Like our diverse population, Cape Ann’s waterfront properties have dramatically different types of views. But for this analysis, let’s keep it simple and boil them down to 2 types: open ocean/endless horizon views vs. boat/harbor/beach views. Eastern and northern facing properties tend to be in the “open ocean” category with their dramatic sunrises, crashing ocean front and long horizon views to NH and ME. The boat/harbor/beach view properties tend to be on the western and southern side of Cape Ann, with many on one side or the other of the Annisquam River, a deep, tidal, salt water estuary about 5 miles long that’s open to the Atlantic on both ends. Gloucester’s long and wide working harbor accounts for the vast majority of the harbor views.
So, the oft asked question with no hard line answer is: which view is worth more? It might help if we take a look at the characteristics and selling prices of 2 opposing markets: 2006 and 2010. The median sales price in 2006 was $1.75M. For that price, you’d be living on Gloucester’s Back Shore or in Rockport facing Twin Lights, both characterized as expansive, ocean views. The house would be a 75 – 120 year old, 2500 – 3500 sq. ft. property and have relatively updated systems, kitchens and baths. You might even be able to “drive up” to your view and your front door rather than having to walk through the house to see it.
The 2010 market has so far played out a bit differently: the median sales price has been $1.3M. (Have I got your attention yet?) And while your money would still buy 2500 – 3500 sq. ft. of house, that’s where the similarities end. The majority of properties sold this year had boat/harbor/beach views and they were much younger, only 10 – 30 years old. One of them came with a fully permitted deep water dock. Of course, just like in 2006, $1.75M+ would get you a crashing, horizon view on the Back Shore or vistas of Twin Lights. But the “bricks and mortar” weren’t in any better shape than in the $1.3M properties.
So is it worth $350,000 more to look at open ocean? I think this is where we started.
