South Hutchinson Island Waterfront Residential Report
By Joe Melanson
What Has Happened to Prices Since 2012 and What to Expect This Season.
Synopsis: Island waterfront residential inventory has declined substantially and sold prices are showing a healthy increase since 2012.
Hutchinson Island Waterfront Homes South of the Power Plant
In 2012, the Jensen Beach and Stuart area of the Island had an average of 60 waterfront residences for sale per month, and they were selling at an average sale price per sq. ft. of $328.00 (ocean and river). In 2017, the inventory has averaged only 31 waterfront homes per month and they are selling at an average of $455.00 per sq. ft. This demonstrates a healthy 39% increase in the sold price per sq. ft. for waterfront properties since the market turn in 2012, or an average of 8% per year. Most significant is the decrease in inventory which is 50% less than 2012.
Average time on market for Island waterfront homes is 122 days this year compared to a lengthy 250 days on the market in 2012.
The highest priced home sold this year on the Island was $7,500,000 ($862.00 per sq. ft.) in Sailfish Point. This was a beachfront estate with 8,700 sq. ft. and panoramic views of the Ocean and Inlet.
In 2012, the Fort Pierce and Saint Lucie county area of the Island had an average of 16 waterfront residences for sale per month, and they were selling at an average price per sq. ft. of $183.00 (ocean and river). In 2017, the inventory for sale averaged 16 waterfront homes per month and they are selling at an average of $235.00 per sq. ft. This demonstrates another healthy 28% increase in the sold price per sq. ft. for waterfront properties since the market turn in 2012, averaging out at 6% per year. Inventory is the same since 2012. Average time on market for these Island waterfronts is 167 days this year compared to 206 days on the market in 2012.
The highest priced home sold this year on the Island north of the plant was $1,690,000, a beachfront home in the Watersong subdivision, a 5,800 sq. ft. built in 2009 with panoramic views of the Atlantic. The most expensive home sold in 2012 was an oceanfront on Fernandina Street. It sold for $765,000.
We expect prices to increase north of the Power Plant with the continued improvements of a new marina, restaurants, and luxury condos.
Hutchinson Island Single Family Residential Lots for Sale
Presently, 68 single-family lots are for sale on the Island (39 waterfront and 35 non-waterfront) compared to 73 lots in December 2012. Only 18 lots sold in the last 6 months, but this is still an improvement over the last 6 months of 2012 when only 10 sold.
The lowest priced lot sold during the last 6 months was $62,000 a non-waterfront lot in Fort Pierce and the highest priced was an Oceanfront lot that sold for $1,695,000 in Galleon Bay in Stuart.
We expect to see an upturn in residential lot sales as the economy improves and the existing Island housing market inventory declines with rising home prices. New waterfront construction will start to look more attractive to the consumer once the sq. ft. price of existing waterfront homes equals or exceeds the cost of purchasing a lot and building new. We are starting to see this trend on the Island evidenced by the new homes under construction in the Galleon Bay, Diamond Sands, Pelican Pointe, and Watersong subdivisions.
Island Fact: Gilbert’s House of Refuge was built on the Island in 1875 for the U.S. Life Saving Service to rescue shipwrecked sailors that were lucky enough to make it to dry land. It is the oldest home on the Island and in Martin County. Many stranded sailors would perish without food and water and no means to make it to the mainland before the House of Refuge was built. The House of Refuge was stocked with food and water for the survivors and fire wood for signaling the mainland for help. The keepers of the House of Refuge often had to provide their own food by hunting and trapping. The closest grocery store was in Melbourne. Their main source of meat was bear on the Island which they hunted and trapped. Based on historic reports, lots of bears inhabited the Island. Maybe taking a stroll on the beach in 1875 was a little more exciting than today.
Joe Melanson has been a broker for 30+ years and specializes in properties on the waterfront and in the waterfront communities of the Treasure Coast, Broker Associate for Premier Realty Group on Sewall’s Point. 772-486-7243 www.JRMRealEstate.com
All data is derived from the Realtors Association of Martin County MLS. Please note price ranges vary in different locations and subdivisions. Feel free to call and we will provide market insights for your particular neighborhood and location. 772-486-7243.