As housing prices drop folks are coming out of the woodwork looking for bargains. If you are looking in fringe subdivisions far outside of major metropolitan areas they are all over the place. But if you are looking to get a bargain on prime beachfront property that will be very hard to do.
Lets face it, supply of beachfront property is way below the demand and will continue that way as the Baby Boomers retire and expect to have their birthright retirement on the beach. So if you were thinking that the prices for homes overlooking Cape Cod are going to drop dramatically, forget about it. The only place prices are weaker according to Money Magazine are in Florida and Hawaii in the United States and even then you will still pay a pretty penny to get direct access to the beach.
Ross says she sees “great value” right nowin Hawaii, where prices have fallen some 10%. Keith is finding deals in the Caribbean archipelago of Turks and Caicos – particularly the Grace Beach section, where developers overbuilt during the boom.
One market where both Ross and Keith see buying opportunities galore is Florida. The best Florida bargains are in condominiums. Kerry McNulty, a real estate agent in the Panhandle resort town of Destin, says Panhandle prices have fallen 25% to 30% since 2005. A two-bedroom beachfront condo that might have sold for $600,000 in 2005 can now be had for $425,000, he says. via Money Magazine