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December 2009 Update
2009 has certainly been a year a of activity in the Alligator Point, Bald Point, and to a lesser extent the St. Teresa real estate market.
Through mid-December 2009, there have been 26 sales on Alligator Point and Bald Point, and Harbor Point was involved in all but 3 of the brokered sales. Harbor Point also brokered the sale of a house at St. Teresa and several other sales out of the immediate area. 14 single family detached houses were sold in the Alligator Point, Bald Point, and St Teresa areas so far in 2009. Sales price on houses ranged from $137,000 to $500,000.
There were 13 land sales in the same areas during 2009 with prices ranging from $41,000 for interior lots in new subdivisions to $270,000 for a Gulf front lot.
Activity in the 4th quarter of 2009 has accelerated with a number of offers, pending sales, and closed transactions even into December, which is typically one of our slowest times.
We show property almost everyday to qualified, serious buyers that have been watching the market and realize that it is the best to buy. The best deals in most segments of the market have prices from 6 - 8 years ago.
Most buyers comment that the prices "make sense" or "seem like a good deal" and then they take action. Prospective buyers that have made offers, even aggressive ones, have been rewarded with quality properties at reasonable and sometimes bargain prices.
Harbor Point now represents local banks as well as a number of asset managers that handle foreclosure sales for regional and national lenders. Every foreclosure that we had listed through November has sold or is under contract.
If you would like to receive automatic notification of new or changed listings in the area, please email paul@harborpointrealty.com and let me know your search parameters.
We look forward to a very busy 2010 and the gradual increase in prices in certain segments of the market.
Current listings include properties of all types and prices from the interior lots on Pine St or at Bald Point at less than $50,000 to Gulf to Bay properties at over $1,000,000. Interior lots within walking distance of the beach are listed in the $50,000 - $70,000 range, while lots closer to the beach with views start at about $85,000. The least expensive waterfront lots are on the marshy part of the bay or canals and start at about $100,000. Bay front lots on open water range from less than $239,000 and depend on the location and proximity to the beach. Gulf front lots begin at less than $300,000 and go up to $750,000 for a vacant Gulf to Bay homesite.
Houses in the Alligator Point and Bald Point areas range in price as much as the vacant properties. Interior mobile homes are the most affordable residential and are priced from less than $100,000. Interior homes that were built on site start at just under $150,000 and go up to about $400,000 for those with a view. Direct water view homes are priced from about $275,000 and up. Waterfront houses fronting canals start at less than $400,000. Homes on the open bay range from about $500,000. Gulf front homes are listed from $500,000. The least expensive Gulf to Bay home is less $800,000.
Typical buyers are still the folks you read about in the economic articles-- retiring couples with grown or no children that have inherited some money from their parents or have sold suburban properties for significant gains. Most prospective buyers are folks that intend to use their coastal properties and not investors looking to turn a quick buck. The investors that are buying have a longer term outlook than those from the last few years. Most end-user buyers seem to be primarily interested in existing homes rather than lots because of the changing construction prices and building requirements.
Current buyers are not expecting the 20% and 30% annual increases in prices that have occurred in the area in recent years. No one can realistically expect those rates to be sustained. However, property values should continue to increase at a more normal rate, and end-user buyers create true value in properties.
Vacation Rentals
Harbor Point saw an increase in total reservations for 2009 over 2008 despite the local vacation rental market being down slightly over the same period. We believe our strategic marketing and dedicated management enabled our growth in 2009. We manage the best rentals in the area and treat our guests as guests and treat our properties as if they are our own. Rates did not increase much in 2009, and the market has become more competitive with more units available.
The days of "hand me down furniture" and "bring your own linens" are over for owners that are serious about rental revenue. Flat screens TV's and high speed internet are the standard for successful rentals.
Most of the buyers and all of the prospects that I am working with right now are considering vacation rentals as part of their purchase.
From small homes near the beach with rents of $500 per week to large homes on the Gulf that rent for $3,000 per week, rental properties are in high demand at all price levels. Currently, there are about 50 – 60 rental properties in the Alligator Point and Bald Point area. Most homes are managed by local real estate firms, but a number of properties are offered directly by owners through the internet. Harbor Point manages about 40 vacation rentals in the Alligator Point area.
Snowbird rentals from November through April are increasing every year with a number of guests booking houses now for next year. While the typical summer guest is a family with children, our winter guests tend to be active retirees from the upper Midwest and Northeast that stay in the area for a month or more. A number of couples travel to the area together and have made Alligator Point an annual tradition from as far away as England. Some leave their fishing gear and cars in storage to use next year. Our winter guests are not as noticeable as our summer guests and focus their attention on quieter activities such as bird watching, kayaking, and shore fishing. Not too many bring their jet skis.
Residents and guests alike are anticipating all of the area improvements that the state and county have planned to our roads and the state park. Alligator Point may not be part of the forgotten coast anymore; however, it’s still a special place that attracts people seeking the same type of refuge. Long time residents and visitors love the area for the same reasons as the newcomers and not many seek to change it in any significant way.
Paul Parker, Owner/Broker
Harbor Point Realty
paul@harborpointrealty.com
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