New Jersey, just like every other state in the union, has felt the effects and the repercussions of a housing market which can best be described as volatile over the past few years. Even though New Jersey is a relatively small state geographically, it is the most densely populated state in the country as of 2011, and has a hugely extensive range of places to live for different tastes and income brackets. However, the effects on the housing market have been pretty much across the board.
In the weeks leading up to Hurricane Sandy, many parts of the United States have been noticing something like a recovery in the housing market which can best be described as “embryonic”. In September, pending sales of homes had been consistently rising for 17 months according to the National Association of Realtors. New constructions of homes have also seen something of an improvement nationwide, including in the Garden State, as there has been a slowdown in the number of foreclosures in NJ.
However, Hurricane Sandy seemed to carry with it the potential to change all of that and more. Sandy was dubbed a “Superstorm” by the media, and it seemed hard to argue with that moniker, especially as the storm began to make its way through the area. The media hype also certainly seemed justified afterwards when well over a million people were left without power, gas rationing was temporarily implemented, and many properties with water in close proximity sustained damage.
Waterfront property is some of the most coveted and expensive in the state. This includes not only Jersey shore oceanfront property, but areas like Hoboken, which have great views and easy access to New York.
Most of these areas were evacuated before Sandy came through, and some properties were damaged beyond repair. Even the aforementioned urban areas like Hoboken were left without power and with limited transportation for a time. However, there was no shortage of preparation overall, and the outpouring of support from around the country has helped significantly.
Although many were left without homes, homes are being rebuilt with upgraded architecture and other safeguards against dangerous storms in the future. Most buyers of oceanfront property understand that natural disasters are a possibility, and this was the case before Sandy. However, it has been speculated that the price of these now upgraded properties as well as insurance may inspire hesitation in buyers more than the fear of future storms.
However, the area is now recovering, and most likely the effects on the housing market will be minimal; the New Jersey housing market will continue to recover along with the rest of the country, as foreclosures in NJ continue to decline.
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Lauren Biddle is a writer who has contributed to hundreds of blogs and news sites. You can also follow him on twitter @Biddle23 to see what else he has to say!