Tuesday, September 2, 2008

Are Prices Going Down on the Beachfront Properties

As we all know, we are in a Buyer's Market and real estate prices have come down from their highs of 2005-2006. But a question I still get is "Are prices going down on the beachfront properties?" The short answer is "yes", but there is more to it than that.

When prices are going down, no class of real estate gets exempted from the market conditions, but that doesn't mean that all types of homes are impacted to the same degree. As a general rule, those properties that perform best, regardless of whether prices are going up or down, are those with locational advantages and those that are the most modern. If a home has both of those advantages, it will hold it's value the best in a Buyer's Market.

All of the properties along the beachfront automatically have a locational advantage. Beachfront properties are the ones in shortest supply so there is an advantage there. Some of beachfront homes also have the advantage of being modern when compared other options in the market. Although all the prices of all properties feel the impact of the current market, beachfront properties generally hold their value better than non-beachfront homes.

The two complexes that seem to have been impacted the least are Grand Resorts and The Bluffs in Long Branch, both of which are on the beachfront and both are the newest options out there, being only about two years old. Based on the sales, the impact on prices has been minor.

Got a question, feel free to ask. Hopefully I can help you benefit from my 30 years of productive experience right here in the Monmouth County Shore market.

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