In 1987, the Oceanfront sales market had peaked on LBI. Six and seven years later I was selling oceanfront homes for approximately 25% less than the 1987 climatic sales market. Then Oceanfront land began appreciating slowly from1992 to 1998. In that time period, the average oceanfront home increased a total of 24%. Over the next seven years (1999-2006), they increased another 329% – bringing total appreciation up 353% from the low of 1992 to the high of 2006! The average oceanfront value in 1992 was $553,844 and had peaked in 2006 to $$2,508,891. (Multiplied by 453%, subtracting the initial price brings us up 353%).
I feel history is repeating itself with approximate timing, appreciation & depreciation. We have already experienced the seven or so years of a depreciating LBI home sales market from the 2006 peak. From the peak, values were down approximately 20% on oceanfront and approximately 30% on bayfronts. Oceanfronts are slowly going back up in value and bayfronts should follow soon.
Most Buyers are more likely to purchase a property if the Selleris asking a fair price reflective of today’s market value. These buyers are excited that they are able to afford a vacation home on LBI! With attractive mortgage interest rates and competitive asking prices, along with a variety of properties to choose from, it’s a great time to buy or sell on LBI!