I was out in New Jersey for a regional event and had the opportunity to talk to a counterpart at the shore whose area received damage in Hurricane Sandy last fall.
Curious, I asked them about the waterfront’s recovery. Turns out, to my surprise, that while most of the region has been rebuilt, there are still instances of waterfront homes that are damaged and uninhabited. There continue to be significant challenges left from the flood and wind damage.
For example, figuring out the flood insurance situation has been very hard because of the uncertainty: The new flood elevation maps have not been adopted yet. Listing agents have a hard time telling buyers what to expect once they agree to purchase the property. Some waterfront homes have experienced mold damage.
On the plus side, the downward pressure on prices from this uncertainty has made the coastal area more reasonable than ever. My counterparts were very encouraged by increased buyer activity as folks shop for properties at lower prices. “If people do their due diligence and are patient with the process, then there are tremendous opportunities for buyers,” they said.
They aren’t making any more waterfront… so a complete rebuild is in the cards. From what I heard, everyone hopes to be 100 percent back before the anniversary of the storm. Here’s hoping!