Real Estate - Talking Trends with Patrick Dunn

As the year comes to a close, Elegant Island Living once again welcomes Patrick Dunn of Sea Island Properties to share his insight about the current state of the real estate market on St. Simons and Sea Island. Patrick has been the top producing agent in Glynn County since 2012 with more than $1.3 billion in sales and pending contracts. While Patrick’s successful numbers speak volumes, equally impressive is his roster of clients that includes top PGA Tour players, major corporate CEOs, and former Congressmen, as well as numerous other buyers and sellers who have become friends. Not only does Patrick have his pulse on the market, he and his family are proud to call this area home.

When it comes to discussing the pros and cons of the current market and any recent trends seen locally or developing nationally that might affect us locally, Patrick’s expertise and extensive knowledge of the area make him the perfect person to break it down for us.

What is the state of the Sea Island Real Estate Market for 2024?

In the ever-steady Sea Island market, we've witnessed remarkable stability over recent years. While demand remains robust, it has found a more measured rhythm compared to the fervor of 2021 and 2022. Buyers now enjoy increased negotiating power, yet Sellers can still command a premium by pricing their homes strategically from the outset. With prices on the rise in many areas, sellers can unlock substantial value through effective property marketing. However, for those keen on staying in Sea Island, be prepared to invest in your next property at a premium. Sea Island's real estate allure persists, with a surge in individuals making it their permanent residence. In a scenario reminiscent of limited inventory seen in places like Japan or San Francisco, finding a Sea Island home under $4 million is a rare gem. The luxury resort real estate market, especially about $5 million, caters to discerning buyers with specific preferences, often making it their third home purchase with the luxury of time on their side.

What is the state of the St. Simons Island Real Estate Market for 2024?

The real estate scene on Saint Simons Island showcases a pronounced preference for single-family homes despite market fluctuations across the islands. It’s an evident sellers’ market with notably reduced inventory levels in the Golden Isles, where luxury homes and communities like Sea Island, the Island Club at Retreat Hawkins Island, Frederica Township, and East Beach stand out, although their availability falls short of the norm. Condos, especially those without rental restrictions, are in high demand, offering a low-maintenance lifestyle, attracting those seeking second homes or investment properties. The prime condo locations, notably on the southern end of St. Simons Island, are alluring to buyers due to their convenient access to the beach and key island attractions. While affordable single-family homes usually start at around $500,000, particularly in the mid-north and mid-south sections, the prevailing trend highlights the market’s strength due to the persisting imbalance between demand and available inventory. This housing shortage intensifies competition, especially for middle-income buyers, limiting their access to only about 23% of available listings nationwide, significantly down from 50% just five years ago.

Are buyers still purchasing with cash?

Yes, especially deals over the $3 million mark.  In the higher price range, we still see many cash buyers; however, sales under $3 million are generally financed deals. 

How do opportunities for agents in the current market differ from those in past years?

Over the past few years, the real estate market operated in a highly reactionary manner, offering opportunities to virtually any agent. However, the current market landscape demands a proactive approach. This entails gaining a deep understanding of the specific desires and requirements of individual clients or a few clients and effectively communicating why a particular property is valuable within the current market context. This is where agents can truly differentiate themselves and provide added value.

Moreover, navigating this market requires diligence, particularly when dealing with sellers of luxury second homes who prefer not to list their properties publicly on the MLS. In the past, such properties were often referred to as "pocket listings," but it's worth noting that these came with significant limitations.

In essence, the contemporary real estate environment places a premium on understanding client needs, articulating value, and discreetly locating desirable deals, all while acknowledging the evolving landscape of property listings.

Is a new home build still very desirable? What about remodels?

There are some prime real estate opportunities worth exploring on properties sold in the 60s, 70s, and 80s, where some of the best properties await. Many of these lots feature dated homes, presenting a choice: renovate or rebuild. Remodels are currently in high demand, especially for 1990s homes with good structural foundations. However, in our market, some 80s and 90s houses can't meet buyer expectations despite renovations. Sellers often aim for more than the lot value, resulting in extended market stays for these properties.

How does the Sea Island/St. Simons Lifestyle Attract Buyers?

Distinguished from other resort towns, Sea Island/St. Simons embodies a genuine community spirit. This is a key aspect of the area that we emphasize to new buyers. The allure here extends well beyond its physical beauty, as residents come together during hardships, such as storms we’ve encounter over the past years, and in good times to celebrate accomplishments and special occasions at our many community events like Taps at Twilight or Little League Opening Day, fostering a strong sense of unity. This camaraderie is palpable during these events, where everyone mingles, creating a unique and humble atmosphere. Lifestyle plays a pivotal role in choosing Sea Island/St. Simons as a home and were privileged to offer a diverse range of seasonal activities. Whether it's beachfront leisure or engaging in winter pursuits like pickleball, golf, horseback riding, or hunting at Broadfield, Sea Island caters to those seeking an active lifestyle surrounded by year-round beauty.

What types of homes are trending on Sea Island?

A prevailing trend I've observed is the widespread activation of every inch of property, with individuals creating enticing outdoor spaces featuring stylish outdoor kitchens, multiple sitting areas designed for optimal sun/shade, and landscaping adorned with firepits, all incorporating local products. Both newly constructed homes and recently remodeled ones are highly sought after by builders and trades, reflecting a preference for modern amenities.  Whether for primary residences or vacation homes, buyers increasingly prioritize move-in ready properties, with a turnkey, fully furnished appeal. The seamless transition is a key consideration for today's discerning buyers.

Where will the Sea Island High-End (Over $5 Million) Properties be in a few years?

Sea Island has become a prominent name due to the lifestyle it offers. We've assisted numerous buyers in relocating from other resort towns in search of a more intimate community, free from crowds and traffic while providing top-tier recreation. Anticipating a robust demand for high-end homes, our community's unique appeal lies in the Anschutz's family's continuous efforts and improvements, such as the beach re-nourishment project and enhancements at The Cloister. This has significantly boosted interest in Sea Island, especially in high-end rentals, as seen in the rise of bookings. While some prefer older, beautiful legacy properties, others seek new, furnished constructions, and we have a mix of both available and upcoming properties that hold unparalleled value. This significance of location cannot be overstated, and while existing improvements can be altered or renovated, the key remains in the location itself.

We’re not asking Patrick to give us market predictions, because we’re certain that he can create positive results for a buyer or seller no matter the status of the market. His observations lead us to the conclusion that the Sea Island/St. Simons Island community is still the best place to be and those of us lucky enough to live, work, and play here should consider ourselves fortunate. If you’re ready to make the move here to join us, we know a guy…

Patrick Dunn • Sea Island Properties

351 Sea Island Road • St. Simons Island

912.222.0142 • patrickdunn@seaisland.com

Equal Housing Opportunity. If your property is currently listed with another real estate firm, this is not intended to be a solicitation for your business. The price information and material contained herein, is intended to provide general information about the properties of Sea Island Acquisition, LLC. These proposed prices are subject to change or cancellation at any time. We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin.