The prices of homes at the Jersey Shore have almost doubled since the pandemic and low inventory is continuing to push up the cost of a coveted beach house escape, agents say.
“People who have been in their home for four, five, six, seven years have 2.5% to 3% interest rates. They’re unwilling to move up to the next level” and buy a more expensive house that will come with a higher interest rate, said Michael Skea of Ward Wight Sotheby’s International Realty.
“Folks are renovating their existing home, maintaining their lower interest rate and maybe expanding the footprint of their home to accommodate larger family gatherings and more children,” he said.
The entry level price for a condo at the Jersey Shore is $500,000 and for a single family home it’s $1 million, he said. Though prices vary widely depending on the town.
Stone Harbor and Avalon in Cape May County and Deal in Monmouth County rank in the top 100 most expensive towns in the U.S. with median prices of $2.3 million to $3.5 million, according Zillow.
“Home prices were supposed to be relatively flat across the state this year,” Skea said. “But with the lack of inventory, prices are still increasing.”
In Long Beach Island there are about 125 homes for sale. Compare that to about 535 before the pandemic, said Craig Stefanoni, with Berkshire Hathaway Homeservices Zack Shore Realtors.
“So many people got priced out,” said Sharon Stefanoni, who is also with Berkshire Hathaway Homeservices Zack Shore Realtors.
The entry level Jersey Shore house buyer is a different person than in 2019, she said.
“We don’t get young families anymore. Those people are priced out,” Stefanoni said “A million dollars -- most of the time their house at home isn’t worth a million dollars, so to step up for a million dollar beach house is out of the realm.”
Shore house buyers are now typically in their 50s, empty nesters or becoming empty nesters, Stefanoni said.
Shore property values took a beating during the 2008 housing crisis. As they started to rebound, Superstorm Sandy hit in 2012 devastating coastal communities.
Then the pandemic happened and everything changed.
Homes that now cost $1 million were selling for $500,000 to $600,000 in 2019, said Robert Lange of RE MAX At Barnegat Bay
“I almost feel like where we are now, it’s as if you removed [Superstorm] Sandy from the equation,” Lange said. “Home prices are where they would’ve been without Sandy.”
Superstorm Sandy caused $29.4 billion in property damage in New Jersey.
“We always said that this was going to be an expensive place to be – with all the rebuilding of the infrastructure and brand new construction,” said Diane Rosetto, with Crossroads Realty.
Despite the low inventory, homes still need to be priced right.
“Sometimes a seller wants what they want and they put it on the market too high,” Rosetto said. “You have to price it to the comps and know the area and what you can get otherwise the house is going to sit on the market.”
Here are five Jersey Shore homes that are currently on the market for nearly $1 million:
1. 252 Joseph Street, Lavallette
This home has bay views from the kitchen and backyard. It’s a two bedroom, two bathroom home with 50 feet of bay frontage. It was not deemed substantially damaged and was not raised so it will require flood insurance which can run about $3,000 annually, if the property is mortgaged.
“It could be lived in for few years and then knocked down to rebuild,” said Diane Rosetto with Crossroads Realty, the listing agent. It has a new roof, new furnace and a new air conditioning unit.
The three bedroom, two bathroom ranch home was listed April 14 for $975,000 and had 28 showings through Sunday. There were eight offers, including two that were “significantly higher than list price,” said Michael Skea of Ward Wight Sotheby’s International Realty, the listing agent.
This four-unit home has a total of six bedrooms and four bathrooms. The front two units each have one bedroom and one bathroom. And the two-story back house has two units that each have two bedrooms and one bathroom. It’s a total of about 3,000 square feet, was built in 1940 and has newer HVAC and a newer roof on each building. It was originally listed in June for $1,149,000. It was taken off the market in January and relisted April 2 for $995,000. It’s a block and a half from the beach.
4. 17 South Weymouth Avenue, Ventnor
A two-family with a total of 10 bedrooms and five bathrooms. Built in the 1920s, the home retains its original charm and has been used as a rental and an AirBnb. The bottom unit has three bedrooms and one full bathroom on the ground floor, the front porch, two ensuites and a fireplace. The top unit, accessed from the rear driveway, has four bedrooms and two full bathrooms. That unit will be sold with the furniture. There are four off street parking spaces and it’s one and a half blocks from the beach.
5. 8 East Maryland Avenue, Long Beach Township
A four bedroom, two full bathroom home with an updated kitchen and bathrooms on LBI. It’s located on the ocean side on a one-way street. It was listed April 3 for $1,199,000 but the price was reduced April 24 to $1,000,000. “Since we adjusted the price we’ve had a lot of interest,” said Craig Stefanoni with with Berkshire Hathaway Homeservices Zack Shore Realtors, the listing agent.
Are you an agent, buyer or seller who is active in this changing market? Do you have tips about New Jersey’s real estate market? Unusual listings? Let us know.
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Allison Pries may be reached at apries@njadvancemedia.com.
