Here are some interesting statistics from the MLS for sales of waterfront real estate in Seattle. While the total number of waterfront home sales was down significantly in 2008 vs 2007, median prices actually increased in 2008.
Waterfront residential properties (houses, townhomes, houseboats) had a median price increase of 9.6% (to $1,057,500), and condos had a median price increase of 6.6% (to $437,500). The total number of waterfront homes sold in 2008 was down 50%, and total number of waterfront condos was down 13%.
Much of this can probably be attributed to three factors:
1) Waterfront homeowners, statistically, have more disposable income and assets than your average homeowner, and therefore aren't forced to sell while the market is down. Many owners will hold firm on their price, and others will just pull homes off the market.
2) Many re-furbished/renovated condo conversion projects have come on the market recently, creating higher-priced waterfront condos in the place of older ones, and driving the median prices up.
3) Cliche alert: "They aren't making any more waterfront land." Scarcity supports prices.
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