Why are so many waterfront homes for sale? (foreclosures, rentals)

[Lauriedeee]

My realtor sends me as many as 3 new "just listed" single family waterfront listings every day and then I also get at least one price reduced home per day in the emails he sends.. Some of these homes are lowering their prices up to 50k. I've been looking at homes on canals in the high 3's to 480k price range. What I don't understand is why there are so many houses up for sale on the waterfront. On the website link he sends me there's an option to see all the houses for sale and foreclosures in any particular area. If I click on it, the waterfront area is so filled with houses for sale that I can't even see land.
I asked my realtor why there are so many houses for sale but he never really gave me an answer.

The prices are really coming down and I'd like to buy there but I'm worried about the taxes. Did they go up so high that nobody can afford them anymore? I can see how the taxes have gone up for each year, but is there supposed to be another tax hike that's scaring these people into moving out of the area?

thanks..

[exit82]

Yes- it's the taxes- and
You need a smarter realtor.

[rscalzo]

Coming down because they were priced so ridiculously high well beyond what was a reasonable price. They are probably still overpriced.

As far as property on a canal in NJ, the slit moves so quickly that it may fill in making docking a boat next to impossible. Don't wait for the state to dredged so be careful. The EPA also has restrictions of dredging.

[Jellybean50]

I would say TAXES. And they might be alot of the homes that have been on the market the longest, becuz they were overpriced in a market where before, they COULD have sold for that price - but not any longer. Could also be that the area you are looking in just has alot of waterfront homes.

Also - if they are foreclosures, alot of people buy waterfront homes as second homes, and just dont have alot of money anymore. Prices of houses drop alot... i wish i could buy now.

I had a CMA done on my house (not waterfront) last year - and i was shocked at what i was told to ask for my house (how little). I put it off til this Spring, and i'm going to try again. But i refuse to "give" my house away - especially since i need money to buy another one!

[rscalzo]

alot of people buy waterfront homes as second homes

Many bought them using home equity loans based on over inflated values of their primary home. Then the bottom fell out and they are screwed. Many also depended on huge rental incomes that also dried up.

[MontclairNative]

Waterfront are largely 2nd homes which are very sensitive to recession. No money for "luxury" items and lending is more stringent on 2nd homes. Insurance may be going up too, not sure.

[ocnjgirl]

I would make sure you can get homeowner's for a decent price before buying, and also that you're not in a flood zone - they could be reasons, too.

[Stone28]

There has always been a lot of waterfront homes for sale. Like other poster have mentioned many are second homes. People love them the first few "Honeymoon" years then they become a chore and the for sale sign goes up. When times are good waterfront homes value increases more than non waterfront. But during bad times there is less of a buyers market because it is a luxury item.

One thing is certain, people will always want to live on the water especially in a place with a great view. It's like having a great piece of ever changing art in your backyard.

[Lauriedeee]

thanks for all the responses.. A lot of what you all said makes sense, especially about them being second homes and rentals. Now that you mention it a lot of the homes I see are decorated very beachy with wicker furniture and bedrooms with a couple of bunkbeds in them so I think they were probably summer homes and rentals.
There just seems to be so many of them that I was wondering if those owners knew that the taxes for the waterfront were going up again.
I would love to live in a place with an ever changing view.. but I'm afraid of NJ taxes. I don't want to end up trying to sell because we couldn't afford to live there.

[rscalzo]

People love them the first few "Honeymoon" years then they become a chore

Like when I bought my boat. Seemed like a second job after a while.

I was wondering if those owners knew that the taxes for the waterfront were going up again.

Many years ago when some bought the southern end of the state was more of a summer vacation spot. As the state grew, those areas became year around communities now requiring schools and services not normally needed year around. That caused taxes to jump significantly. A friend bought a small summer home back in the late 70's paying almost nothing in taxes. today it has been renovated into a year around home and the taxes are up there.

Not unlike what occurred in some Pocono areas.