Unique Homes Blog

From Maryland to South Carolina, and Florida to California, we profile five of the country’s best luxury waterfront markets.

By Roger Grody

FLORIDA’S OTHER COAST
New Yorkers may have cornered the Miami Beach market, but folks from the Southeast and Midwest are drawn to the white sand beaches of the Emerald Coast, on the Florida Panhandle. According to Brad Smith of Prudential Coastal Properties, the real estate market in this part of the state was not hit as hard as South Florida, and he looks ahead with optimism.

“The luxury segment has gotten its legs back and sales volume in the first quarter of 2010 was up 40 percent over last year,” he reports. In gulf communities such as Destin or Miramar Beach, a 3,000-square-foot, single-family beachfront home commands about $1.7 million, while a luxurious condominium can be purchased for $650,000.

Although less than half of the area’s high-end properties are purchased as primary residences, Smith sees an increasing number of baby boomers buying vacation homes with an eye toward retirement, attracted not only by water sports and golf, but also an emerging arts scene. “We kind of have it all,” he says.

ORANGE COAST

Few stretches of real estate are more coveted than the dramatic coastline of Orange County, California.

“While appraisers may consider the luxury market to be a declining market, I’m more inclined to classify it as a cautious market,” says Coldwell Banker Residential Brokerage’s Warren Heeg. At press time, he reported that the pristine oceanfront enclaves of Pelican Hill, Pelican Point and Pelican Crest had 28 active listings with an average price of $11.8 million, and that 15 properties were sold in the preceding 12 months at an average of $7.3 million. “Prices are not declining; they are leveling off and becoming more realistic,” suggests Heeg.

Corona del Mar, offering world-class shopping and dining in addition to idyllic oceanfront vistas, is particularly attractive to high-end buyers. About half of them are looking to settle down, while the others — primarily Southern Californians or Nevadans — are seeking second or third homes near the water. “With affordable money and abundant inventory, this is an excellent time to buy,” insists Heeg.

CHARLESTON SHORES

Rivaling the city’s splendid colonial architecture and rich low-country cooking is the waterfront lifestyle of Charleston, S.C. “The city is surrounded by thousands of acres of marshes, creeks, five rivers, lakes, the Intracoastal Waterway, and the Atlantic Ocean,” explains Sandy Nettles, of AgentOwned Realty Co. She suggests the city’s authenticity, the arts, golf and friendly people also contribute to Charleston’s unbridled charm.

Typically, $1 million nets a luxurious home in the marshland or on the Intracoastal with a deep-water dock. Prices for oceanfront properties begin at approximately $2 million but run as high as $8 million, and homes with historic pedigrees command a premium. “The luxury market is fairly robust now, with prices having increased over last year,” reports Nettles, but she notes the economy has pared the number of buyers looking for second and third homes.

Savannah and Hilton Head are competing markets for vacation home buyers, but Nettles maintains that only Charleston truly integrates a tranquil waterfront lifestyle with cosmopolitan amenities.

ON CHESAPEAKE BAY

Cliff Meredith, of Lacaze Meredith Real Estate, tells us the luxury market in the Maryland waterfront communities of St. Michaels, Easton and Oxford is suddenly awakening after a difficult two-and-a-half years.

“Prices have begun to stabilize and activity is starting to pick up,” he says, noting that volume has increased since January and interest among high-end buyers really spiked in March. Prices for luxury waterfront properties begin at $2.5 million and extravagant estates can command 10 times that amount.

This resort area on the mid-eastern shore of Chesapeake Bay primarily attracts buyers from Washington, D.C., Baltimore and Philadelphia who value the outstanding boating, waterskiing and crabbing just a short drive from the city. This is primarily a vacation-home market and Meredith reports his luxury buyers are trending younger — from their mid-30s to mid-50s. “With a huge inventory and prices off 30 percent from their heights, this should be a very good time to buy,” he maintains.

THE GOLF COAST

In the resort destination of Hilton Head Island, S.C., golf is a religion and many luxury homes hug the fairways; most others are on the water.

At press time, about 70 area properties were listed at $3 million or more, with 20 tagged at $5 million-plus. Most of the Island’s premier properties are located in gated communities, with breezy names like Palmetto Dunes, Port Royal Plantation and Sea Pines.

Rick Turner of Rick Turner & Associates, a 37-year resident, claims, “Hilton Head is the gem of the East Coast, with the possible exception of Palm Beach, offering a very well-planned, family-oriented environment with high-end properties and lots of amenities.” A statistical review of luxury single-family houses with water views indicates the number of sales in the first four months of 2010 was up 65 percent over the same period in 2009, and that prices appeared to bottom out in late 2009.

“Last year, nobody was knocking at the door, but this year people are getting more confident and excited,” reports Prudential Premier Island Properties’ Wayne McDonald, adding that new Realtors are even entering the business again. He agrees with Turner that the market has stabilized, but notes current prices are discounted 30 to 40 percent from their heights, when speculators overheated the market. “Those lesser-quality properties tumbled the fastest,” says McDonald, who insists that Hilton Head is always an outstanding long-term investment.

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