Hot Commodity – Waterfront properties don’t follow market trends
Saturday, October 28th, 2006By R.P. WHITTINGTON, Special to the Times-Union
The residential home market continues to normalize after a three-year period of staggering sales and record home appreciation. An exception to the rule is waterfront property, which seems to defy the odds compared to other homes on the First Coast’s market. “Within the general market of home buyers, those attracted to waterfront properties are really a different breed,” said Randy Long, chief operating officer of custom home builder J.A. Long. “The house can be on a pond or overlooking a lake at a golf and country club, it doesn’t matter. There will always be a market for those properties because there is such a limited supply available. They are always a hot commodity.”
Water views, along with trees and the surrounding landscaping, are some of the features J.A. Long now uses in determining which lots they select for their custom homes. The company also keeps an eye on the views from inside the home when they build, typically incorporating lots of glass and large open areas on the first floor of the house.
“Waterfront properties, whether they are located within a country club or just near water, don’t follow the same trends as other homes in the marketplace,” Long said. “Since waterfront opportunities are more limited, the market tends to remain strong regardless of what is happening in the overall real estate market.
“Watson Realty Corp./Fleming Island Realtor Neil Avery recently resold one of J.A. Long’s houses for $734,500; a four-bedroom, three-bathroom 3,450-square-foot home located on Romeo Point on Doctors Lake.
The St. Johns River and its tributaries, the Intracoastal Waterway and miles of oceanfront put the First Coast in a unique competitive position when it comes to waterfront properties, Avery said.
“We have many more opportunities for waterfront here compared to a lot of areas in Florida, and many beautiful lakes in the outlying counties that many people haven’t even heard of,” said Avery, who works extensively in Clay, Duval, Putnam and St. Johns counties. “When you compare our waterfront prices to other markets in the state, while most are not cheap, you generally can get more for your money here. And with the slowdown in the market, they offer even more of a bargain for buyers now.”
About 1,000 people relocate to Florida each day and many want to follow their dream of living near the water. There also are Florida residents looking at the First Coast.
“Our property values are significantly lower than similar properties in South Florida,” he said. “I recently had an instance where a buyer who lived in the Florida Keys got sick of the hurricanes and decided to buy a home on the water here. The family sold their house there, bought here, and pocketed the difference to bank for their retirement.
“Prudential Network Realty’s Michelle Cummings concurred, adding that most waterfront properties are retaining their resale value better when compared to other inland areas of Jacksonville.
“As is the saying in real estate, it all goes back to the location,” Cummings said. “The property doesn’t have to necessarily be on the water. It can be located blocks off the actual waterfront and still offer a good view, which is what most waterfront buyers want more than anything.
“Cummings has two very different waterfront properties she’s marketing – a four-bedroom, two-bath condo at Ocean 22 at Jacksonville Beach priced at $925,000, and a condo at Marina San Pablo priced at $675,000.
“It is a great time for buyers to be in the market for waterfront, especially the resale market,” Cummings said. “They have more properties to choose from and buyers have more room to negotiate with sellers. For homeowners who have always dreamed of living near the ocean or the Intracoastal, the market has some great opportunities out there for them to move up to waterfront living.” Waterfront properties also tend to have more variety when it comes to architecture and interior amenities.”The exclusive aspects of waterfront living tend to make developers add more flair to what they are building because of the unique environment that comes with it,” said Andrew Howe, manager of Cranewoods Development LLC.”As a developer, I know the location will support the additional investment in architectural design inside and out,” said Howe, whose company is currently building the Northshore Condominiums in Jacksonville Beach and The Abacos, a 15-home Caribbean-style residential development that will have two single-family ocean manors, five three-story townhome cottages, four two-story townhomes and four penthouse-villa flats.
“When the time comes for resale, our initial buyers typically find that their waterfront properties hold up well, despite what the overall real estate market is doing,” Howe said. “And when you have these unique design elements, subsequent property owners also tend to make additional upgrades over time, which certainly helps them when they put their property back on the market.”
Amy Cataland is selling her home at Tiffany by the Sea, the only gated oceanfront community at the Beaches. She purchased an oceanfront property and built a three-story, 5,000-square-foot home, complete with an elevator, on the site in 1996. It’s now valued at nearly $3 million.
“It’s a fabulous home, and being in the only gated community on the oceanfront makes it even more unique,” Cataland said.
She has enjoyed the benefits she discovered in a gated community, including security, less traffic and less noise.
“The homes have such beautiful architecture that I can see that we would have a lot more traffic from people wanting to look it over if the gates weren’t there,” Cataland said. “With the gates, we don’t have to worry about people just zipping through the neighborhood.”
Chris Prescott, who now lives in Atlanta and is selling his home on Beach Avenue in Atlantic Beach, bought the property and completely razed the house that was there to create a beach home that was more “urban and open,” which he said better fit his personality.
“I grew up in the Beaches, and that’s the way it was here when I was a kid and I love that about this area,” he said. “To me, living in an open, active environment with a lot of hustle and bustle is whole point of living at the Beaches.”
Phil Pierce, a Prudential Network Realty Realtor representing both sellers, said there is a wide selection of waterfront properties available to buyers of all types.
“As with any home sale, it’s up to the personal preference of the buyer,” Pierce said. “There are pluses and minuses with all waterfront properties. For those who are looking for an added degree of privacy and security, or a more exclusive style of living, they can find it on the water. For those who lead more active lives and want to be closer to entertainment or nightlife, they can find waterfront living that captures that, too.”
