Jersey Shore real estate expected to bounce back

New York /
Nov.November 12, 2012 09:00 AM

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

 

Related Articles

arrow_forward_ios
A photo illustration of a crystal ball predicting future home prices (iStock)
Home sales, building to slow: Fannie Mae
Home sales, building to slow: Fannie Mae
Zillow economist Nicole Bichaud (Zillow, iStock)
Where have home values grown more, suburbs or cities? The answer may surprise you
Where have home values grown more, suburbs or cities? The answer may surprise you
Where have all the sellers gone?
Where have all the sellers gone?
Where have all the sellers gone?
Eric Wu, CEO and co-founder, Opendoor (Opendoor, iStock)
Opendoor stock soars on first profitable quarter
Opendoor stock soars on first profitable quarter
(iStock, Illustration by Kevin Rebong for The Real Deal)
Can Hamptons, North Fork markets get any tighter? Yup
Can Hamptons, North Fork markets get any tighter? Yup
EisnerAmper chair of real estate services Lisa Knee (EisnerAmper)
Listings shortage could endure for years, experts say
Listings shortage could endure for years, experts say
From left: Mike Rothman, founder and CEO, Second Avenue; Kyle Asher, co-head, Monroe Capital's Opportunistic Credit Group (Second Avenue, LinkedIn/Kyle Asher, iStock)
Firm aims to tackle the problem with single-family rentals
Firm aims to tackle the problem with single-family rentals
(iStock) Houses, Prices, Rising
U.S. home prices surged another 20% in February
U.S. home prices surged another 20% in February
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...