Destin trends

Are the holidays a good time to list our house for sale?

Dec 12th, 2010
by edsmith.
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Your personal need or motivation to sell should be the biggest determining factor as to timing. The Housing Affordability Index reached a new high this October at 184.2.  The index is based on several factors including average wages, real estate prices and interest rates. For comparison, an index of less than 100 means it is difficult to buy.
 
Simply put, homes are more affordable now than at any other time since the index was created. If you need to sell now, you need to list now.  You never know when that perfect buyer for your home may come knocking!

February Update

Feb 17th, 2010
by edsmith.
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The news of the day is the relocation of our office this month. We recently executed an agreement to lease our Main Street building to First Florida Bank. That building is 8,500 square feet and was originally built for specific use as a bank. With the vault, drive-thru lanes, night deposit and fire-proof rooms still intact, it was perfect for a bank that needs to move in a hurry.
 
So, we have moved our office into another building that we own at 725 Harbor Blvd, less than 2 blocks west of our former location. It is just less than 4,000 square feet and is perfectly suited for our use. This building was Destin’s first real estate office back in 1973 and was then called Cox and Young.
 
We are excited about the new location and the increased exposure we will gain from the Highway 98 frontage. We are easy to find — We are situated directly between Golden Corral and McDonald’s!
 
Also of note is the fact that Terri and I are ranked as the number 6 residential team in Florida by RE/MAX for 2009. The December stats will not be released until after the RE/MAX Int’l convention next month, so our final ranking may go up or down a little.
 

The Economic Front

Good news as interest rates continue their downward trend. 30 year fixed rates are now hovering around 4.75%. 5-year ARM’s are around 3.75%.
 
More good news … There are fixed rate jumbo products (stimulus) in the 5.25% range. These are loans that exceed $417,000 but are less than the established limit for the county within which the property is situated. The individual county limits may be viewed at:

 
With even lower interest rates and still declining real estate values nationwide, the housing affordability index is off the charts.

 
So, you would think that with housing affordability at an all time record high, homes should just be flying off the shelves, right?
 
Unfortunately, the credit markets are still tight and mortgage insurance is still non-existent, with the exception of course of government programs such as VA, FHA, and (Freddie Mac) Rural Housing. Consequently, cash buyers are taking advantage of the best deals out there on the market.
 
Condo financing (overall) is still about as tight as a vault door. A few portfolio programs are available and a limited number of investors are offering some end-user funding for certain individual condo units. The mortgage market has improved, but it still has a very long way to go.

The Local Trend
January was the fifth consecutive month of increased sales transaction numbers as compared with last year. As you can see from the reports below, single family, residential lots, condos and townhomes are all up.

 
There was a single $23,519,400 sales transaction for 116 condos at Waterscape on Okaloosa Island that skews the data. It appears to be a partnership buyout, so there is no significant resulting impact on market values.
 

Increased numbers of distress sales are expected, but 2010 should see continued improvement. Sales numbers are rising and appreciation may be slowly coming into focus.

Business Looking Up in Florida

May 8th, 2009
by edsmith.
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Remembering that real estate was the first “industry” to feel the impact of a weakening economy, it stands to reason that it may lead way to recovery.

Real estate sales transactions have been increasing around most of the rest of the state for the past year or so. The Emerald Coast, or Northwest Florida in general is typically believed to trail the rest of the state by from 12 to 18 months, depending upon whom you ask.

So, sales transactions are finally increasing here as well. Not as compared with last year, but as compared with recent months. This 2009 positive trend is the result of a number of things:

1. Interest rates are incredibly low.
2. Sales and asking prices are incredibly low.
3. Inventory levels are high – Choices are plentiful.
4. $8,000 tax credit for first time buyers.
5. An overall sense that prices will not decline much further.

Moreover, we have never seen low mortgage interest rates and low housing prices at the same time. This is an unprecedented opportunity for buyers. This helps to explain why we are seeing so many institutional buyers and investors coming back into the market. We are being approached by REITs and others, searching for investment properties, both residential and commercial.

You cannot turn a battleship on a  dime, and neither will this economy rebound in an instant.  What we are seeing now are the early signs of a real estate recovery. Some prices may very well go lower before they go higher, but as sales transaction numbers continue to improve, the brighter becomes the light at the end of the tunnel.