Hurricane Sandy, Flood Insurance and the Beach Haven West Real Estate Market
Beach Haven West is a quiet residential community located in Stafford Township in southern New Jersey. The area was developed in the 1950s and 1960s with single level ranches and Cape Cod style homes. Beach Haven West is unique in that just about every home is located on the water. The entire development is lined with lagoons that offer direct access to Barnegat Bay. While light on the water is an essential and compelling component of living near the beach, it does carry with some risk. These risks were made evident when Hurricane Sandy made landfall at the end of October 2012. Beach Haven West and Hurricane Sandy created some new challenges for the Beach Haven West real estate market.
Beach Haven West and Hurricane Sandy
There are three major impacts both buyers and sellers need to be aware of in the Beach Haven West real estate market as a result of Hurricane Sandy. They are:
- Flood insurance is a major concern for buyers
- Non-elevated homes are now at a disadvantage when trying to sell in the Beach Haven West real estate market
- The face Beach Haven West is changed, with new construction on almost every road
Flood insurance is perhaps the most critical component of the changes seen Beach Haven West real estate market in the wake of hurricane Sandy. Flood insurance is determined by several components, the most important of which is the elevation above sea level. Homes that are below base flood elevation will see an increase in their insurance premiums. While this increase will not be catastrophic in all cases, it is a financial concern and something that must be taken into account when determining the cost of ownership. In some cases, homes that are out of compliance will see a dramatic increase making the home all but unsellable. In these cases, the value will essentially be for the land and the possibility of future new construction.
The upside of Hurricane Sandy has to do with the changing face of Beach Haven West. Aided by flood insurance payouts, many homeowners were able to rebuild their older homes to large new construction elevated well above base flood elevation. These new homes are better protected against future storms, and meet all the requirements of the national flood insurance program. This will help to safeguard Beach Haven West against future storms and a significant investment recently made in the area should have a positive impact on prices.
Beach Haven West Real Estate Market
If you are thinking of buying or selling in the Beach Haven West real estate market, it is important to understand the impact of Beach Haven West and Hurricane Sandy. Buyers and sellers must now be aware of topics such as flood zones, flood elevation certificates, and zoning rules to determine the value of a home. All this is complicated, but once you have an understanding of the new rules applying to the Beach Haven West real estate market, it is possible to determine the true value of a home. For more information about Beach Haven West and Hurricane Sandy or the Beach Haven West real estate market, contact the Beach Haven West Real Estate Group and we will respond right away.
The Beach Haven West Real Estate Group