Area Foreclosures

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?

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?

.

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?

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?

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.

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.

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.

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

.....too much relative to the upcoming "new economy."

IMO we've wiped out entire classes of high net worth individuals with the bursting of the RE Bubble; the collapse of several financial institutions; and the failure of many hedge funds.

At this point, I think it foolhardy to make a multi-million dollar bet based on what may have worked in the past.

Before I guess what the rent is on this property, can you please give a breakdown including the initial sale price of the property plus the costs of furnishings, utilities, taxes, insurance, rental management, HOA fees and maintenance? Thanx

IMO we've wiped out entire classes of high net worth individuals with the bursting of the RE Bubble; the collapse of several financial institutions; and the failure of many hedge funds.

Actually what is left Walton Co. is "milking" with continued high property taxes. This county needs to cut its budget by 50% and give property owners a 50-70% property tax break for the next three years. Otherwise, your going to see more auctions, foreclosures, distressed property and high inventory.

Actually what is left Walton Co. is "milking" with continued high property taxes. This county needs to cut its budget by 50% and give property owners a 50-70% property tax break for the next three years. Otherwise, your going to see more auctions, foreclosures, distressed property and high inventory.

Sounds like you're painting a good picture for investing in property tax certificates in Walton County. There's usually an equal and opposite reaction to big moves in one direction.

.....too much relative to the upcoming "new economy."

IMO we've wiped out entire classes of high net worth individuals with the bursting of the RE Bubble; the collapse of several financial institutions; and the failure of many hedge funds.

At this point, I think it foolhardy to make a multi-million dollar bet based on what may have worked in the past.

Before I guess what the rent is on this property, can you please give a breakdown including the initial sale price of the property plus the costs of furnishings, utilities, taxes, insurance, rental management, HOA fees and maintenance? Thanx

Sorry, That's not my home and I don't think I should run the exercise on someone elses property. I figured their rental rates aren't sensitive and are already in the public domain. Maybe I should change the subject.

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.

I don't feel to bad about 750 home sales last year.

I don't feel to bad about 750 home sales last year.

Depends on your point of view. If you bought at the height of the frenzy with an interest only note that now needs to be refinanced because you can't afford to pay any principal or you've lost your job or you took a 40% hit in the market or... and you are now way, way under water, 200, 750 or even 1000 home sales at rapidly decreasing prices would make you feel really, really bad.

Depends on your point of view. If you bought at the height of the frenzy with an interest only note that now needs to be refinanced because you can't afford to pay any principal or you've lost your job or you took a 40% hit in the market or... and you are now way, way under water, 200, 750 or even 1000 home sales at rapidly decreasing prices would make you feel really, really bad.

Terrible term to use when dealing in real estate, but here goes ................................... Dollar Cost Averaging.

Terrible term to use when dealing in real estate, but here goes ................................... Dollar Cost Averaging.

???

...geez, bet no one saw that one coming.

.

???

...geez, bet no one saw that one coming.

.

Hey, I'm not a realtor. I don't make a dime when someone buys.

Hey, I'm not a realtor. I don't make a dime when someone buys.

wt-huh?...I'm still trying to figure out where the term or practice of 'Dollar Cost Averaging' fits in with any of this discussion

wt-huh?...I'm still trying to figure out where the term or practice of 'Dollar Cost Averaging' fits in with any of this discussion

O.K., I'll tee one up for you..... If someone overpaid for property, but decided to stick with real estate as part of their overall investment strategy, what would you call their continued course of purchasing additional real estate?

O.K., I'll tee one up for you..... If someone overpaid for property, but decided to stick with real estate as part of their overall investment strategy, what would you call their continued course of purchasing additional real estate?

.:scratch:..ah...Stupid?

.

O.K., I'll tee one up for you..... If someone overpaid for property, but decided to stick with real estate as part of their overall investment strategy, what would you call their continued course of purchasing additional real estate?

Dollar cost averaging?

Dollar cost averaging?

Some people might call it that.

Your statement about Watersound Beach { I wouldn't take the risk if you gave me the land! } is amazing to me considering we can both see the property from our respective lots. I still think Watersound Beach is worth tons.

Dollar cost averaging?

"The function of economic forecasting is to make astrology look respectable." --John K Galbraith, Economist and Author