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 WINTER 2015 OCEANFRONT STUDY
Features: Single Family Oceanfront Values Oceanfront Single Family Sales Data Oceanfront Sales Volume
Beach Replenishment Project Featured Properties Highest Priced Sale on LBI Great Flood Insurance News
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
Values of Single Family Oceanfront Property Appear to be Rising Slowly In 2013, the average oceanfront price on LBI had increased to an all time record high of $2,959,529! This over inflated price was partly due to the numerous sales of oceanfront property on the north end of the Island which increased values much higher than expected. In general, oceanfront property values have turned around and are beginning to appreciate once again! In 2014, the average oceanfront property sold was much smaller in size than those sold in 2013. There was an average of 84 feet of ocean frontage sold in 2013 versus the average in 2014 of 67 feet on the oceanfront. The average price of an oceanfront sale in 2014 had a value of $2,086,948 (vs. $1,851,048 average in 2012). The average oceanfront property sold also had 67 linear feet on the oceanfront (vs. 69 in 2012 and 84’ in 2013). Fifteen of the twenty-nine sales this first half of 2014 were tear down Oceanfront homes, bringing prices down a bit . 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 following 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. In 2014, we were back to $31,148 per linear foot, even with 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 $35,232 (if newer home in excellent condition with a deep lot and premier location). From 1992 to present the average linear foot calculates to 72.41 feet of ocean frontage per sale. The yearly sale prices vary more than anticipated because of the type of oceanfront properties that have sold. In 2006 many oceanfront homes that sold were new construction, bringing higher than expected values. In 2007 the majority of oceanfront properties that sold were teardowns, creating a decline in values. In 2008 the sale of oceanfront property in North Beach, Loveladies, and on oversized lots in Barnegat Light increased the average values for two reasons. The majority of homes were newly constructed and north end of the Island locations also hold the highest land values on LBI. These sales created a higher than average sale price for oceanfront properties than expected in 2008. In 2009, there were not any north end properties that sold. In 2010 the number of north end properties that sold were below average, bringing average prices down. In 2011, new construction in North Beach included an entire tract which brought our average value up a bit. In 2012 many tear downs sold along with just two new construction and one 5 years of age, bringing values down from 2011. In 2013 we hit an unrealistic high rate, where most properties sold were on the North end are in great condition, setting a record all time high average sale price! 2014 was a good year in general, and calculates out that oceanfront sales are doing well once again. I estimate that values are down about 10% since the 2005-2006 peak (better than the 25% that we were down a few years ago). Hence, we have increased about 15% since the low.
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LB I O C E A NFR O NT N E WS L E T T E R
W IN T E R 2 0 1 5
2014 YEAR END OCEANFRONT SALES from South to North TOWN
ADDRESS
DATE
LIST
SOLD
PRICE$
2501 S. LBB
8/15/14
3,695,000
3 11th St.
SOUTH HOLGATE BEACH HAVEN
SELL
SELL/
FEET
PRICE $
LIST $
WTR
AGE
3,480,000
94%
104
5
ASSESS
ASSESS
ASSESS
SELL$/
BUILD
LAND
TOTAL
ASSESS$
#BEDR.
#BATH
990,700
1,778,700
2,769,400
1.26
6
7.5
9/3/14
1,199,900
1,075,000
90%
65
64
80,200
1,350,000
1,430,200
0.75
5
1.5
211 E. So. 32nd BEACH HAVEN GARDENS St.
9/30/14
1,699,900
1,600,000
94%
40
58
464,400
924,000
1,388,400
1.15
4
2.5
BEACH HAVEN GARDENS 210 E. 28th St.
10/29/14
1,795,000
1,500,000
84%
40
19
399,100
831,600
1,230,700
1.22
4
2.5
THE DUNES
12505 Ocean Ave.
6/17/14
2,495,000
2,398,000
96%
60
6
505,800
1,270,500
1,776,300
1.35
4
3.5
THE DUNES
12405 Ocean Ave.
12/22/14
2,749,900
2,662,500
97%
60
4
518,600
1,270,500
1,789,100
1.49
5
5.5
HAVEN BEACH
112 E. Weldon Place
11/26/14
1,550,000
1,550,000
100%
65
34
185,100
1,131,900
1,317,000
1.18
4
2
PEAHALA PARK
128 E. Sand Dune Lane (90th)
11/19/14
1,098,000
999,000
91%
50
45
90,100
1,155,000
1,245,100
0.80
5
2.5
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
1,997,522
1,865,500
93%
62
28
404,578
1,239,556
1,644,133
1.13
4.56
3.39
BRIGHTON BEACH 2014 AVG.
9 SOLD IN
SOUTH
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
BRANT BEACH
7213 Ocean Blvd.
11/18/14
3,299,000
2,955,000
90%
53
0
720000
1,155,000
1,875,000
1.58
5.00
4.50
BRANT BEACH
7101 Ocean Blvd
8/11/14
4,499,000
4,200,000
93%
100
1
1057500
1,944,444
3,001,944
1.40
6.00
6.00
BRANT BEACH
6505 Ocean Blvd.
6/30/14
3,499,000
3,350,000
96%
50
7
687,300
1,166,600
1,853,900
1.81
5.00
5.00
BRANT BEACH
6215 Ocean Blvd.
10/24/14
1,795,000
1,650,000
92%
50
64
430,900
1,155,000
1,585,900
1.04
5.00
2.00
BRANT BEACH
5803 Ocean Blvd.
1/10/14
2,150,000
2,000,000
93%
100
71
120,000
1,547,700
1,667,700
1.20
4.00
2.50
BRANT BEACH
5503 Ocean Blvd.
5/5/14
2,695,000
2,470,000
92%
55
1
522,600
1,155,000
1,677,600
1.47
5.00
4.50
BRANT BEACH
5413 Ocean Blvd.
4/7/14
1,699,000
1,699,000
100%
75
77
143,400
1,443,800
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
SURF CITY
1817 Ocean Ave.
10/10/14
2,350,000
2,300,000
98%
60
51
804,980
1,122,035
1,927,015
1.19
4.00
3.00
2014 AVG.
11 SOLD IN
2,375,545
2,232,182
94%
64
35
493,294
1,278,132
1,771,425
1.26
5.09
3.59
CENTER
NORTH NORTH BEACH
1047-C LBB
11/5/14
3,499,000
3,499,000
100%
100
12
603,500
2,462,500
3,066,000
1.14
5.00
3.50
NORTH BEACH
1097-C
11/24/14
3,499,000
3,400,000
97%
100
11
784,848
2,763,749
3,548,597
0.96
4.00
5.50
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
14 E Salem Ave
11/17/14
1,795,000
1,600,000
89%
110
39
264,054
1,390,234
1,654,288
0.97
3.00
2.00
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
1813 Seaview Ave.
8/20/14
2,100,000
1,900,000
90%
75
30
422,798
1,572,590
1,995,388
0.95
4.00
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
BARNEGAT LIGHT
1505 Seaview Ave.
8/1/14
2,495,000
2,300,000
92%
50
14
583,300
1,160,900
1,744,200
1.32
4.00
3.50
2014 AVG.
9 SOLD IN
NORTH
2,250,667
2,130,889
95%
77
27
436,439
1,642,176
2,078,615
1.03
3.78
3.06
2014 AVG LBI
29 SOLD IN
2014
2,219,472
2,086,948
94%
67
30
448,117
1,379,139
1,827,256
1.14
4.52
3.36
WINTER 2015
PAGE 3
LB I O C E A NFR O NT N E WS L E T T E R
Oceanfront Sales Volume is Getting Stronger In 2014, there were 29 Oceanfront sales. Also the supply had decreased with 39 being the average number of single family ocean fronts for sale. In 2013 there were only 17 Oceanfront 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. For 2014, our supply vs. demand ratio is 0.34, 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 39 oceanfront properties available for sale. This ties 2012 and is close to a record low since 2005. 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.
Beach Replenishment Project Schedule Is Postponed to Year End 2015 The U.S. Army Corps of Engineers’ Philadelphia District awarded a contract on December 5, 2014 to the Great Lakes Dredge and Dock Company for $128 million to complete the initial construction of the Long Beach Island Coastal Storm Damage Reduction project in New Jersey. The work will involve dredging approximately eight million cubic yards of sand from an approved borrow area approximately three miles offshore of Long Beach Island. The sand will be pumped through a series of pipes onto the beaches within the municipalities of Long Beach Township, Ship Bottom, Beach Haven and a small section of Surf City over a length of 12.7 miles. The sand is then built into a dune and berm system designed to reduce potential damages to infrastructure, businesses, and homes that can occur from coastal storm events. In addition, the contract includes the construction of dune crossovers, placement of sand fencing, and dune grass plantings. The Army Corps will issue a Notice to Proceed to Great Lakes Dredge & Dock Company prior to the end of the year. At that time, Great Lakes will have 480 days to complete the awarded contract work. Work is expected to be completed by May 2016.
FEATURED OCEANFRONT PROPERTIES Superlative Reverse Living Oceanfront in Brant Beach. Breathtaking views from every room, 2 master suites, 2 oceanfront living areas both with wet bars with latest & greatest amenities $2,250,000.
100 feet on the Ocean. Outstanding opportunity to build a luxurious oceanfront with prestigious Little Egg Harbor Yacht Club location! Northern corner lot creating southern exposure and panoramic views $1,900,000.
Immaculate Reverse Living Oceanfront with Panoramic views in Beach Haven. Open living, kitchen and dining area featuring all the latest amenities, cathedral ceilings and built in cabinetry around the fireplace. $1,519,000.
Perfectly Maintained Reverse Living Oceanfront home with Panoramic Ocean Views. Built by Eric Johnson and designed by Jay Madden . One of Barnegat Light’s most prestigious locations. $3,399,000.
Highest Priced Sale of Property on LBI –Loveladies Tract Just Sold by LBI Realty Group!
Loveladies Tract- "Seaworthy", This home is on a magnificent full tract of oceanfront in the Estate section of Loveladies. Listed at $8,999,000 and sold by LBI Realty Group.
FIRST CLASS PRESORT MAIL 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! 27 YEARS OF LBI OCEANFRONT DATA ANALYSIS
Great News for LBI Homeowners Regarding Flood Insurance! An update to the Biggert Waters Act was revised with the introduction of The Homeowner’s Affordability Act of 2014. Flood insurance rates have now been grandfathered to roll over with the sale of a property rather than have an increase to non federal funded rates. This is a significant benefit for those wanting to sell a property that is below base flood elevation. Flood insurance rates are factored into the cost of ownership for most buyers. Since super storm Sandy, when the Biggert Waters Act was passed, many feared that flood insurance rates would ten-fold, an example being from $2,500 per year to $25,000 per year. The magnitude of such an increase in insurance costs could have deterred buyers from purchasing low lying properties as well as negatively impact property values on LBI. It is my understanding that flood insurance companies are able to charge a 25% increase on their premiums annually, until the insurance no longer is subsidized. However, the 25% increase did not appear on most homeowners policies for 2014, although many did have quite an increase in 2013.
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! Get the LBI Oceanfront 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! 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. ©