GALVESTON – Galveston’s real estate market is experiencing a strong surge as buyers shift their attention to the Gulf Island located about 50 miles southeast of Houston. Its short driving distance makes Galveston an attractive commuter-friendly option and a safer vacation alternative during the coronavirus pandemic.
“Sales are red hot now,” says Claire Reiswerg, co-owner and broker of Galveston-based Sand ’N Sea Properties. “People want a second home closer to home, within driving distance. Homes here go under contract very quickly — one of our agents said anywhere from three hours to three days. Vacation rentals are seeing the same demand.”
Vincent “VJ” Tramonte of Joe Tramonte Realty, who also chairs the Galveston Economic Development Partnership, notes that the local market struggled in March and April but began a sharp recovery in May.
“Once the City of Galveston reopened restaurants, beaches and vacation rentals on May 1, the real estate market began to pick up significantly. Many properties are receiving multiple offers shortly after listing,” Tramonte explains. “We hope this economic uptick helps pull us out of the COVID doldrums.”
As the pandemic extended into the summer months, Galveston’s appeal grew.
“COVID has made people realize they might not be able to visit their usual vacation destinations — Las Vegas, New York, New Orleans, Aspen or San Francisco — for a long while,” Reiswerg adds.
Kelly Kelley, co-owner of ReMax Leading Edge, agrees that buyers are choosing Galveston in lieu of international travel. “Those who own second homes in places like Aspen may still travel there, but many are opting for Galveston instead of flying overseas.”
Smaller homes under 1,500 square feet are especially popular. In Texas markets, fixer-uppers priced at $150–$200 per square foot are attractive, while renovated small historic homes can reach $300 per square foot or more.
For the first six months of 2020, the median sales price for all residential properties on Galveston Island was $310,000, up from $290,000 for the same period in 2019. In the West End, the median sales price for the first half of 2020 rose to $405,725, compared with more than $370,000 the prior year.
“Inventory is low across the board — about 2.8 months for single-family homes, condos and townhomes across the island,” Kelley says, describing the local market as “fast and furious.”
Buyers are drawn to features that blend indoor and outdoor living: elevated pools on beachfront decks that offer separation from the sand, and innovative stacking patio doors that open the living area to a veranda are in high demand.
“Some houses we’re selling are being used like primary homes — $400,000 properties move very quickly,” says West End realtor Carolyn Gaido, a third-generation Galvestonian from the family behind the island’s well-known Gaido’s seafood restaurant. “You can’t find anything for less than $300,000 on the West End. Most properties are $500,000 and up. Buyers want swimming pools or beachfront locations and are willing to pay top dollar. Many of these shoppers would formerly have been flying to the Bahamas or other destinations.”
Sales are also strong in neighborhoods south of Broadway and north of the seawall. “Buyers are still investing in smaller homes they can renovate for personal use because they’re close to the seawall and beaches, and there’s a continuous need for more vacation rentals,” Tramonte says.
“What’s encouraging is that sales include a wide variety of properties: condos on the beach, downtown units and seawall-facing residences,” Tramonte adds. While large commercial sales have slowed somewhat, investors remain interested in multifamily purchases.
Galveston’s resident population is about 53,956, but the number of people on the island typically doubles during an average day because of commuters, college students, second homeowners and tourists. Before the pandemic, Galveston welcomed approximately 7.2 million visitors annually and hosted around 20,000 commuting employees each day.
Beachfront homes are commanding higher prices than a year ago, whether they are first, second or third row, or offer bay views. Even so, local prices remain far below West Coast beach-home valuations. Many Houston residents are choosing Galveston for longer stays in a quieter environment, often seeking properties that include space suitable for a home office.
New Urbanism by Duany Plater-Zyberk
Beachtown, a development on the east end of Galveston Island, is one of the rare coastal projects in the South where natural conditions actually help widen the beaches. Conceived as a walkable resort community, Beachtown was inspired by the Seaside development on Florida’s Panhandle and reflects New Urbanism principles. Designed by Duany Plater-Zyberk and mindful of Galveston’s architectural heritage, the neighborhood emphasizes welcoming porches and traditional, time-honored designs.
Initial plans for Beachtown called for private retail, 306 single-family homes, 200 multifamily units, 250 retirement residences and a 150-room hotel, but hurricanes such as Katrina and Ike slowed progress. Today, roughly 90 single-family homes stand in Beachtown, with developer Tofigh Shirazi building 12 to 15 new homes annually, priced from about $700,000 up to $6 million.
“People are realizing we’re just an hour from Houston and situated amid an 800-acre nature reserve,” Shirazi says. “The value of living in a walkable community is becoming clearer to many buyers.”
Tom Schwenk of Tom’s Galveston Real Estate notes a notable influx of younger buyers, many of whom telecommute.
“I’m seeing more ‘Islanders by Choice’ moving here,” Schwenk says. “We’re attracting people who want to raise families or retire in Galveston. Because of COVID, many don’t want to remain cooped up in the city.”
The Galveston Historical Foundation reported strong interest in virtual tours of the city’s historic homes, several of which survived the devastating 1900 hurricane. Faced with coronavirus restrictions, the foundation moved its annual historic home tour online in 2020.
“Our virtual home tour garnered more than 25,000 views of four private homes on the annual tour and was a successful adaptation,” says Will Wright, Chief Creative Officer of the Galveston Historical Foundation. “Although it doesn’t replace our in-person event, the virtual format received a great response, and we’ll likely continue some elements.”
Wright, who purchased his historic Galveston home seven years ago, reflects on how much the market has changed. “I wouldn’t want to be buying our house now — the market is so different that we probably couldn’t acquire the same property today.”
The COVID-19 pandemic has heightened Galveston’s appeal in 2020, but the island’s charm long predates the virus. Galveston was once the capital of the Republic of Texas and the state’s largest city. Its cultural resonance includes Glen Campbell’s 1969 hit “Galveston,” which was recorded by many artists and sold millions of copies in multiple versions.
“People are seeking a lifestyle change,” says Michele F. Hay, Vice President of the Galveston Economic Development Partnership. “Galveston offers a slower pace and a retreat from the hustle and bustle.”
Aug. 10, 2020 Realty News Report Copyright 2020
Photo: Courtesy of Galveston Economic Development Partnership
File: Vacation Alternative: Galveston Home
