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March 2010 Real Estate Sales Summary for South Walton, Florida

Em avatar
EmBeach Fanatic
4,029 views1
March 2010 Real Estate Sales Summary ? South Walton, FL

(link to full article)

by murray balkcom, GRI, Realtor
www.dreamBIGproperties.com


South Walton, FL - Spring has arrived in South Walton, and the increase in visitors to the ?World?s Most Beautiful Beaches? also brings an increase in real estate closings in South Walton. Buyers have been busy, and some sellers are beginning to see the light. Buyers are finding the right price points and are quick to write contracts when the price is right. Today?s buyers are extremely knowledgable in regards to knowing value because most buyers have been researching the market for more than one year.


In March, the Emerald Coast Association of Realtors (ECAR) reports strong sales numbers for homes, condos, and townhomes. In that combined category in all of South Walton, 154 closed sales were reported, totaling almost $75 million, with the median sold price reported at $325,250. Compare that to Feb 2010 sales of 82 reported sales totaling $31.3 million and you will notice the dollar volume increased 140% while the quantity of sales increased 88%. To get a quick look, see the charts below. When you look at the six-month moving average lines on each chart, notice the leveling of that line.


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Comparing Mar 2010 sales numbers to Mar 2009, we still see a substantial increase in quantity of sales, total dollar sales volume, and median sold price. Mar 2009 ECAR reports for homes, condos, and town homes in South Walton indicate 103 sales at $45.6 million, with the median sold price of $270,000. That comparison shows Mar 2010 sales volume being a 65% increase over Mar 2009, and the quantity of sales increased 50% over Mar 2009. One additional note is that the number of listings decreased 22% since Mar 2009. We continue to see a decrease in the number of listings each month since the peak of the market.


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When I create a large chart, dating back to 2000, we begin to see a trend each year. March typically brings a strong increase in sales compared to our winter months. Something else which also seems to remain true each year is a continuence of strong sales from March through June/July each year. We have to wait and see if that holds true for 2010 because the future is unknown.


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All sales data referenced above is provided by Emerald Coast Association of Realtors and is thought to be accurate but not guaranteed.


Murray Balkcom is a licensed Realtor with The Premier Property Group, serving South Walton, including Alys Beach, Rosemary Beach, Seacrest Beach, WaterSound, Seagrove, Seaside, WaterColor, Grayton, Blue Mountain Beach, Santa Rosa Beach, Dune Allen, and Point Washington.

Replies

19
Kurt avatar
KurtAdmin
#2
Good stuff Murray thank you. Do y'all think we are "bouncing along the bottom"?
Em avatar
EmBeach FanaticAuthor
#3
It certainly appears and feels like we may be dragging the bottom, but there are some unknown factors out there. Interest rates, insurance, lending policies, end of Bush tax cuts, unemployment (affects people's spending, which affects business owners' income), etc.

We have been seeing some stability in median selling prices as REO (bank owned) and short sales lead the market. I think we will continue to see more of these in the short term. Typically, the banks have to sell the properties, so they are priced at a level that draws buyers quickly. The good deals go fast. They are setting the market right now, and there does appear to be a bottom, but bottoms are not seen until after a lift from the bottom, and we are not there yet. However, we are seeing an increase in the quantity of sales, along with continued decreases in inventory. Median sold price still has a slight trend downward, but we actually had a sharp turn in March. If the past holds true for this year, we should see a busy April, May, and June, with more sales. Only time will tell. Just because it happened the last nine years, doesn't mean that it will this year, but I'll monitor sales and report my findings.
30ashopper avatar
30ashopperSoWal Insider
#4
Existing-Home Sales Rise on Home Buyer Tax Credit and Favorable Market Conditions

Buyers responding to the homebuyer tax credit and favorable affordability conditions boosted existing-home sales in March, marking the beginning of an expected spring surge, according to the National Association of Realtors?.

Federal Housing Tax Credit: Home

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence.

The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.

I forgot about this, this month should be gang busters for the local market. Get those free green backs while they last!

Edited

Tom Curlin avatar
Tom CurlinBeach Comber
#5
Are these metrics available yet for April 2010?
Em avatar
EmBeach FanaticAuthor
#6
Yes, but soon I will add results for May, which will include April, too. April was down slightly, overall, compared to March. You can go to www.dreambigproperties to read a little bit about April sales, and I also posted something in my blog here on SoWal.com.
30ashopper avatar
30ashopperSoWal Insider
#7
Does the mls track underwriters, particularly the FHA? It would be interesting to see what percentage of new loans down here are being underwritten by the federal government.
Em avatar
EmBeach FanaticAuthor
#8
No, that information isn't tracked by Emerald Coast Association of Realtors.
Lynnie avatar
LynnieSoWal Insider
#9
Prior to the meltdown, FHA underwrote about 25% of mortgages. By 4thQ, 2008, the agency was underwriting about 75%. My guess is they are still closer to the 70-75% range, particularly with 203b rehab loans since some who are foreclosed vandalize and strip the home of everything including duct work prior to vacating.
30ashopper avatar
30ashopperSoWal Insider
#10
Prior to the meltdown, FHA underwrote about 25% of mortgages. By 4thQ, 2008, the agency was underwriting about 75%. My guess is they are still closer to the 70-75% range, particularly with 203b rehab loans since some who are foreclosed vandalize and strip the home of everything including duct work prior to vacating.

The last figure I read indicated it was around 95%!
Lynnie avatar
LynnieSoWal Insider
#11
The last figure I read indicated it was around 95%!

:blink: This is why FHA will implode. I didn't think it was that high, but anything is possible. In their defense, FHA has gradually tightened up their guidelines, but you can still qualify with less than six mos. reserves and a subpar credit score. With unemployment/underemployment as high as it is, reserves should cover a longer period.

They lived, but haven't learned?
Tom Curlin avatar
Tom CurlinBeach Comber
#12
The vast majority of conventional mortgages are underwritten by Fannie and Freddie, both of which are owned by the US government for the forseeable future. So I believe you could simply look at that percentage of conventional versus jumbo loans as a very close proxy for the percent that is underwritten by the US government.
Tom Curlin avatar
Tom CurlinBeach Comber
#13
Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.
Ari Silverstein avatar
Ari SilversteinBeach Lover
#14
It certainly appears and feels like we may be dragging the bottom, but there are some unknown factors out there. Interest rates, insurance, lending policies, end of Bush tax cuts, unemployment (affects people's spending, which affects business owners' income), etc.

None of which are the least bit comparable to the impending devastation of SoWal real estate values as the oil spill moves from catastrophic to ecologically irreversible.

Let's review the numbers for June, July, August, the prime buying months...after the oil hits the beaches here.
Ari Silverstein avatar
Ari SilversteinBeach Lover
#15
:blink: This is why FHA will implode. I didn't think it was that high, but anything is possible. In their defense, FHA has gradually tightened up their guidelines, but you can still qualify with less than six mos. reserves and a subpar credit score. With unemployment/underemployment as high as it is, reserves should cover a longer period.

They lived, but haven't learned?

They are not their own masters. As long as the FedGov pursues a policy of attempting to create "home ownership" for those who have no business owning a home, expect to see more of the same.

Edited

Ari Silverstein avatar
Ari SilversteinBeach Lover
#16
The vast majority of conventional mortgages are underwritten by Fannie and Freddie, both of which are owned by the US government for the forseeable future. So I believe you could simply look at that percentage of conventional versus jumbo loans as a very close proxy for the percent that is underwritten by the US government.
Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.

+several
Lynnie avatar
LynnieSoWal Insider
#17
Actually technically the term "underwritten" should be "guaranteed", as the underwriter may not be the federal government in name, but they are guaranteed that Fannie or Freddie will buy the loan if necessary, which is practically the same thing.

Yeah, you're right....FHA is guaranteed and now we know that Fannie/Freddie are backed by the full faith and credit of the United States Taxpayer. :blink:
Bob avatar
BobSoWal Insider
#18
without fha, the market would be nil
30ashopper avatar
30ashopperSoWal Insider
#19
without fha, the market would be nil

Interesting observation.. If the federal governmnt didn't co-sign for everyone, nobody would be able to get a loan. This country is so fubar'd! :lol:
Tom Curlin avatar
Tom CurlinBeach Comber
#20
Actually credit worthy borrowers would be able to get a loan but would have to pay a higher rate to do so. Practically every conforming loan in the country is subsidized by the federal government right now, and that includes refi's. And the feds through Fannie and Freddie own at least half of all home mortages, so Uncle Sam is now the largest landlord in the country. And he will be for a long time, because house prices and transaction volumes are about to enter a double dip phase following the expiration of the home buyer tax credit. This is clear from the new purchase mortgage applications metrics over the last four weeks.

http://calculatedriskimages.blogspot.com/2010/06/mba-purchase-index-june-2-2010.html

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