An update (Dec 2008) on waterfront values:
Obviously being fewer in number and greater in demand, waterfront properties hold their value well in Provincetown. And I agree with my colleague Bob O'Malley, who has a much longer perspective than I (I started in real estate here in 1993) that generalization is perilous because of the small numbers we work with.
And of course there are niceties: West End is in higher demand than East, new constrction with all the bells and whistles(yes s/s and granite Im afraid) sells faster and at a higher price than older conversions; parking is VERY important; and the right to do WEEKLY rentals is critical.
Here are some telling examples:
In 2005 and 2006 brand new units in the East End(at September Morn) were selling at $1200/sf
In Dec 2006 a unit sold at Fisherman;s Cove ( an '80's conversion) for $510,000 ( 1Br with parking, direct water view, 470 sf) =$1085/sf
In Dec 2008 a 1 Br at Jones Locker with parking and good but not great water views (a late 80's conversion, the unit upgraded 2 yrs ago) is selling for about $460,000 for 600 sf =$765/sf
I think the old rule of thumb--$800 to - $1000 /sf (dependiing upon the niceties), holds.
Generally speaking the decline in water front in Provincetown has been about 15-20% since 2005, the peak in this reporter's opinion. but one has to be very wary when looking at statistics in our market. As we are a tiny Town, the data can be skewed by just a few sales. And water front values also vary dramatically from the Truro line to the far West End.
The second response to this question is fraught with errors. First, 476 Commercial St., is not on the water. Second, there are two adjacent properties that were in joint ownership. The one that sold was a small but very cute cottage at the rear of the property, on a separate parcel. The one that is for sale is a multi-unit with 5 or 6 apartments. It is a true Provincetown landmark building and fairly priced in my opinion. This is not a flip but a totally separate listing.
Even though they are my competitors, the comments about the listing agent is totally unfair. She is a 1st class pro!
I love Provincetown...My mother in law studied at the Cape School of Art for many years, and we have quite a bit of art that was created in Provincetown.
To answer your question, there has been about a 25% decline in the median home value in Provincetown over the last 12 months.
I hope this helps.