Although the real estate market has and will continue to suffer in the waterfront areas affected by Hurricane Sandy, decreased competition is pushing some buyers back into the market, Bloomberg News reported.
“You take your chances anytime you get involved with real estate,” Danea Kelly, who is house-hunting with her brother in North Wildwood, N.J., said. “We may now have less competition from other buyers and it might steer some people who have lived down there a long time, who may decide, ‘It’s time for me to sell.’”
Moreover Lawrence Yun, chief economist for the National Association of Realtors, added that buyers tend to return over time in areas hit hard by natural disasters. “The allure of having an oceanfront property is just too great,” Yun told Bloomberg. “People recognize that there are bad natural-disaster events and they just cross their fingers and hope it doesn’t happen to them.”
But the Jersey Shore market may also suffer from costly repairs and upgrades to defend against future storms, increasing property values but disenchanting buyers. Moreover, insurance costs are expected to rise in the area.
“Even if insurance rises 10 or 20 percent, I don’t think the premiums will stop people from moving to the coast,” Tom Heist, an independent insurance broker in Ocean City, New Jersey, said. “It has always cost more to live at the coast. I believe that people understand the value proposition and are willing to pay for it.” [Bloomberg] —Christopher Cameron