Smooth Sailing Ahead for Beach Properties

HOUSTON — (By Dale King, Realty News Report) — The latest quarterly edition of the 2024 Beach Real Estate Market Report from Beach Homes Realty is brim-full of promising news for folks looking to launch a waterfront lifestyle by purchasing a secondary home with an oceanic aspect.

The hefty document that spotlights seaside properties across the nation lists the 16 states along the Atlantic and Gulf coasts with shoreline properties in their portfolios. The total market value for this array of beachfront land and residences has grown to $111 billion. Beach Homes Realty is a licensed brokerage in all 16 of those states.

Ten of the 16 – Texas among them – offer a total of home and lot listings with a value of more than $1 billion, which presents a plethora of opportunities to buyers with an urge to look at rolling ocean waves from the window of their dwelling.

“While the U.S. economy remains robust, the primary housing market continues to navigate an unofficial recession,” says Glenn Phillips, CEO and chief economic analyst for Beach Homes Realty. “Shoreline properties and other discretionary housing types are showing early signs of recovery, potentially poised to pick up momentum ahead of the broader market.”

With $4.7 billion worth of waterfront properties, the Lone Star State ranks third in the aforementioned top 10 list of states with a billion dollars or more in waterfront residential assets.

Florida tops the agenda with an astronomical $78.7 billion worth of shoreline properties, far outdistancing second-place South Carolina ($7.58 billion). After third-place Texas come:

New Jersey ($4 billion)
Massachusetts ($3.86 billion)
North Carolina ($3.26 billion)
Maryland ($3 billion)
Alabama ($2.06 billion)
Delaware ($1.20 billion)
Connecticut ($1.10 billion)

Florida also heads the pack in the number of waterside property listings with 59,238 beach homes and lots, followed by Texas, in second place at 10,070. Then come South Carolina,10,021; North Carolina, 5,843; Maryland, 5,682; Alabama, 2,849 and Mississippi, 2,870.

And while the Sunshine State also tops the list of most expensive beaches for home listings, nailing four of the five top spots, Texas plunks a pair of its own waterfront communities onto the list of top five priciest stretches of beach sand for home and lot listings: Corpus Christi, 2,227, ranking third and Galveston, 1,720, placing that seaside Mecca just south of Houston in fifth place.

The realty firm’s report offers massive amounts of information about all 16 states on the water. Here’s a thumbnail sketch of the Texas shoreline:

Largest land and home markets: Galveston, 22 percent; Corpus Christi, 20 percent; Port Aransas, 10.4 percent; Bolivar Peninsula, 7 percent; Rockport, 5.6 percent; League City, 4.6 percent; Seaside, 4.3 percent; Surfside Beach, 3.3 percent; Texas City, 3.2 percent and Portland, 2.3 percent.

Most affordable homes: Port Arthur, $130,472; Freeport, $188,632; Baytown, $233,020; Hitchcock, $269,980 and Channelview, $277,468.

The report says Texas boasts 511 shoreline homes with a price tag of a million dollars or more. They are located in the following communities: Galveston, 162; Port Aransas, 116; Corpus Christi, 58; Rockport, 25 and Bolivar Peninsula, 21. All other communities have 19 or fewer luxe listings.

While the report’s numbers offer a linear look at the beachfront marketplace, Phillips fills in with the narrative.

In the realty firm’s quarterly report, he notes that the market for shoreline domiciles has been in a “stall” – a slowdown that has nothing to do with finances. As calendars flip over to 2025, he envisions a return to stronger sales and prospects.

The lead-up to the presidential election traditionally slows discretionary home sales as buyers are preoccupied with political news, he said. “I don’t believe people are genuinely waiting for election outcomes, they’re simply distracted.

In addition, the CEO notes, a seasonal slowdown in home sales is descending on the market as the holidays arrive – a time when “buyers focus on work and family, which is even more noticeable for beach homes in distant markets.”

“Rising inventories are also contributing” to the stall, with said, “with many properties initially overpriced.” He said he expects more realistic pricing trends through 2025 “to better meet buyer expectations.”

“Sellers are beginning to understand that overpricing only keeps properties stuck in inventory,” Phillips says. “The trend toward realistic pricing should continue, helping move these homes to sellable price points.”

More Purchase Power Without Market Frenzy

Unlike traditional markets, beach property buyers are less impacted by the interest rate fluctuations that stymie primary home purchases “as many pay in cash or secure favorable rates due to strong financial positions.”

Beach buyers are highly strategic, he said, waiting patiently for the right property at the right price rather than entering the market hastily due to interest rate changes. “Beach home buyers are not in a frenzy. They have the buying power and patience to wait for properties that meet their expectations.”

There is competition, even in the beach property market. And Phillips urges beach property sellers to proceed with caution. “Consider the national competition from other beach areas when setting prices. Sellers must recognize they’re competing not only with local listings but also with properties on other beaches across the country.”

While broad marketing is essential, he emphasizes: “I want to be clear: No amount of marketing can overcome overpricing.”

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