Study: Waterfront homes much pricier than traditional homes
Posted on Friday, September 12, 2014 at 9:17:20 AM
Are you interested in affordable residential financing rates and moving to a home located on the water? If so, you can expect to encounter much higher prices, according to a recent study conducted by Zillow.
The analysis showed that the average oceanfront or lakefront single-family home cost more than twice the median price of all homes. In some places, a waterfront home could be worth 10 times the price of a non-waterfront home.
"Waterfront properties are both relatively scarce and highly coveted, and that high demand and limited supply leads to higher home prices," said Zillow chief economist Stan Humphries. "Additionally, added insurance, floods, environmental mitigation and infrastructure costs are often part of the tab when buying a waterfront home."
Zillow reported that the median single-family home was priced at $171,600. The median waterfront home, on the other hand, was valued at $370,900.
Many of these waterfront homes are used for vacation purposes as well, and that particular market is strong, despite the price. According to an annual report from the National Association of Realtors, vacation home sales were strong last year, with a 29.7 percent surge to an estimated total of 717,000 units sold.