Willy Kahl LBI Realtor-Oceanfront & Bayfront Specialist
RE/MAX of Long Beach Island 3 3 0 W e st 8t h S t r e et S h i p B o t t o m , N J 0 80 0 8
(609) 709-1020 — Cell Phone Email: willykahl@gmail.com w w w. l b i s a l e s . c o m
LBI OCEANFRONT AND BAYFRONT NEWSLETTER WINTER 2010
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2009 YEAR END WATERFRONT STUDY Features: Featured Properties Oceanfront 2009 Average Sale Prices Bayfront 2009 Average Sale Prices LBI Single Family Oceanfront
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Sales Spreadsheet and chart
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LBI Single Family Bayfront Sales Spreadsheet and chart Supply vs. Demand Curve Great Opportunities for LBI Buyers
This study has been created for Long Beach Island homeowners and buyers as a guide to evaluate the current market values of singlefamily Waterfront properties on Long Beach Island. I hope this information is of value to you! Willy Kahl
Introducing www.lbisales.com
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Easily search properties for sale on LBI. Towns are geographically listed from the north end of LBI to the south end, with the ability to select an individual town, or focus on all of LBI. Price range, footage of waterfront desired, oceanfront, bayfront, lagoonfront, oceanblock, oceanside, bayblock, bayside, number of bedrooms, number of bathrooms, age of property, and size of property are all selection criteria that one can easily choose.
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The website includes this Waterfront Newsletter and the statistics. If you prefer to go green and view these newsletters online, please register at my site: www.lbisales.com, and I will be happy to e-mail these letters to you.
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LBI has six municipalities, broken into 21 towns. View the map and layouts with details on street names.
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Find current mortgage rates along with an easy to use mortgage calculator
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LB I O C E A N F R O N T A N D B A Y F R O N T N E WS LE T T E R
WI N T E R 2 0 1 0
Average Sale Price Statistics of Oceanfront Property for 2009 Data shows that values of oceanfront properties have fallen, based on average sales per linear foot. The average sale prices per linear foot each year are as follows: $2,114,738 in 2004, $2,434,611 in 2005, $2,525,057 in 2006, $2,154,682 in 2007, $2,471,368 for 2008, and $2,327,658 for 2009. If you have interest in viewing the complete statistics of these values please refer to “Waterfront Statistics” under the “FREE Newsletter” menu tab located on my newly designed web site www.lbisales.com. The types of oceanfront properties that have sold vary each year, causing the sales market to fluctuate since values are not based on sales of comparable oceanfront properties. For example in 2006, many oceanfront homes that sold were new construction bringing higher values than expected. In 2007, the majority of oceanfront properties that sold were teardowns, creating a greater decline in values than anticipated. 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 the north end location also holds the highest land values on LBI. These sales created a higher than average sale price for oceanfronts than expected in 2008. Once again, in 2009, we have North end properties selling. Surf City is breaking the curve for oceanfronts in the center of the Island (no single-family sales in Ship Bottom and Brant Beach). With only fourteen oceanfront sales in 2009, it is hard to see what values have really done. With so many sales in Surf City, the average sale price for 2009 was higher than normal. In general, the values in most LBI towns have declined approximately 15%-20% for ocean front property since its peak in 2004-2005. Surf City, however, continues to demand high prices, which helps raise oceanfront statistics for the entire Island. The current frontage average along the ocean is 72.75 feet, which includes all of the oceanfront sales since 1992. The graph (on page 3) shows us these new values and how they have stabilized over the past five years. It also shows us the values without calculating the per foot value. Average Sale Price Statistics of Bayfront Property for 2009 For property on the bay, the data shows that values have decreased from 2005 to present based on average sales price. The average sale prices each year are as follows: $1,575,763 in 2004, $2,413,619 in 2005, $1,718,470 in 2006, $1,986,444 in 2007, $1,971,347 for 2008, and $1,669,938 for 2009. If you have interest in viewing the complete statistics of these values please refer to “Waterfront Statistics” under the “FREE Newsletter” menu tab located on my newly designed web site www.lbisales.com. The 2009 average bayfront sale price appears to be showing us how much we have actually depreciated since the peak years of 2004-2005. The average price has declined approximately 20% since those peak years. The volume of sales during 2009 was consistent with those of 2008 on bay front property. For greater detail of oceanfront and bayfront homes that have sold this year, see page 3 and 4 of this report which is a spreadsheet created from the South end to the North end of LBI. For properties currently available for sale and for those under contract, please feel free to call me. I would be happy to e-mail, mail, or fax current Multiple Listing Computer detailed reports.
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WI N T E R 2 0 1 0
LB I O C E A N F R O N T A N D B A Y F R O N T N E WS LE T T E R
LBI 2009 OCEANFRONT SALES from South to North ADDRESS
TOWN SOUTH
DATE
LIST
SOLD
PRICE
SELL
SELL/ FEET AGE ASSESS ASSESS ASSESS
PRICE $ LIST $ WTR
BUILD
LAND
TOTAL
SELL$/ #BEDR. #BATH ASSESS$
HOLGATE
5309 S. LBB
12/18/09 1,395,000 1,312,000 94%
40
24
288,800
924,000 1,212,800
1.08
4.00
3.00
HOLGATE
4407 LBB
11/24/09 1,825,000 1,600,000 88%
78
38
209,600 1,478,400 1,688,000
0.95
4.00
3.50
210 E. 25th 12/29/09 1,999,000 1,700,000 85% St. 12405 Ocean 6/3/09 1,795,000 1,700,000 95% Ave. 4 SOLD IN SOUTH 1,753,500 1,578,000 90%
98
31
80,200 1,270,500 1,350,700
1.26
4.00
2.50
60
28
114,200 1,270,500 1,384,700
1.23
4.00
2.00
69
30
173,200 1,235,850 1,409,050
1.12
4.00
2.75
SPRAY BEACH THE DUNES 2009 AVG CENTER SURF CITY
5 N 10th St.
1/30/09 2,495,000 2,200,000 88%
50
12
403,200 1,000,000 1,403,200
1.57
4.00
3.50
SURF CITY
1017 Ocean
11/9/09 2,699,000 2,400,000 89%
50
20
439,600 1,000,000 1,439,600
1.67
5.00
4.00
SURF CITY
1109 N 2/19/09 3,695,000 3,200,000 87% Ocean Terrace 1605 Ocean 6/12/09 2,190,000 1,800,000 82% Ave. 4 SOLD IN CENTER 2,769,750 2,400,000 87%
70
1
945,800 1,600,000 2,545,800
1.26
5.00
7.00
40
1
403,820 1,035,000 1,438,820
1.25
4.00
3.50
53
9
548,105 1,158,750 1,706,855
1.41
4.50
4.50
SURF CITY 2009 AVG NORTH
NORTH BEACH 1035C LBB
12/29/09 2,690,000 2,690,000 100%
100
42
66,200 2,462,500 2,528,700
1.06
3.00
2.50
NORTH BEACH 1055A LBB
12/18/09 2,500,000 2,150,000 86%
100
69
105,000 3,461,500 3,566,500
0.60
4.00
3.00
NORTH BEACH 1057C LBB
9/11/09 4,975,000 4,400,000 88%
100
2
668,900 2,462,500 3,131,400
1.41
7.00
4.50
HARVEY CEDARS 12 E 68th St.
6/12/09 2,190,000 1,950,000 89%
64
39
432,100 1,793,000 2,225,100
0.88
4.00
3.00
100
24
446,600 2,462,500 2,909,100
1.22
6.00
4.00
63
42
177,200 2,131,500 2,308,700
0.69
5.00
2.00
3,039,000 2,723,333 90%
88
36
316,000 2,462,250 2,778,250
0.98
4.83
3.17
2,594,786 2,303,714 89%
72
27
341,516 1,739,421 2,080,937
1.11
4.50
3.43
LOVELADIES
8 E Arts Lane 3/16/09 3,980,000 3,550,000 89%
BARNEGAT LIGHT 17 E 24th St.
6/22/09 1,899,000 1,600,000 84%
6 SOLD IN NORTH
2009 AVG
2009 AVG LBI
14 SOLD IN 2009
OCEANFRONT AVERAGE SALE PRICE PER FOOT 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 SOUTH
CENTER
NORTH
AVG. Price
Price/avg.ft.
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LB I O C E A N F R O N T A N D B A Y F R O N T N E WS LE T T E R
WI N T E R 2 0 1 0
LBI 2009 BAYFRONT SALES from South to North TOWN
ADDRESS
SOUTH N. BEACH HAVEN 1507 EaglesBEACH HAVEN GARDENS HAVEN BEACH HAVEN BEACH HAVEN BEACH BEACH HAVEN PARK BEACH HAVEN PARK BRANT BEACH 2009 AVG
wood (15th St) 100 W. South 33rd St.
DATE
LIST
SELL
SELL FEET AGE ASSESS ASSESS ASSESS SELL$/ #BEDR. #BATH $/ SOLD PRICE $ PRICE $ LIST$ WTR BUILD $ LAND $ TOTAL$ ASSESS $ 9/18/09 1,395,000 1,245,000 89% 50 45 121,700 615,000 736,700 1.69 5.00 3.50 9/909
850,000
850,000 100%
60
29
132,700 693,000
825,700
1.03
4.00
2.00
95%
270
45
131,100 1,343,000 1,474,100
1.75
5.00
3.00
90%
71
58
86,700 955,900 1,042,600
0.95
4.00
2.00
93%
50
54
896,200
1.19
4.00
2.00
88%
189
9
2,283,600 1,380,700 3,664,300
0.86
5.00
6.00
24 Hideaway Dr. 10/7/09 2,995,000 2,750,000 92%
60
1
915,100 1,380,700 2,295,800
1.20
5.00
6.00
206 W. Kimberly 7/30/09 1,595,000 1,400,000 88% Ave (59th) 8 SOLD IN SOUTH 1,922,250 1,753,125 91%
55
7
340,300 829,500 1,169,800
1.20
5.00
2.00
101
31
514,675 998,475 1,513,150
1.16
4.63
3.31
296,000 637,000
933,000
0.86
4.00
2.50
35 W Mississippi 8/3/09 2,699,000 2,575,000 Ave (116th) 11412 Sunset 12/18/09 1,099,000 990,000 Terrace 11304 Sunset 11/6/09 1,150,000 1,065,000 terrace 30 Hideaway 6/1/09 3,595,000 3,150,000 Drive
106,200 790,000
CENTER SHIP BOTTOM
11 Robert Dr.
1/23/09
799,999
800,000 100%
65
23
SHIP BOTTOM
601 Shore Ave
12/4/09 2,495,000 1,850,000 74%
133
7
1,095,500 1,318,300 2,413,800
0.77
5.00
6.50
SURF CITY
440 N. 3rd St.
5/15/09 1,499,000 1,310,000 87%
84
26
348,400 913,400 1,261,800
1.04
4.00
3.00
2009 AVG
3 SOLD IN
CENTER 1,598,000 1,320,000 83%
94
19
579,967 956,233 1,536,200
0.86
4.33
4.00
HARVEY CEDARS 5506B Holly Ave 7/24/09 2,175,000 1,900,000 87%
50
21
500,000 1,353,800 1,853,800
1.02
4.00
3.50
HARVEY CEDARS 8402 Bay Ter-
150
59
264,900 1,821,500 2,086,400
0.69
4.00
3.00
138
44
391,200 1,948,000 2,339,200
0.77
4.00
3.00
100
37
884,300
1.90
4.00
2.00
210
14
268,700 966,000 1,234,700
1.54
5.00
4.00
NORTH
4/30/09 1,699,000 1,450,000 85%
race HARVEY CEDARS 8602 Jamaica 7/13/09 1,800,000 1,800,000 100% Lane 360 Dusty Miller 12/11/09 1,679,000 1,684,000 100% LOVELADIES Dr. HIGH BAR HAR- 66 Adrian Rd. 5/14/09 2,195,000 1,900,000 87%
70,500 813,800
BOR 2009 AVG
5 SOLD IN
NORTH
1,909,600 1,746,800 91%
130
35
299,060 1,380,620 1,679,680
1.04
4.20
3.10
2009 AVG LBI
16 SOLD IN
2009
1,857,500 1,669,938 90%
108
30
459,538 1,109,975 1,569,513
1.06
4.44
3.38
BAYFRONT AVERAGE SALE PRICE 4,000,000 3,500,000 3,000,000
SOUTH
2,500,000
CENTER
2,000,000
NORTH
1,500,000
AVG. Price
1,000,000 500,000 0 2004
2005
2006
2007
2008
2009
Note: All Statistics are deemed reliable but not guaranteed. Data was retrieved from the Greater N.J. Regional Multiple Listing Service Computer. This letter is not intended to solicit property currently listed. Willy Kahl’s opinion has been stated throughout. This newsletter is an exclusive publication and cannot be reproduced without prior written permission from Willy Kahl. ©
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LB I O C E A N F R O N T A N D B A Y F R O N T N E WS LE T T E R
WI N T E R 2 0 1 0
SUPPLY VS. DEMAND Statistics Simple economics states that if there is an abundance of a product (waterfront homes) and few consumers (Buyers) values will descend. It is when we reach an equilibrium that values become stable. When the product is scarce and the demand is high, values increase. During 2002, supply vs. demand ratio was the highest in 21 years, at 1.09 for oceanfront sales. The current supply vs. demand ratio of 0.115 on oceanfront is the lowest it has been since I began documenting data in 1992. Bayfront property seems to be consistent with last year at 0.17. This is comparable to the ratios back in 1992 thru 1994, when prices were fairly stable and took a few years before seeing any appreciation. This is a substantial decrease in general and has proven sales have slowed down these last few years. Currently, there are 63 oceanfront and 45 bayfront single-family homes available for sale on LBI. Our record low of 15 oceanfronts on the market was in 2002. Our high was 101 oceanfront homes available in 1993. The number of oceanfront sales has decreased from a high of 50 in 1999 to 23 in 2007, 21 in 2008 and only 14 in 2009. With this minimal number of sales versus the number of waterfront properties available for sale increasing, it appears that prices may continue to decline. The most desirable and competitively priced waterfront homes will sell. Those that are overpriced will not.
Great Opportunities for LBI Buyers While Mortgage Rates Are Low We are beginning 2010 with mortgage rates about one-half of a percent higher then January 2009. The government hold down of long-term mortgage rates is slowly coming to an end. Mortgage rates are expected to end this year at higher levels. It certainly is a great time to purchase a property on LBI and lock in with one of the lowest long-term interest rates ever available! With rates on an upward trend, even if prices do fall a slight bit more, buying a home this year will most likely generate a lower monthly payment then buying the same property next year! Customers purchasing in this buyers’ market should be able to find a home of their dreams!
Two North Beach Oceanfront Properties Sold by Willy Kahl Multiple offers from different Buyers were presented to me on both of these North Beach oceanfront properties, resulting in a sale price higher than either Seller anticipated! Outstanding marketing techniques prove effective once again.
Willy Kahl’s Waterfront Newsletter
FIRST CLASS PRESORTED U.S. POSTAGE PAID TOMS RIVER, NJ PERMIT NO. 77
Willy Kahl/Broker Associate LBI Top Producing Realtor Specializing in Oceanfront & Bayfront Homes RE/MAX of Long Beach Island 330 West 8th St. Ship Bottom, NJ 08008
Cell Phone (609) 709-1020 Website: www.lbisales.com Email: willykahl@gmail.com “Willy Kahl-Your Key to LBI Real Estate Sales”
Dependable Waterfront Data Enclosed! For properties currently available for sale and those under contract, please feel free to call me. I’ll be happy to e-mail, mail, or fax current Multiple Listing Computer detailed reports!
Featured Properties Oceanfront in Beach Haven Crest Panoramic views of the beach and surf from this newly remodeled oceanfront home! The property features 4 bedrooms and 3 ½ baths, including an oversized oceanfront top level master suite with Jacuzzi tub. The open living/kitchen/dining area offers a wonderful space for entertaining and family fun! The ground level features an additional living area along with a garage. The exterior includes multiple decks and a private walkway onto the beach. Offered at $1,299,000.
One off the Ocean in Beach Haven Crest Views galore from this newly constructed 3,000 sq. ft. Studio Tagland contemporary! Built with quality workmanship throughout, this home features the latest and greatest amenities. The design includes an open living area floor plan, 6 bedrooms (2 are master suites), 4.5 baths and custom kitchen with granite counters and high end stainless appliances. Special features include an oversized rooftop deck, professional landscaping, hi tech Jacuzzi tub in master suite, surround sound system, fireplace and elevator. Offered at $1,799,000.
Willy Kahl – RE/MAX of LBI -Top Producer for 2009
My knowledge and experience of Real Estate marketing and sales has proven 2009 to be a successful year. I have earned recognition from RE/MAX of LBI as their #1 top producer in 2009. My commitment and dedication to both Buyers and Sellers distinguishes me as a professional. I am a full-time Realtor and I am readily available and encourage calls to my cell phone to conduct business. I am available for business until 10 pm every evening, 7 days a week.