Misc 30A Real Estate Prices

Discussion in 'Real Estate' started by Ohio Girl, Apr 23, 2016.

  1. Ohio Girl

    Ohio Girl Beach Lover

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    I would be curious to hear from realtors what they think of the current pricing of homes along 30A. I understand paying a premium for gulf front property but it seems that the prices of other homes on the market are a bit inflated. (I'm not complaining since we own a house). Just wondering if the prices are reasonable or if buyers are balking at the higher prices. Thanks.
     
  2. walt-prop

    walt-prop Beach Crab

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    yes-I believe your observation is correct. A friend from Atlanta was visiting during spring break and rented a home in Watercolor for $4,000 for the week (also inflated). They looked at a few homes and felt we are overpriced. I also have a new home for sale in Seagrove and buyers seem scarce currently. With that said, some pockets I hear are doing well.
     
  3. James Bentwood

    James Bentwood Beach Fanatic

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    Construction is booming and homes are selling. Prices will continue to rise as the area becomes more and more exclusive. It feels a bit like early 2000s. But there will be growing pains here and there. Commercial boom is just starting.
     
  4. jodiFL

    jodiFL Beach Fanatic

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    From what I have heard they are just getting back to"normal" for this area since the oil spill. Don't see them going down anytime soon.
     
  5. BeachArkie

    BeachArkie Beach Lover

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    Prices are high because demand is high due to low inventory. Definitely overpriced, the bubble is back!
     
  6. steel1man

    steel1man Beach Fanatic

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    Bubble burst was mainly caused by bankers making loans to unqualified buyers.pretty sure most $800K+ buyers will pass the smell check at the bank.
     
  7. BeachRob

    BeachRob Beach Lover

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    I work a lot of WaterColor (30A's most popular community by sales), Rosemary Beach, Grayton, Seacrest Beach, etc. What I am observing is this...

    Sales are strong.

    -WaterColor, for example, is on track to sell even more houses this year than last year. Meanwhile, homes on the market in the community are about 70% of what its needed for healthy inventory. And, leading up to this year, there had been a fair amount of shadow inventory that we no longer have... (Builder product: where you could walk into a model home and buy a house that wasn't on the MLS because it had yet to be built.) Not having the shadow inventory further strains supply.

    -Inventory is also very tight in Rosemary Beach, where I hear the principal complaint is that "There's nothing to buy" rather than "prices are too high."

    The underlying value of the real estate along 30A is there.

    -Recently, I ran some models to calculate the utility of a vacation home here to the buyer. Essentially, "Is it worth it to buy here at these prices?" And the answer is "yes!" The bargain days are gone. But, return on investment -especially when things like owner stays are accounted for- is at a healthy level. Thankfully, we are not to a point where you would have to factor in "pride of ownership" or "speculation of continued increases in prices" to get to this conclusion. I think we are getting closer to that level. But, we haven't seen runaway pricing on the bulk of inventory.

    We have seen some properties- particularly newly built and nicely decorated homes- sell, maybe, for more than they should.

    By contrast, homes which were built and decorated over 8 years ago are staying on the market longer. Basically, it's really hard to sell a house when its full of furniture from Tuskers. Buyers don't like brown furniture or tropical design. They don't like dark granite or galley kitchens. So, many of these homes will find their buyers after the newly-built or renovated homes have sold. Sometimes, unless a seller elects to redecorate, these houses have to sell at a reasonable discount to get the buyer.

    What I don't see, to answer the OP, is an opportunity for a massive correction. Where this market has stumbled in the past has been when, statistically speaking, we have experienced third standard of deviation events. When do you expect there to be back-to-back hurricanes? How often should you plan for the worst oil spill ever in the Gulf of Mexico? How many times in our lives will we experience an economic downturn so bad that it is referred to as a proper noun with a capital letter? I would hope to think the worst is behind us in terms of threats to market value here.

    Where I do see opportunity for correction is when interest rates rise. But, what I anticipate- rather than prices dropping- is a tailing off of volume sold. That's because this crop of buyers, since 2010, have been really strong financially speaking. I have yet to work a buyer in this cycle that will NEED to sell for less than he paid for a home. That's just not going to happen. LTV on these mortgages is nowhere near what it was in 2008.

    This market is in good shape.

    If anyone reading is interested in selling their home, you can DM me. I have an article in the next issue of Thirty-A Review detailing how to prepare you home for listing. Should be a good read.

    :) R
     
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  8. James Bentwood

    James Bentwood Beach Fanatic

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  9. Garner

    Garner Beach Fanatic

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    Very good and informative post Rob!
     
  10. Vita canizaro

    Vita canizaro Beach Lover

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    Where is your house for sale
     
  11. pmd8

    pmd8 Beach Lover

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    "....Inventory is also very tight in Rosemary Beach, where I hear the principal complaint is that "There's nothing to buy" rather than "prices are too high."

    There are 58 listings in Rosemary Beach and 57 sales in the past 12 months.

    12 months inventory would seem to be a buyer's market.
     
  12. BeachRob

    BeachRob Beach Lover

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    I've seen an article on SoWal somewhere putting the "line in the sand" at 7 months. That may be the case when you take into account all of 30A or all of 30A + Pt Washington, etc.

    For the communities that have HOAs, strong rental interest, and amenities, we chew through that kind of inventory too quickly. We need a good 12 months worth, especially going into late May and June.

    If you think this is a buyers market, I encourage you to go around lowballing sellers... see what they say.
     
  13. pmd8

    pmd8 Beach Lover

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    That makes sense. Especially when most of these are second homes and people don't have to sell.

    I've noticed a couple of large lots that haven't sold in Inlet Beach. They are not in HOA's, however. I'm one of the few that prefers no HOA, I suppose.

    Do you feel MLS #741246 and 741247 are over-priced?
     
  14. BeachRob

    BeachRob Beach Lover

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    I mean. What I see there is the opportunity to develop the property into like 4 separate parcels, gaining ingress and egress through the duplex compound to its west. If you can't do that, then I wouldn't look at it too seriously.

    I wouldn't buy one without the other.

    1.5M for the 2? Would you pay 1.75m for a house built on 1/4 of the combination of the two parcels? That's the price where it's attractive to a developer.

    You can always DM me if you'd like to go over plats and review comps.
     

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