How low can it go?

[fisher]

You are looking at some attached homes and partial ownership. The fact is that SFR detached are very scarce under a million on that Island, and the venue is very exclusive, barring anyone but owners and guests. Based on dollar value, it is much more expensive to own on Kiawah. It's why you just can't waltz by the guard shack through gates one and two or use many of the clubs as guests unless the owner/members get you in. It's a much different animal altogether aimed at a very high demographic. You cannot even drive the streets looking for lots/homes unless accompanied by a Realtor or owner or as a residing guest. 30a is much undervalued because raw land prices are far lower than Kiawah. The 30A variety of architecture is much higher, as is the freedom of movement throughout the community. 30a is still a cheap date compared to many of those locations you mentioned. I've been to every spot you mentioned, and I choose 30A. 30A is greatly undervalued, and time will prove it. The owner's wife who listed Kiawah Island did so, because her husband was afraid the island was only worth the timber. He owned it all, and look how wrong he was.

You are talking in vague generalities. I guess you didn't check the link I posted. There are 35 SFH's under $1 million listed on the Kiawah Island real estate site. The highest list price was a 5400 square foot oceanfront residence with all the bells and whistles on over 1 acre. Priced at $7.75 million. Please show me somewhere in an exclusive resort along 30A where you can get an oceanfront 1 acre lot with a 5400 sqaure foot beautiful home for $7.75 million. Heck around 30A most people would be asking $7 million just for the acre of land.

Check out the exclusive Amelia Island Plantation http://nas.ctimls.com/PSearch.ASP?form=ResultPage&Rec=20
where you can easily get in for under $1 million and get huge oceanfront homes on huge lots for under $5 million (compare to a 2500 square foot house on a tiny lot in Seaside, Rosemary, Watercolor or the Retreat) for the same price).

The list of more "affordable" beach locales (not that any of them are affordable for the majority of people) goes on and on.

30A ain't cheap compared to any of those locales except for maybe Naples and some California areas.

 

[Paula]

No, Galveston is not SoWal. But is it worth it to many buyers to pay four times as much for beachfront in SoWal as it is in Galveston?

And for all that it's a beuatiful place here, it's always going to be as something of a disadvantage to many buyers to a place like Sanibel because the winters are cooler and more unpredictable than beach towns further south.

Don't get me wrong. I like it here. But there are pros and cons to it like every place, and not everyone interested affluent buyer looking for a beach house goes into it with the same values. And the cons of the area do end up serving as limiters to the prices in a non-speculative market.

For me, one of the advantages of SoWal/Panhandle area is that for northerners (like me) who are used to REALLY cold weather and who also want to rent out our places for income, we can rent out our SoWal place during the peak summer season when it's nice to be up north anyway, then come to SoWal during the lowest rental season and enjoy average 60's weather with some high and low temps that's much warmer than northern weather. The only thing that I'd wish for with our place in SoWal is a heated pool - but if I were there for longer periods in the winter I'd join somewhere else with a heated pool.

Because it's not so hot in the summer, SoWal would be a comfortable year-round place.

 

[Pirate]

I have said this before but I will say it again. I believe I was one of the original bears on this board just so everyone knows. I think there might be more room for prices to fall here but I am making offers and have closed properties recently. I think fear has become the driving force for many sellers. I believe you might be able to buy at a large enough discount from asking on some properties at this time to get as low as or even below what the bottom will be. When you use rent multiples to buy you should always be in good shape unless the tourist market goes to hell because they arrested everyone off the beach. Even if you are buying strictly for personal use this methodology works. Just my bottom feeding 2 cents.

 

[Bobby J]

I have said this before but I will say it again. I believe I was one of the original bears on this board just so everyone knows. I think there might be more room for prices to fall here but I am making offers and have closed properties recently. I think fear has become the driving force for many sellers. I believe you might be able to buy at a large enough discount from asking on some properties at this time to get as low as or even below what the bottom will be. When you use rent multiples to buy you should always be in good shape unless the tourist market goes to hell because they arrested everyone off the beach. Even if you are buying strictly for personal use this methodology works. Just my bottom feeding 2 cents.

Good stuff Pirate. I think we will go below the actual real values and folks will wake up, myself included. Fear is pusing the market. We will then adjust back up and we then should have a more stable scenario.... When? Crystal ball is broken but in some areas we may be there.