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Sales on 30A for July/Aug 2005

Discussion in 'Real Estate' started by patticakes, Aug 27, 2005.

  1. patticakes

    patticakes Beach Lover

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    Does anyone have any data on what home sales were like for July and August? How many properties went under contract during this period. Is anyone buying anything? It's clear that the flippers have stopped flipping... but what about the other buyers - 2nd homes, vacation homes, etc. -- has everyone stopped buying because of media hype?
     
  2. Miss Kitty

    Miss Kitty Meow

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    Yoo Hoo...where are you....skier?
     
  3. Bob

    Bob SoWal Insider

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    Off the top of my head figures look scary...just in Blue Mt. Bch , 45 lots for sale Forest Lakes, 25 highland park, 38 Grayton Preserve etc. it's almost like everyone is walking briskly toward the exit door, yet trying not to look like they are in a hurry. A very unscientific opinion. wish someone had fresh figures.
     
  4. CJ

    CJ Beach Lover

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    Since June 1 2005 in Walton County South of the Bay
    50 houses
    29 town houses
    205 condos
    271 lots

    Have sold. That does not include sales pending. For example there are 103 lots pending in August that have not had time to close.
     
  5. patticakes

    patticakes Beach Lover

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    Thanks for info CJ. Do you have any figures for same time period last year. Just wondering how large of an impact flippers pulling out of the market has made. Other factors influence these #'s as well though such as hurricanes...
     
  6. Tenn.Guy

    Tenn.Guy Beach Comber

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    Can you tell how many of these actually went under contract during June and July versus closings on properties that were under contract during a construction period? I know a lot of condos closed during that time frame but many, like the compass point condos in Watersound, went under contract long ago. Same for many of the homes that closed in places like Watercolor, etc. Also, how many lots were resales versus developer release lots?
     
  7. kew65

    kew65 Beach Crab

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    Have sales slowed down since we have had back to back to back hurricanes?
     
  8. Robert

    Robert Beach Comber

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    I'm sure. The storms came early this year which also slowed the summer activity. The beach is the beach. What I mean is that there have always been storms and there will be storms in the future. The SoWal area is a special place and people will always want to be there. That is the good news. I think it will pick back up.

    A good search site to go to is: http://www.waltonpa.com/
     
    Last edited by a moderator: Sep 1, 2005
  9. kew65

    kew65 Beach Crab

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    I'm sure the market will pick back up. I hope to find a home in SoWal this dec or jan. I share your view on the storms and they will not keep me from living in Walton. Thanks for the link!
     
    Last edited by a moderator: Sep 1, 2005
  10. ecopal

    ecopal Beach Fanatic

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    This is definately a better time to be a buyer than a seller. Buyers have more choice than ever before and can cherry pick quality properties at a good price. Less chosey buyers in this situation could "bottom feed'-put low offers on any lots they wanted until they got a "bite".

    I would think that most of the 30A property owners who are lowering their prices are the "flippers" who are caught with build out deadlines and overextended credit. Once those sellers are weeded out the market will probably stabilize but until then prices maybe headed down some more.
    A buyer can be patient in this environment but must be wary - if sales start to increase sellers will be happy to raise their prices quickly.

    Essentially prices will drop until prices hit a level that brings in more buyers that would reduce the inventory of lots and homes. There is also a level at which some sellers will just pull their properties off the market if they do not need to sell now-that could be a wise decision in the long run.

    I feel that 30A is a good investment because it is so unique and has the highest coastal elevations on the coast south of Maine. Frankly after seeing the devastation in Miss. and New Orleans I would not live on the coast unless I was at least 20 to 30 ft. above sea level.

    I would not want to be a buyer or seller in low lying areas especially many areas of Panama City Beach, near the Choctawhatchee bay, and Destin . If a property required flood insurance I would run the other way.

    I believe that it is best to sell high and buy low but it is hard to predict what is "high and low". It is also best to buy high elevation and sell low elevation. On 30A the odds are in the buyer's favor.If we do not have any more market disruptions this fall, such as another hurricane, prices may hit that stable level and start back up on 30A.

    It is hard to say at this time how much the evacuees from New Orleans
    ( who are undoubtedly seeking higher ground) may impact our market but it can only help. I hope at least some chose to stay here if just for the reason that we would be enriched by a little of New Orlean's spirit and diversity .
     
  11. Robert

    Robert Beach Comber

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    I think you are right; it is a buyer's market. Things got soft in march and now I believe the buyers are in the drivers seat.
     
  12. Coast is Clear

    Coast is Clear Beach Lover

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    While the prices at Seaside have had a small trend down over the last few months the web site is down to 33 listings (from a high of about 40) including some condo/apt. and 2 lots. It looks like about 3 homes have come off the listing recently and one lot that was listed at $1.15mm.

    Does anyone know if these are frustrated sellers giving up, or sales?? :idontno:
     
  13. Seasider

    Seasider Beach Lover

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    I counted 17 closings in Seaside through July. There were two more houses pending to close in August. All have been over $1mm. Most were substantially more. Seaside has the good fortune to be above the flood zone and behind the dunes.
     
  14. skier

    skier Beach Lover

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    I counted 39 closings for the same period in 2004.
     
  15. Robert

    Robert Beach Comber

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    You know, the sun comes out when you are around skier. You have such a positive personality and great outlook for the future.
     
  16. kurt

    kurt Admin Staff Member

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    Yes but remember many of those would have gone under contract much earlier and taken awhile to close. :floor:
     
  17. Cavallino

    Cavallino Beach Comber

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    At least Skier made is 9 whole days without posting a "Real Estate Doom & Gloom Message".... :floor:

    I do recall his statements he would only lurk...but I guess he couldn't help it anymore....the delirium tremors <shakes> must have been too much to take...

    Does anyone remember the song from HeeHaw "Doom...Despair...and agony on me" ? :floor:


    Doug
     
  18. skier

    skier Beach Lover

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    Hey Doug,

    Yeah I couldn't resist trying to bring balance to the posts that seem to ignore the current state of the market. It's not doom and gloom. IT'S FACTS and simple reality. Are you and others that don't seem to like my posts opposed to discussing facts and reality???

    Prices continue to drop. Recent sales in the big communities along 30A have been at prices well below the "market" just 6 months ago. A lot in Watercolor just got dropped to $450k and there are numerous lots under $600k. In Watersound, people continue to drop prices--several lot are below $700k again next to or near lots that sold for $800k or $900k within the last year. It appears (based on some other posts that I cannot confirm) that for the first time in years, the recent developer releases in Watercolor and Watersound did not sell out with 50 or 100 buyers waiting on the lottery list. The folks in ALys are calling potential buyers almost begging them to buy.

    You might want to live in la la land. But, for people that are invested in the market and wanting to knowing what is really happening, I'll post info that gives actual data in the current market. Some might even find good buys in the info I post. These people that are looking for info don't need to hear people talking about returns of 5, 10, 15, 20, 30, 40 percent that simply aren't there anymore. In fact, most folks that bought recently are now under water with their investments (if they had to sell today, they would lose money period, end of story, due to the excess inventory in the market). Some people actually want facts, not hype.

    So, keep on hyping and I'll keep on throwing facts back at you to balance the equation. If the hyping stops, I'll stop throwing facts out that blow the bubble on the hype. Or, hopefully, the market will turn around and my statements of fact might even be pleasing to you. I don't want to see people lose money. I don't want to lose money. But, the market is what it is and nothing I say or that you say can change that.

    Back to lurking.
     
    Last edited: Sep 10, 2005
  19. RiverOtter

    RiverOtter got any pics?

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    Yes the asking prices are reduced... But are these people taking a loss? Or less of a gain?


    Is this like the government saying "spending cuts" which realy means "reduction in the increse of spending"?
     
  20. skier

    skier Beach Lover

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    Without researching each sale on the Walton County website, my gut tells me that these folks are not losing money. They are getting out before they lose money.

    However, what about the guy or gal or builder (person A) that bought a resale lot for $900k last summer. Then, due to the decreasing prices, the guys next door and down the street that had a basis of $300k in the lots sell theirs to someone else (person B) for $650k this summer (this is happening in Watersound). And, Builder C bought his similar lot for $300k in the initial developer offering. A, B and C all build $700k homes on their lots and all decide to sell. A has a basis of $1.6 million, B has a basis of $1.35 mill and C has a basis of $1 million. If all need to or want to sell and the market is soft (as is happening right now in Watercolor --I can give many, many examples of this), C can continue to lower his price and so can B, but A is out of luck. If A or B are simply investors that need cash, uh oh, look out because C is a builder that must get out and he can continue to drop the price well below A's adn B's basis. Again, this is happening right now in Watercolor.

    There are many folks with staying power that will not be forced to sell. But, there will be others with low basis that will sell at low prices establishing a new lower market than we had 6 months ago. Again, its happening right now in Watercolor, Watersound (not as familiar with Rosemary). Buyers will expect these lower prices, especially with so much current inventory and sellers continually lowering prices. THe inventory will continue to increase with so many spec homes being built in Cypress Dunes, Watercolor, Cypress Breeze, Watersound, ALys, etc., etc. There is way, way too much inventory. If inventory levels were reasonable, prices would probably be stable. But, that is not the case.

    Its a buyers market--wish I had sold 6 to 10 months ago when it was still a sellers market. Oh well--hindsight is 20/20.

    By the way, I really, really hope that this is short lived and the market turns SOON. Then, all of you can say I told you so and I can sell my house at a fabulous profit.
     
    Last edited: Sep 10, 2005

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