Summer 2008 Update

Activity and progress are on the increase again at Alligator Point. Harbor Point closed on the sale of a beachfront property in June 2008 for $650,000. It was a cash sale with no contingencies. During June we also put a beach front lot under contract as well as a bay front home. Both sales have few contingencies

There are a couple of interior properties under contract as well.

We continue to get inquiries from prospective buyers, and we show property every week. Our most serious buyers are purchasing what they perceive as the best deals in each category.

Rentals are very strong with guests reserving already for next summer. We manage over 30 properties in the area, and all of them are full for some weeks this summer.

Financing and insurance are available on properties at Alligator Point, but financing is more challenging than it has been in the past.

The county has officially signed the construction contract for the repaving of Alligator Dr starting at the marina end of the road and working towards Highway 98. Construction must be completed within 180 days.

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. 

Current listings include properties of all types and prices from the interior lots on Pine St or at Bald Point at less than $100,000 to Gulf to Bay properties at over $1,000,000.  Interior lots within walking distance of the beach are listed in the $125,000 - $200,000 range, while lots closer to the beach with views start at about $200,000. The least expensive waterfront lots are on the marshy part of the bay or canals and start at about $200,000. Bay front lots on open water range from less than $500,000 and depend on the location and proximity to the beach. Gulf front lots begin at less than $500,000 and go up to just under $1,000,000 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 the $120,000’s. Interior homes that were built on site start at about $200,000 and go up to about $400,000 for those with a view. Direct water view homes are priced from about $450,000 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 less than $800,000.  The least expensive Gulf to Bay home is less $900,000.

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

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 35 vacation rentals in the Alligator Point area.

Summer is still the peak season for vacation rentals. Many houses have already been reserved through this summer, but the 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, beaches, 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