In general, beachfront properties will almost always command a higher price in Galveston than beachside or "dry land" properties. That said, in 2005 and 2006, prices were greatly inflated in Galveston and beachfront properties were among the highest. Since then Galveston has experienced a downturn in the real estate market, along with the rest of the country, as well as a major hurricane that threatened beachfront, and in some cases, destroyed beachfront homes. The hurricane and subsequent insurance claims also has meant greater insurance premiums for beachfront, which keeps some buyers away and drives down the prices.
Galveston is waiting to see what the regrowth of the vegetation line will mean for some beachfront homes, given the State of Texas's policy of eminent domain. So, in the interim. beachfront properties are well below the 2005-6 prices. However, the general belief is that prices have bottomed out, and once vegetation lines are re-established and the city's plan for beach reconstruction is finalized, you are very likely to see those prices rise again in the next few years. Texas beaches are still the cheapest in the nation for homes.
Roger A. Sturgell and Cynthia E. Darwin, Better Homes Realty, Texas 409.539.5181