Real estate prices in Cape Charles are insane, but why exactly is that? To be sure, coastal, resort area real estate is exploding all over. Resort areas all over tend to be higher due to a combination of factors. Let’s look…
Beaches and access to recreational amenities like golf courses, water sports, and cultural attractions make these areas highly desirable for vacationing and living, driving up demand for real estate.
Many resort areas, especially Cape Charles, have limited available properties for sale (including land). This scarcity can drive up prices as demand exceeds supply.
Cape Charles has become a hot spot for second homes and short-term rental/vacation properties. Wealthier individuals and families may purchase properties in these areas for their own leisure use, but also as an investment and for passive income. The wealthy have put more pressure on demand, and have initiated a competition for limited available properties.
Exposure via shows like HDTV’s Beachfront Bargain Hunt, as well as numerous articles in zines such as Coastal Living helped to create a glossy illusory narrative, so much so that people seem to be willing to pay a premium for the perceived status and lifestyle that comes with owning a property in a highly promoted area.
Tourism, pro or con, has significantly changed the face and feel of Cape Charles. The influx of tourists leads to demand for accommodations, restaurants, entertainment, and services, which in turn creates higher property values.
It would be wrong to omit the emotional appeal of owning property in a beach town. For many people, owning property in a resort area fulfills a lifelong dream or a even nourishes a nostalgic/sentimental attachment. This emotional appeal can lead buyers to be willing to pay higher prices.
All these factors contribute to the premium pricing we are seeing in Cape Charles. Is it worth it?
About the Author
Absolutely YES, it is “worth it”.
Oh my, your first tourist article that didn’t bash the people that have become the lifeline for this failing town.
Editor’s Note: With all due respect, your opinion is just your opinion. Why are old, rich white people like this ;-(
The Cape Charles Mirror is so fun, more fun than a barrel of monkeys even, and that is really saying something!
We bought in Cape Charles in 2011. We sold last year for 2 1/2 times what we paid. It was an all cash deal. We were so happy when we bought in Cape Charles. We were happier when we sold. So much change in such a short time.
Cape Charles and many other resort areas meteoric rise in RE prices is in large part due to the facts in the article above as well as from a combination of ultra low residential real estate mortgage rates and leveraging those rates into a short term rental businesses. If shorter term commercial mortgages applied to this situation the market would be much much different. Even 7.5% at 30 years can turn a profit. Eventually some investors will be forced to liquidate when rents cannot cover their nut if rentals go soft and prices will fall. If you don’t rent your property your gift is higher taxes from assessments until one day you finally sell to the next landlord. Your kids will make out well when they ship you to the home. Basically thank your Uncle Sam. At some point soon though with T-Bills returning 5.5% and rising with no risk, renters, repairs or real estate taxes some folks that have savings will just sit back and collect interest.
RE cash deals are also a great way to launder money, no questions asked, and no hassles with the banks.
The Real Estate in the town of Cape Charles is ridiculously high. How many beaches are there in the town of Cape Charles? What are the attractions in the town?
World class pickle ball and corn hole!
Only one crowded beach with an overflowing sh*tter on the south end. Reverse parking which adds to the different dialect from patient people from the north waiting to park.
And the endless parade of golf carts zooming around town. There is no one attraction in this town. But it’s an idea place to unwind. Enjoy!
PUT PUT GOLF
Bubble!
It is not just in Cape Charles. A two bedroom house on our creek just sold for $2 million. Three lots also on the creek sold for $1/2 million each.