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.