"Picture waking up to the sound of the Atlantic Ocean or stepping out of your home directly onto the beach. Oceanfront living in Melbourne Beach is a dream—and it’s still the top choice in 2024. But will it continue to reign in 2025?"

As a top-producing agent in 2024, I’ve helped clients buy and sell some of Melbourne Beach's most sought-after oceanfront properties. Let’s look at demand, pricing trends, insurance challenges, and what makes this area so desirable.

Demand for Oceanfront Properties in 2024

In 2024, I sold two oceanfront properties: a $850K condo at 110 Warsteiner Way and a $2.5M home at 3053 S Highway A1A. The condo took 50 days to sell, while the home sold in just 10. This shows the strong demand for oceanfront living.

Across Melbourne Beach, 47 oceanfront properties sold last year—33 single-family homes and 14 condos/townhouses. 40% of these sold in under 30 days, and nearly 60% sold in 60 days or less. Buyers love the direct beach access and stunning views.

Pricing Trends in Melbourne Beach

Prices for oceanfront properties in Melbourne Beach reflect their high demand. The condo at 110 Warsteiner Way sold for $423 per square foot, while the home at 3053 S Highway A1A sold for $1,133 per square foot, thanks to its new construction and prime location.

In 2024, the average sale price for oceanfront properties was $2M. Single-family homes averaged $2.45M, while condos/townhouses averaged $844K. With limited inventory, prices are likely to stay strong, though softening interest rates could cool the high-end market.

Insurance Considerations

Insurance costs have been a challenge in Florida, especially along the coast. For the $2.5M home I sold, insurance quotes reached $15K per year due to flood and wind risks. The $850K condo had some relief through HOA coverage, but individual policies still cost over $5K.Despite the high insurance costs, many buyers of properties over $2M paid with cash, avoiding lender insurance requirements. My clients at 3053 S Highway A1A were able to navigate this by choosing an elevated property with storm-resistant features.

Why Melbourne Beach Remains Popular

Both the $850K condo and the $2.5M home offer something special—easy beach access, quiet streets, and a charming local community. The condo had gated amenities, while the home offered luxury features and stunning ocean views.

Properties in Melbourne Beach sell quickly. The average time on market was 81 days (50 days for the median sale). Even the $5M sale at 301 Oak Street moved in just 23 days, showing strong buyer interest.

2025 Outlook

The oceanfront market in Melbourne Beach is likely to remain strong in 2025. Retirees, remote workers, and luxury buyers are expected to keep driving demand. With limited inventory, properties will likely continue to hold their value.

Conclusion

Is oceanfront living still a top choice in Melbourne Beach in 2025? Absolutely. The demand, pricing trends, and appeal of the area make it clear that buyers are willing to pay a premium for a piece of the Atlantic. Insurance remains a hurdle, but the lifestyle makes it all worth it.
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Ready to make your oceanfront dream a reality? Let me help you navigate this market. Contact me today!

Analysis Notes
My Sales:
Condo: $850K, 2007 sq ft, $423/sq ft, 50 DOM
Home: $2.5M, 2206 sq ft, $1,133/sq ft, 10 DOM
Oceanfront Market:Total sales: 47 (33 homes, 14 condos)
Average price: $2M, median: $1.3MPrice/sq ft: $717 overall, $820 for homes, $445 for condos
DOM: Average 81, median 50; 40% sold in under 30 days
Cash deals: 85% (40 out of 47)