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flyforfun

Beach Fanatic
Oct 20, 2006
311
39
Birmingham, Al
Real Trend Report for Walton County in November shows a continued slide in volume and prices--

SFH sales volume down a whopping 31% and avg price down 20%, lowest monthly volume level in over 5 years

Condo volume down 18% and avg price way, way down by 48%

Lot sales volume down 24% and avg price up slightly by 5%


Interesting numbers, but until Walton County tax assessors office starts to move property taxes downward at a much faster rate, buyers are going to be less common and prices are going to continue to fall. Walton County continues to "rape" out of state property owners with high property taxes. There use to be a time when you could own a beach house, rent it out, pay the mortgage and actually make a profit....not any more. Property taxes sure went up a lot faster than they have been coming down, and that my friend has "killed the goose that laid the golden egg". Until property taxes start going down to sensible numbers, I can't in good conscience even recommend to any of my friends to invest in real estate down there.
 

JoshMclean

Beach Fanatic
Jan 15, 2007
995
128
Santa Rosa Beach
Here is a snippet from my 2008 end of year report. Statistics are directly from the MLS and are single family homes between Destin and Inlet Beach.


2008 has been a rough year for the economy in many different areas including Real Estate. We showed a sharp decrease in the average sales price in this area compared to years past. The average sales price for the area is now down between 2003-2004 levels. Total sales in 2008 (754) were over 20% higher than the low in 2006 (618). I strongly believe that sales will continue to rise with the deeply discounted homes that are now available.

2005
Total Homes Sold - 1,270 Average Sales Price- $802,072 Median Sales Price- $569,000 Inventory- 1,327

2006
Total Homes Sold- 618 Average Sales Price- $861,960 Median Sales Price- $558,750 Inventory- 2,366

2007
Total Homes Sold- 672 Average Sales Price- $858,516 Median Sales Price- $537,500 Inventory- 2,584
2008

Total Homes Sold- 754 Average Sales Price- $636,225 Median Sales Price- $395,000 Inventory- 2,458
 
Interesting numbers, but until Walton County tax assessors office starts to move property taxes downward at a much faster rate, buyers are going to be less common and prices are going to continue to fall. Walton County continues to "rape" out of state property owners with high property taxes. There use to be a time when you could own a beach house, rent it out, pay the mortgage and actually make a profit....not any more. Property taxes sure went up a lot faster than they have been coming down, and that my friend has "killed the goose that laid the golden egg". Until property taxes start going down to sensible numbers, I can't in good conscience even recommend to any of my friends to invest in real estate down there.

What about that lot on the corner of your street and Coopersmith, across and South from BZ's? I understand the bank is lookinf for 800,000. Someone could hire Artisan and still be in a great house there for under 1.4.

Don't you think if someone had a 5 bed/5 bath right there for 1.35 they could just about break even in an aggressive rental strategy?
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
Don't you think if someone had a 5 bed/5 bath right there for 1.35 they could just about break even in an aggressive rental strategy?

...does "aggressive rental strategy" encompass holding a fully-loaded .357 Magnum to the renter's crotch?

.
 

Matt J

SWGB
May 9, 2007
24,646
9,496
Interesting numbers, but until Walton County tax assessors office starts to move property taxes downward at a much faster rate, buyers are going to be less common and prices are going to continue to fall. Walton County continues to "rape" out of state property owners with high property taxes. There use to be a time when you could own a beach house, rent it out, pay the mortgage and actually make a profit....not any more. Property taxes sure went up a lot faster than they have been coming down, and that my friend has "killed the goose that laid the golden egg". Until property taxes start going down to sensible numbers, I can't in good conscience even recommend to any of my friends to invest in real estate down there.

If they do that how would the county afford and maintain the cutest little street sweeper for the bike path? Just saw that thing today and forgot to take a picture.
 
...does "aggressive rental strategy" encompass holding a fully-loaded .357 Magnum to the renter's crotch?

.

I was thinking more along the lines of renting it VRBO at a 15% discount off the great listing attached with a $6,000 supplemental advertising budget placed in the back of Coastal Living. The home I described to the Dr. would be immediately surrounded by homes valued at 3.5 to 5.5.



RESIDENCE:
Bedrooms: 5
Baths: 4.5
Occupancy: 10
BEDDING:
King: 1
Queen: 2
Twin: 2
FEATURES:
DVD
Gulf View
Bunk Beds
TV
Bedroom Balcony (Master Bedroom)
Jetted Tub
Porch
VCR
Stereo System
Non Smoking
Balcony

Shelly, Do you care to guess what the attached residence rents for consistently?
 
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ClintClint

Beach Fanatic
Jul 2, 2008
599
78
If they do that how would the county afford and maintain the cutest little street sweeper for the bike path? Just saw that thing today and forgot to take a picture.

Did that cute little sweeper have a blower attachment?:rotfl:
 

flyforfun

Beach Fanatic
Oct 20, 2006
311
39
Birmingham, Al
What about that lot on the corner of your street and Coopersmith, across and South from BZ's? I understand the bank is lookinf for 800,000. Someone could hire Artisan and still be in a great house there for under 1.4.

Don't you think if someone had a 5 bed/5 bath right there for 1.35 they could just about break even in an aggressive rental strategy?



Nope....who want's the financial risk? Build to sell... I wouldn't take the risk if you gave me the land! Who wants to own property down there and get raped by the county on property taxes every year? Your in a market with rapidly declining property values yet the cost of carrying the property is still excessive. My biggest expense on my rentals down there is not insurance but over inflated property taxes. You talking about "spreading the wealth"...this county has it down to an art! Real estate will not recover until owners who rent to vacationers can be in the black again, and this county's high property taxes prohibit that from happening.
 

30ashopper

SoWal Insider
Apr 30, 2008
6,846
3,471
56
Right here!
2005
Total Homes Sold - 1,270 Average Sales Price- $802,072 Median Sales Price- $569,000 Inventory- 1,327

2006
Total Homes Sold- 618 Average Sales Price- $861,960 Median Sales Price- $558,750 Inventory- 2,366

2007
Total Homes Sold- 672 Average Sales Price- $858,516 Median Sales Price- $537,500 Inventory- 2,584
2008

Total Homes Sold- 754 Average Sales Price- $636,225 Median Sales Price- $395,000 Inventory- 2,458

26.5% reduction in median price over one year, with inventory overhang decreasing 4.8%. That doesn't seem to be a very good sign of things to come.
 
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30ashopper

SoWal Insider
Apr 30, 2008
6,846
3,471
56
Right here!
Wow, I could buy my own McMansion in Burnt Pine for ~$750K? (775K list) I think that house was listed by the bank at over one million just a little while ago. You know things are tough when the banks are reducing their prices.
 
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