Residential Lot Sales up 132%

[Em]

Santa Rosa Beach, FL - Residential lot sales are hot in South Walton! In April 2011, Realtors reported 79 residential lot sales according to ECAR, up 20% over March sales. Comparing April 2011 sales to April of the previous year, we see an HUGE increase of 132%! I’m sure that most people will think that the lot sales are up so sharply due to decreases in selling prices, but that is not true. In reality, we find the median sold price up 1.5% in April 2011 ($104,000), compared to April 2010 ($102,500). Average sales price for April 2011 was $213,611, up 42% over April 2010 ($150,139).

Combine higher sales prices with increases in the number of sales and it is no surprise to see the monthly sold volume increasing.However, April 2011 resulted in such great sales volume ($16.9 million) that we have to go back to April 2006 to find the monthly sold volume this high for residential lots in South Walton.

Many would-be sellers have realized that they were so over-priced for this market and they have pulled their properties from the market. Combine that with a steady increase in the number of lot sales and we see the inventory steadily decreasing from our peak monthly inventory reached back in June 2006. Currently, our inventory has decreased by 54% from the peak inventory.

For a long time, I’ve thought that residential lots and condominiums were under-valued in general. Inventories were high and prices were low, yet lot and condo sales greatly lagged behind home sales. Now, we are really beginning to see a turn with people buying lots and condominiums in South Walton.

Murray Balkcom is a licensed Realtor with The Premier Property Group, serving SoWal.



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

 

[homeboy]

Thanks again for the great info.

Were there any sales in 2011 versus the comparable period in 2010 that would skew any of your average sales price data (such as sales of premium beachfront properties this year versus last year or any bulk purchases in either year)?

 

[Em]

Homeboy,
That is a great question and the answer is yes. The average sales price will be skewed up or down depending on high-end or low-end sales. That is why I always give more value to "median" sales price, which is the price where half of the sales are below that number and half are above that number.

 

[blue chiffon]

Do you have June Condo sales yet and can you post your detailed realtor report that h

has the pending, sold data by area and price range data also. That is so helpful. Thanks,

 

[Em]

June has just started, so I won't have the June numbers until July. If you are talking about the May sales numbers, I usually wait about a week into the following month to run the numbers due to some Realtors being slow to get their sales posted. Stay tuned to SoWal.com for more updates.

 

[30A Skunkape]

Probably no way to figure it out other than searching records, but I wonder how many buyers are buying multiple lots. We spoke to two brothers from New Orleans who are buying up as much stuff as they can simply to speculate. They have no plans to do anything with them other than hold and sell one day.

 

[Bobby J]

Probably very wise brothers.

 

[Em]

Skunkape, there are many people who are buying multiple properties right now. Investors are heavily getting back into the real estate market. There are some great lots priced ridiculously low right now.

 

[Miss Kitty]

and...I heeeelped!;-)

 

[30A Skunkape]

Probably very wise brothers.

I'm not sure. The portfolio is not short on wetlands.