Realtors Predict House Prices Will Plummet in These 7 Popular Beach Towns

Beach towns aren’t known for their affordable real estate, but that doesn’t mean there aren’t deals to be found. If you know where to look, opportunities to score a great deal are popping up in many places.

Want your own little slice of paradise without sacrificing your ability to get ahead financially? Here are seven beach towns where real estate agents predict prices will plummet.

All median home price figures come from Redfin and are for September.

Wilmington is located just two hours from Raleigh and is “a great option for those drawn to the beach lifestyle without the expense of high-demand coastal areas,” says Rachel Stringer, a real estate agent with Raleigh Realty in North Carolina.

The median home price in Wilmington is $475,000, and that is up 23.5% over the past year. However, Stringer says prices might start softening in this area as properties sit longer on the market and inventory increases.

She adds that Wilmington has a desirable quality of life, especially when compared to more expensive beach towns.

“Wilmington is a lively city with a lot going on, from historic sites to beach fun,” String says. “So, getting into the market here while prices are favorable can be a smart choice for many buyers.”

Florida has some affordable pockets, including in Daytona Beach on the Atlantic Ocean side of the state. Home prices are down 8.9% year-over-year to a median of $272,500.

“The Daytona Beach region has shown some softening in home prices lately,” says Bob Anarumo, a real estate agent with Florida Realty Marketplace. “While still desirable for its coastal charm and proximity to major cities, the influx of inventory has given buyers a bit more leverage than they had a year or two ago.”

Atlantic Beach is another North Carolina beach town where Stringer says prices are starting to weaken. The median price has fallen to $590,000, a decrease of 9.92% year-over-year.

“Buyers who’ve been priced out of other beach areas are noticing Atlantic Beach for its affordability compared to more expensive spots,” Stringer says. “With a relaxed atmosphere and plenty of local charm, it’s an ideal spot for buyers looking to enjoy the coast without breaking the bank.”

Prices are up in Ocean City year over year, but just barely. They stand at $438,000, a 2.9% rise.

Mitchell G. David, founder of the Beach Life Premier Team in Maryland, notes that there is increased inventory in Ocean City, and that many buyers might be shifting away from crowded beach towns and toward more quiet areas.

He adds that Ocean City has a vibrant boardwalk, an abundance of amenities, and a lower cost of living compared to other coastal towns.

Port Isabel might be worth a look for bargain hunters who want a beach home.

“Recently, I’ve noticed a slight cooling in prices, presenting a unique opportunity for both new buyers and those looking to invest in coastal property,” says Brady Bridges, broker owner of Reside Real Estate in Texas.

He recommends looking at Port Isabel, which has seen prices drop 10.7% year-over-year to a median of $310,000.

“Port Isabel is a hidden gem that’s long been popular for its scenic views, access to the beach, and vibrant local culture,” Bridges says. “But with the current market adjustment, more people can afford to make their home here.”

Michigan City is located along the southern shore of Lake Michigan. It has seen some cooling in its real estate market after a couple of years of significant price increases, says Matt Vukovich, president of Matt Buys Indiana Houses.

Prices in the area have fallen 26.6% year-over-year to a median of $130,250.

“The real estate boom driven by remote workers and second-home buyers during the pandemic has slowed down, and homes that were once flying off the market are now sitting for longer periods, giving buyers more leverage,” Vukovich says.

The Outer Banks region has an appeal far beyond the borders of North Carolina, and Stringer says that prices there have been softening in recent years. Since June of this year, prices have been dropping monthly.

“Some areas across the Outer Banks have reported price reductions, making it an appealing choice for those who want beachfront living or investment property at a lower entry point,” Stringer says.

She adds that the area has always attracted a range of buyers. “With prices dipping, it’s a window of opportunity for many to get in,” she says.

Buying a home in a beach town doesn’t have to break the budget if you are willing to be flexible in your search.

To make a smart homeowner money move, you may need to hold out for a dip in the market. It also helps to look in the off-season or to expand your parameters to other beach towns.

Those who are willing to do a little research and to be flexible should be able to discover an affordable beach destination that is right for them.