a higher supply/ demand ratio than in 2009. It appears the value of oceanfront properties may be leveling off and may even be slightly appreciating in value. The yearly sale prices vary more than anticipated because the type of oceanfront properties that have sold differ every year. 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 reasons. 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 many north end properties that sold. In 2010, the number of north end properties that sold were below average, bringing OCEANFRONT AVERAGE SALE PRICE average prices down. Last 4,000,000 year new construction in North Beach included an 3,500,000 entire tract which brought 3,000,000 our average value up a bit. The graph on the 2,500,000 right shows us these new 2,000,000 values and how they increased and then slightly 1,500,000 decreased over the years. 1,000,000 This half is below average since most oceanfront 500,000 sales were tear downs and 0 there have been no tract sales. SOUTH
CENTER
NORTH
AVG. Price
Price/avg.ft.
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LB I O C E A N F R O N T N E WS L E T T E R
SUMMER 2012
MID YEAR 2012 OCEANFRONT SALES from South to North TOWN
ADDRESS
SOUTH HOLGATE BEACH HAVEN (L.E.H.) BEACH HAVEN (L.E.H.) BEACH HAVEN (L.E.H.) HAVEN BEACH BEACH HAVEN PARK BRIGHTON BEACH MID 2012AVG.
4403 S. LBB 221 Nelson Ave. 905 S. Atlantic Ave. 2 E. Marine St. 118 E. Virginia Ave. 122 E. Muriel Ave (98th) 117 E. Connecticut Ave. (83rd)
DATE
LIST
SOLD
PRICE$
SELL
SELL/ FEET AGE ASSESS ASSESS ASSESS
PRICE $ LIST $ WTR
BUILD
LAND
TOTAL
SELL$/
#BEDR. #BATH
ASSESS$
6/11/12
1,750,000 1,500,000 86%
75
39
178,300 1,409,100 1,587,400
0.94
5.00
4.00
5/25/12
1,249,000 1,140,000 91%
50
27
122,300 1,266,000 1,388,300
0.82
4.00
3.00
3/21/12
1,395,000 1,312,500 94%
50
42
106,800 1,470,000 1,576,800
0.83
3.00
1.00
1/4/12
1,997,000 1,800,000 90%
100
42
131,000 1,296,000 1,427,000
1.26
5.00
3.00
3/29/12
2,499,000 2,250,000 90%
65
24
448,500 1,328,300 1,776,800
1.27
4.00
3.00
5/18/12
1,999,900 1,880,000 94%
80
27
302,400 1,501,500 1,803,900
1.04
5.00
3.50
5/24/12
1,499,000 1,296,000 86%
75
26
228,200 1,443,800 1,672,000
0.78
4.00
2.50
1,769,843 1,596,929 90%
71
32
216,786 1,387,814 1,604,600
1.00
4.29
2.86
6/11/12
1,375,000 1,312,500 95%
50
42
249,900 1,155,000 1,404,900
0.93
4.00
3.50
6/15/12
1,199,000 1,025,000 85%
40
72
214,100
924,000 1,138,100
0.90
4.00
2.00
4/3/12
2,095,000 1,825,000 87%
80
17
632,100 1,150,000 1,782,100
1.02
4.00
4.00
4/4/12
1,795,000 1,599,999 89%
50
8
504,300 1,150,000 1,654,300
0.97
4.00
3.50
5/3/12
2,279,000 2,125,000 93%
50
1
601,600 1,040,000 1,641,600
1.29
5.00
4.50
1/4/12
1,799,000 1,575,000 88%
80
62
137,400 1,325,500 1,462,900
1.08
4.00
2.00
6 SOLD IN CENTER 1,757,000 1,577,083 90%
58
34
389,900 1,124,083 1,513,983
1.04
4.17
3.25
7 SOLD IN SOUTH
CENTER BRANT BEACH BRANT BEACH SURF CITY SURF CITY SURF CITY SURF CITY MID 2012 AVG.
3509 Ocean Blvd. 3101 Ocean Blvd. 1 E. Division Ave. 1205 N. Ocean Ave. 6 N. 23rd St. 2411 N. Ocean Ave.
NORTH NORTH BEACH 1095-C LBB 14 E Cape HARVEY CEDARS May Ave 11 E. Atlantic HARVEY CEADRS Ave. 10 S. LOVELADIES Seaview Dr. MID 2012 AVG.
2/7/12
2,890,000 2,176,250 75%
100
19
816,900 2,462,500 3,279,400
0.66
4.00
3.50
1/6/12
1,649,000 1,530,000 93%
50
27
368,100 1,150,000 1,518,100
1.01
4.00
2.50
6/15/12
2,350,000 2,200,000 94%
100
19
430,300 1,843,000 2,273,300
0.97
4.00
3.00
1/12/12
2,500,000 2,150,000 86%
80
59
91,500 2,022,500 2,114,000
1.02
5.00
2.00
2,347,250 2,014,063 86%
83
31
426,700 1,869,500 2,296,200
0.88
4.25
2.75
1,901,171 1,688,073 89%
69
33
327,276 1,408,071 1,735,347
0.97
4.24
2.97
4 SOLD IN NORTH
MID MID 2012 AVG LBI 17 SOLD IN 2012
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 newsletter is an exclusive publication and cannot be reproduced without prior written permission from Egon Willy Kahl. ©
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FEATURED PROPERTIES Just Listed North Beach - Magnificent Oceanfront Property includes 100 feet of ocean frontage on an oversized extra deep lot! Enjoy unobstructed beach and ocean views from every room in this stunning contemporary home. This property is both private and tranquil, yet a quick walk to the center of Surf City. All bedrooms have panoramic ocean views and each include sitting area and ensuite bath with custom vanities, imported faucets and sinks. Master bedroom suite features his and her baths with marble floors, Corian shower, Whirlpool tub, walk in closets, and slider doors opening to a wraparound deck with views of ocean, bay and bridge. Gourmet kitchen features custom solid hickory cabinets, Corian countertops, as well as subzero and Thermador appliances. Expansive living area includes granite wet bar, gas fireplace, and Casablanca ceiling fans. Separate top floor bridge area overlooks ocean and bay and currently serves as home office space. There is also a two car garage plus ground level storage area. Additional amenities include central stereo, audio and visual centers with surround sound and built in speakers in entertainment. room, living room and master suite, interior elevator with access to all levels, two zone gas heat and central air and central vacuum. Exterior features include multiple fiberglass decks, two outside showers with dressing areas, brick pavers and landscaping with underground utilities. This is a quality built home custom designed by Gym Wilson. This home is well maintained. Shows beautifully and is being offered for the first time by the original owners. Ready for immediate occupancy. $2,849,000. LBI REALTY GROUP Exclusive Listing: Harvey Cedars Lagoonfront on oversized lot Spectacular Bay Views from this reversed living contemporary lagoon front home featuring decks galore, open living/ kitchen/ dining are with fireplace, gas heat and central air, nicely landscaped. $1,099,000.
30 year mortgage rate drops to another record low the lowest since long term mortgage data began in the 1950s! Mortgage buyer Freddie Mac tracking data currently shows the average rate on the 30 year loan fell to 3.56%. That's down from 3.62% last week and the lowest since long-term mortgage tracking began in the 1950s. The average rate on the 15-year mortgage, a popular refinancing option, dipped to 2.86% which is lower than last week's previous record of 2.89%. The rate on the 30 year fixed loan has fallen to or matched record low levels in 11 of the past 12 weeks. Still, the pace of home sales remains well below healthy levels in the U.S. Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by lenders. However, LBI is its own paradox! It appears that property values on LBI have reached rock bottom and are beginning to show signs of gradual improvement.
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LBI REALTY GROUP– OUR GROWING TEAM OF PROFESSIONALS It is with great pride and enthusiasm that I would like to update you on the progress our team at LBI Realty Group has recently made. As both Owner and Broker of Record, I am pleased to announce that in less than two years we have more than tripled the number of top producing agents that have joined our team, we have quadrupled the size of our office, and we are one of the leading offices on the Island in terms of business production! LBI Realty Group consists of 15 top producing realtors, with many other agents expressing interest in joining our team. We continually receive positive feedback from those within the industry as well as throughout the community. We look forward to serving both Sellers and Buyers with all of their real estate needs. Our years of experience, knowledge and dedication speak for itself when it comes to the number of satisfied Buyers and Sellers we have had the pleasure of bringing together. We are known on this Island to be true professionals in our industry. All of our agents are highly experienced and are here to serve you. Kevin Bergin and Kevin Farnung - This unique team (www.soldby2kevins.com) have years of success as top producing agents in real estate, with over 200 transactions and over 100 million dollars in sales. Specializing in Internet Marketing for Buyers, their data base includes over 10000 prospects all of whom receive daily information on newly listed properties. Walter Dombrowski is a Real Estate professional with over 13 years experience and over 300 sales transactions. Learn more about Walt and his knowledge of LBI Real Estate at www.soldonlbi.com. James Dooney - Long Beach Island's duplex and property investment specialist for over 33 years. Jim is the author of the LBI Duplex Newsletter, a newsletter dedicated to the LBI duplex market and as a result Jim has a vast prospect list of buyers anxious to purchase multi-family properties here on LBI. He holds the professional designations of Certified Commercial Investment Member (CCIM), Certified Property Manager (CPM) and Certified Distressed Property Expert (CDPE). Mary T. Dooney - came to LBI Realty Group with 36 years experience in real estate marketing and sales. A local area expert with knowledge of the communities, Mary holds the prestigious designation of Certified Residential Specialist. This designation is held by only 4% of Realtors throughout the United States. A proven multi-million dollar producer, her experience, marketing expertise and ability to focus on individual real estate needs makes her the ultimate resource when buying or selling a principal residence or a vacation home. Willy Kahl is LBI Realty Group's Waterfront Specialist with knowledge in CAFRA state water front rules and regulations, specializing in LBI Oceanfront properties since 1992! Willy writes the LBI oceanfront newsletter that is published and sent to over 2,300 Homeowners and Buyers here on LBI. Jerry and Lynda Hansen are an integral part of LBI real estate and are widely renowned for their success in the marketing and sales of luxury properties. Michelle DeGennaro is well known throughout Long Beach Island as an outstanding sales agent. With over 30 years of real estate experience and excellent communication skills, Michelle will lead you to your perfect LBI real estate home or investment property. Michael Walsh brings a unique combination of experience in real estate and finance with his devotion to provide excellent customer service to both Buyers and Sellers. Ede Wilk is a long time resident of LBI and has been listing and selling properties on the Island since 1981. Ede is a member of the Ship Bottom Land Use Board and prides herself on being an expert in the community in which she lives, works and serves . Kelly Gabriel has been a full time realtor for six years in the Manahawkin/Long Beach Island area. Kelly dedicates herself to her clients as though she was the one buying or selling the property. She has extensive marketing in place to promote listings and provide sellers with the best possible offer. Her team includes Trish Formica and Ed Ramaine. Trish specializes in working with Buyers. Trish is enthusiastic and professional and she can help you make the right choice for you! Glenn Burke is the newest Realtor to join our team. Glenn specializes in new construction development and sales. Kyle Loreaux, Christine Nelson and Ann Kahl are the support staff at LBI Realty Group.
Please visit my website at www.LBIsales.com to learn more about our agents, to request a Free Market Analysis, or to search properties currently for sale. The properties on the site are listed geographically, from North to South, which makes navigating the Island and focusing on an area simple.
FIRST CLASS PRESORTED U.S. POSTAGE PAID TOMS RIVER, NJ PERMIT NO. 77
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: WILLYKAHL@GMAIL.COM Office (609) 494-8900 Fax (609) 494-8901
WWW.LBISALES.COM
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!
Dependable Oceanfront Data Enclosed! Healthcare laws surtax could affect many LBI investment property sellers in 2013 Many investors on LBI will be affected by the 3.8% levy which will take effect on January 1, 2013. However the vast majority of homeowners who sell their primary residences next year will not be affected. Following is an example provided by the tax staff at the National Association of Realtors. A married couple has an adjustable gross income (AGI) of $325,000 and they sell their home at a $525,000 profit. Assuming they qualify, $500,000 of that gain is wiped off the slate for tax purposes. The $25,000 additional gain qualifies as net investment income under the healthcare law, giving them a revised AGI of $350,000. Since the law imposes the 3.8% surtax on the lesser amount of revised AGI exceeds the $250,000 threshold for joint filers or the amount of your taxable gain ($25,000), they will end up owing a surtax of $950 ($25,000 times 0.038). For LBI Investment property owners the 3.8% levy can be confusing. The taxable capital gains are far larger when selling a vacation home or income producing property because all the profits may be subject to the investment surtax. My advice is to speak with a tax professional for advice on your specific situation. It will be important to pull together documentation on the capital improvements made to the property and expenses connected with the property — including settlement or closing costs such as title insurance and legal fees — that increase the tax "basis" in order to lower capital gains.
LBI Property Searches-Best Deals Personalized For You I would be happy to set you up with automatic updates on LBI properties that interest you most. E-mail me at willykahl@gmail.com