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A quarterly report illustrating the Sea Island real estate market.
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Page Aiken & Randall Moody
Page Aiken & Randal Moody Cottage 302 offered by:
January 2016 Market Report Sea Island, Georgia
Page Aiken & Randall Moody
Welcome!
Welcome to our recap of 2015 Sea Island Market Report. We have updated our Cottage report to give you the best available market information.
Randall and I hope you find it informative and that you will consider our team the next time you sell or buy real estate on Sea Island.
Sotheby’s International Realty is the world’s leading Luxury Real Estate firm. Through our over 800 worldwide offices in Atlanta, Miami, New York and beyond, we have the ability to market your Sea Island home to the world.
As a Sotheby’s team, we see 2016 being a good year for Sea Island real estate. We are working diligently to provide international and regional exposure to our Sea Island listings and to create activity that will benefit all Sea Island homeowners. We hope this market report will help you stay better informed.
Happy reading!
Page Aiken Randall Moody
About the cover….
Cottage 302, located on the SW corner of 31st and Sea Island Drive, built in 2002. Elegantly appointed and impeccably maintained. At over 7,000 SF this home offers six bedrooms and every amenity. It is designed to bring family and friends together to create special Sea Island memories - a must see home. Offered by DeLoach Sotheby’s International Realty for $3,680,000.
Executive Summary:
In 2015, there were 26 Sea Island home sales.
Inflated pricing strategies and long days on market (DOM) lead some Sea Island cottage owners to sell at prices below market. Sales are averaging 84% of list price.
Cottages that are newly renovated and/or closer to the Beach Club and Cloister continue to achieve higher values.
Achieving value through positioning (and/or renovation), a well-planned pricing strategy and a well-executed marketing plan is critical to maximizing value.
Cottage 302
Page Aiken & Randall Moody
SEA ISLAND REAL ESTATE 2016 Report
It’s the middle of January 2016 and the 65 new hotel rooms being added to the Cloister are almost completed. A sign that Sea Island is preparing to accommodate a record number of visitors in 2016, a telltale for a break out year for Sea Island real estate.
Demand
Sea Island vacationers and home owners come from all over the United States and the world to enjoy the 5 Diamond amenities of the Cloister Hotel.
An analysis of Sea Island homeowners shows that nearly 25% (over 220) of all Sea Island homeowners live in Atlanta when they are not on Sea Island.
Families from towns throughout Georgia including: Macon (25), Augusta (11), Columbus (6), Gainesville (6), Rome (4), Sandersville (4), Thomasville (4), Dublin (3), Newnan (2), and Savannah (3) among others have homes on Sea Island.
Outside of Georgia, families come from NY (36), NC (34), TN (26), TX (24), IL (23), CT (22), VA (22), OH (20), FL (19) and over 28 other states and countries.
Beach Club Amenities
Supply
There are approximately 560 Sea Island Cottages and 110 Ocean Forest Cottages and over 225 Townhomes, Villas and Suites on Sea-Island. Many of Sea Island’s fine homes were built in the last century and need significant renovation. In 2014/15, several were sold for tear down. This past year we have seen several older homes renovated, a few of which sold for a premium. The aging housing on Sea Island will continue to be a problem and an opportunity for home Buyers and Sellers.
Market Value
To better understand trends in value - we categorize each property by its View: Ocean, Marsh/Lake and Interior; and divide Sea Island into three areas based on proximity to the Beach Club: 4th-18th St; 19th -36th St and 37th - 56th Street.
Page Aiken & Randall Moody
Market Data - Cottages
The following chart illustrates key market data for Available and Sold Cottages grouped by View and Area on Sea Island:
Sea Island Cottages Currently Listed for Sale Sold (Last 36 Months)
# Homes Available
Average $$/SF
Average DOM
#Homes Sold
Average $$/SF
Average DOM
Average % of List
Interior
4-‐18 Street 7 $640 769 26 $458 326 82%
19-‐36 Street 32 $480 381 22 $420 486 88%
37-‐56 Street 7 $395 753 9 $335 213 84%
Marsh / Lake
4-‐18 Street 4 $507 332 6 $515 419 77%
19-‐36 Street 9 $594 499 4 $343 663 76%
37-‐56 Street 5 $646 589 2 $531 112 78%
Ocean Front
4-‐18 Street 2 $1,217 1061 4 $1,119 627 79%
19-‐36 Street 3 $989 416 8 $853 452 88%
37-‐56 Street 0 0 0 1 $1,137 89 81%
Ocean Forrest
Ocean/River 1 $1,027 211 1 $717 71 86%
Golf/Lake 3 $482 982 3 $397 494 77%
Interior Garden 2 $424 350 2 $350 234 78% * Home sold with 2.5 Acres Ocean Front 75 88
Note: The data reflects currently listed cottages for sale and all cottages sold over the last 36 months. Teardowns and transactions that were not arms length were not included. DeLoach Sotheby’s provides a comprehensive valuation analysis for every cottage we represent.
Page Aiken & Randall Moody
Ocean View
Today, there are 5 ocean front cottages available for sale ranging from a 6,065 SF (Cottage 6) on 35th Street at $5,950,000 ($981/SF) to a 9,000 SF (Cottage 32) on 22nd street at $8,950,000 ($994/SF).
Historically, Ocean Front has commanded a significant premium selling for between $900 and $1,200 per SF and ocean lots have sold for $3 to $5 million on average.
In 2015, there were two ocean front sales: Cottage 57 on 19th St. sold for $5.5 million ($789/SF) and Cottage 59 on 12th St. sold for $7.45 million ($1,146/SF).
Cottage 75 on 18th Street is available for $15,750,000; this oceanfront home is on 3.1 acres and is being promoted for redevelopment.
Cottage 32, a Mediterranean and Moroccan style ocean front home is 9,000 SF, 7 BR, 8.5 BA located on the ocean at 22nd Street offered for sale by DeLoach Sotheby’s International Realty at $8,950,000 ($994/SF).
Marsh/Lake View
There are currently 19 marsh/Lake front cottages available for sale. There have been 9 marsh front cottages sold since 2012 and 4 sold in the last 12 months representing a 5 year supply of marsh front homes for sale. Marsh Front cottages have sold on average for $500 per SF to $650 per SF. Newer renovated cottages bring the most value and cottages with Deep Water access (Docks with a minimum of 6’ water at low tide) are in demand.
Cottage 481 is a 4BR, 4.5 BA (4,775 SF) Tuscan Style brick home that offers elegant Sea Island living with exquisite marsh views and a dock. Offered by DeLoach Sotheby’s International Realty at $3,495,000 ($839/SF).
Page Aiken & Randall Moody
Interior View
There are 46 interior cottages currently listed for sale from $1.5 million and up. Their Location on the island is an important factor when considering pricing strategy. There is a correlation between proximity to the Hotel and Beach Club amenities and a home’s value.
Interior Cottages between 4th Street and 18th street have an average asking price of $640 per SF; 19th street to 36th street have an average asking price of $480 per SF and 36th to 56th street have an average asking price of $395 per SF.
Homes that were constructed after 2000 or have recently been renovated – sell for above average prices. Older un-renovated homes are selling below the average.
Cottage 95 (above) is located at 20th street one off the ocean and is offered for sale by DeLoach Sotheby’s International Realty at 1.9 million ($493/SF).
Additionally, Interior homes located one lot back from the ocean that offer ocean breezes and close proximity to the beach sell for above average prices.
Cottage 302 (above) a magnificently designed home is located at 31st street on the SW corner, a short walk to the desired north beach and is offered for sale by DeLoach Sotheby’s International Realty at 3.68 million ($522/SF).
Page Aiken & Randall Moody
Supply and Pricing Trends
Supply increased in 2015 and is at an all-time high and the number of sales was flat compared to the previous year. Thus, our ratio of sales to inventory to nearly 3 years supply. This is in contrast to St. Simons and the surrounding markets where an increase in the number of sales has brought housing inventories to all time lows.
There are currently 33 cottages that have been on the market for 400 days or longer with 20 being on the market for over 800 days or longer. The high number of Days on Market (DOM) is an indicator that many of Sea Island’s homes are overpriced.
We anticipate that pricing will continue to adjust downward into 2016 for marsh and Interior cottages that need renovation and/or are located north island. A limited supply of newly renovated cottages and well maintained recently built homes will continue to bring a premium in all locations.
Page Aiken & Randall Moody
Sea Island, St. Simons and surrounding areas... Working as a team and utilizing the extensive marketing resources of Sotheby's International and its offices throughout the US, Europe, Middle East and Asia, Page Aiken and Randall Moody leverage experience and resources to provide the best possible marketing solution for every client they represent.
Contact Page Aiken at 404-754-2030 (cell) or Randall Moody at 912-230-4653 (cell)
About Page Aiken Page is a seventh generation native of St. Simons Island. His family has enjoyed being members of Sea Island since it opened in 1927. Having grown up on Sea Island and St. Simons, Page has a love and appreciation for the amenities and lifestyle Sea Island offers. His international real estate career began in 1987 with Royal LePage, a Canadian based International Real Estate firm and in 1993, he founded the Moscow, Russia office of Colliers International. As a Sotheby’s agent, he leverages the Sotheby’s International brand and marketing resources for every home he represents.
Page gives back to the community and serves as Discipleship Chair at Wesley UMC and serves with the Cub Scouts as the COR for Pack 227. He serves on the boards of Centered for Life and the Christian Ministries Foundation.
About Randall Moody Randall grew up in South Georgia and moved to St. Simons Island in 1994 with his wife Sheila, they live in Island Club on St. Simons Island and have three beautiful children, Taylor, Ansley and Meritt.
Randall’s combined passion for people and for the heritage and lifestyle of the Golden Isles gives him the knowledge that only time and experience can provide. Randall is highly knowledgeable about the local market and is a seasoned professional when it comes to negotiations. Randall is a lifetime member of the Golden Isles Association of Realtors Circle of Excellence and proud recipient of the Oglethorpe Award.
Randall has consistently ranked among the top producers in the Golden Isles; Randall was honored to be the top selling agent in the DeLoach Sotheby’s International Realty office on St. Simons Island for 2013.