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Bobby J

Beach Fanatic
Apr 18, 2005
4,043
600
Blue Mountain beach
www.lifeonshore.com
I think something has changed in this market. We have had a hard time putting specific clients in properties and have found in certain areas some of the lower price points and deals are gone! :dunno:

I am sure we will have another wave of these deals but they sure get gobbled up fast. With that said, we have begun to sell the low hanging lots. Cash buyers seem to be interested in snagging a few of those as the cheaper homes are leaving the 30A market. I predict over the next 6 months a few stable builders will begin to break ground on inexpensive lots.
 

melscuba

Beach Fanatic
Apr 22, 2009
260
38
Roswell, Ga hoping SoWal someday
I think something has changed in this market. We have had a hard time putting specific clients in properties and have found in certain areas some of the lower price points and deals are gone! :dunno:

I am sure we will have another wave of these deals but they sure get gobbled up fast. With that said, we have begun to sell the low hanging lots. Cash buyers seem to be interested in snagging a few of those as the cheaper homes are leaving the 30A market. I predict over the next 6 months a few stable builders will begin to break ground on inexpensive lots.

I see the same thing as far as price points. My question is, "Won't the deals that have been recently sold drive the market price down on the existing homes for sale?" I would guess they won't appraise at a higher sale price. My theory... and it's just that... is the current sellers are wiping their brow thinking, "o.k., now all the fire sale homes are gone and I can keep asking my price for my home." Isn't that unrealistic? I keep thinking they will have to drop their prices to meet the price point of the homes that have actually sold. At any rate, we're currently landing on the lot side of things.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
My theory... and it's just that... is the current sellers are wiping their brow thinking, "o.k., now all the fire sale homes are gone and I can keep asking my price for my home." Isn't that unrealistic?

Yes, that is unrealistic, melscuba. Good point. If selling price of bank owned houses in a particular area are $500,000, yet the regular sale listings are priced at $750,000, after all the $500,000 priced homes are sold, there will be a separation between buyers and sellers, and we won't see homes selling until the prices come down to meet the buyers' level of perception of value. Also, if all the comps are at $500,000, you won't find appraisers (which are needed if there is a lender involved) putting a value of $750,000 on the property.

I still say that 90% of the current inventory is overpriced. The good stuff, as Bobby J has pointed out, is getting snatched up as quickly as it comes on the market, and often with multiple offers. On the good values, we are seeing very strong sales to list price ratios, and I know of some selling above list price, because of multiple offers driving the buyers to compete.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
You are right, Bobby J, about the lots. Mostly cash buyers will be looking for the best deals, and when you can buy lots located south of 30A for $65,000 and just north of 30A for $35,000, and inventory is twice as high as it should be, buyers will begin to take notice and buy and hold. For those of you who don't keep track of prices, those prices I give above are real examples of what I'm seeing right now. In the Lakewood area of Seagrove, two lots went pending two days ago, listed at $65,000. Also, earlier this week, a lot sold in Lakeside at Blue Mtn for $35,000 and a new one came on the market in there for $35,000. (These are not my listings and are not to be mistaken as advertising for these particular properties. Just using real examples.)
 

fisher

Beach Fanatic
Sep 19, 2005
822
76
It is not the same market is was 6 months ago folks! Next phase are the lots....


No doubt.

I think lots in Phase II and III of Watercolor and non waterfront lots in Watersound will fall into the $100k to $150k range over the next 2 years. Alys will realize that they will need to drop prices considerably in order to move inventory. Lots in there will need to go to the $200k range to really begin selling at a reasonable pace.
 
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