SoWal real estate update and stats

[SoWalSally]

As vacant land becomes harder to find in Destin, builders and developers continue to go to South Walton.

?With the high-rises and traffic, I don?t see how they can build much more in Destin,? said Harry Millsaps, president of ECAR?s South Walton chapter and an agent with Coastal Properties of Northwest Florida Inc.

Millsaps said he?s surprised there has not been more development along Destin?s harbor, such as Peter Bos? development of HarborWalk Village, but he said he is concerned about the traffic new developments will generate in Destin.

He said South Walton has a 50-foot height limit on buildings, allowing for only three or four stories of development.

This drives up the prices for each unit, he said.

?It (South Walton) has got to be one of the hottest real estate markets in the country,? he said.

Lots that sold for $150,000 a few years ago are now going for $600,000 to $700,000, Millsaps said.

He said many properties are selling for $2 million and the vast majority of the million-dollar real estate purchases are cash deals with no financing involved.

The most ?affordable? housing in Walton County starts at about $350,000, he said.

Resales are dominating the Destin market and new development is moving to South Walton, said Ben Anderson, president of Emerald Coast Association of Realtors.

There are about 32 new developments between Sandestin and east to Bay County, with about seven more along County Road 30-A, not including those still in the planning stage, Millsaps said.

They include Water-Sound, Alys Beach, Adagio, South Walton Commerce Park, Naturewalk and Grayton Grand.

Millsaps said some of these are major developments.

In spite of the magnitude of development in Walton County, Millsaps said there doesn?t seem to be any shortage of buyers.

OKALOOSA

Single-family homes:

?Average sale price: $614,000.

?Median sale price: $450,000.

?Average listing price: $646,000.

?Average sale price was 95 percent of average listing price.

Condominium residences:

?Average sale price: $445,000.

?Median sale price: $358,000.

?Average listing price: $458,000.

?Average sale price was 97 percent of average listing price.

Residential land:

?Average sale price: $316,000.

?Median sale price: $200,000.

?Average listing price: $330,000.

?Average sale price was 96 percent of average listing price.

WALTON

Single-family homes:

?Average sale price: $845,000.

?Median sale price: $595,000.

?Average listing price: $873,000.

?Average sale price was 97 percent of average listing price.

Condominium residences:

?Average sale price: $690,000.

?Median sale price: $575,000.

?Average listing price: $718,000.

?Average sale price was 96 percent of average listing price.

Residential land:

?Average sale price: $544,000.

?Median sale price: $420,000.

?Average listing price: $561,000.

?Average sale price was 97 percent of average listing price.

Source: Emerald Coast Association of Realtors.

 

[SoWalSally]

Home sales up 7 percent statewide this quarter.

Sales of single-family existing homes in Florida continued to climb during the first three months of this year, while heavy demand pushed up the statewide median sales price. Statewide, resales activity increased 7 percent in the first quarter of 2005, according to the Florida Association of Realtors. Overall, a total of 57,699 homes changed hands during January, February and March, compared to 53,971 homes sold a year ago.

Following a three-month trend, the statewide median sales price once again topped $200,000, rising 27 percent to $207,000 in the first quarter; a year ago, it was $163,600. In 2000, the first-quarter statewide median sales price was $109,600, which is an increase of about 88.9 percent over the five-year period.

The latest economic outlook from the National Association of Realtors notes that mortgage interest rates have been ticking up less than expected, a pattern predicted to continue through next year and to support strong levels of home sales. Higher oil prices are having a dampening effect on economic growth, according to NAR analysts, who also forecast that the 30-year fixed-rate mortgage will rise gradually to 6.4 percent in the fourth quarter of 2005.

Realtors across the Sunshine State report that low mortgage rates continued to attract buyers in the first quarter, boosting resales numbers for the three-month period. According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed-rate mortgage was 5.76 percent in first quarter 2005; last year, it was 5.60 percent.

Among the state?s larger markets, the Fort Myers-Cape Coral metropolitan statistical area reported a dramatic 33 percent gain in home sales for the quarter with 3,024 homes sold compared to 2,272 homes sold a year ago. The market?s median sales price increased 37 percent to $236,000; a year ago, it was $171,800.

Other larger Florida markets reporting a boost in resales activity for the quarter compared to first quarter 2004 include: Tampa-St. Petersburg-Clearwater, where 11,740 homes changed hands for a 16 percent increase; and Jacksonville, where 3,870 homes sold for a 13 percent gain. The median home price also rose in those markets over the same period: in Tampa-St. Petersburg-Clearwater, 23 percent to $176,400; and in Jacksonville, 22 percent to $173,400.

Among the state?s small to medium-size markets, the Pensacola MSA posted a 26 percent increase in resales for the quarter, with 1,477 homes changing hands compared to 1,173 homes sold a year ago. Over the same period, the market?s median home price rose 18 percent to $143,800; a year ago, it was $121,500.

Other smaller markets reporting strong gains in existing-home sales in the first quarter of 2005 include: Gainesville, where 840 homes sold for a 38 percent jump; and Fort Walton Beach, where 1,218 homes sold for a 19 percent increase. The median sales price also rose in those markets: in Fort Walton Beach, 29 percent to $220,300; and in Gainesville, 8 percent to $160,000.

 

[Buckhead Rick]

First, my disclaimer, I know nothing about real estate.
Second, my thoughts are worth the cost of cyber space (nothing)
But, being one of the first baby boomers (born 1946) I find it hard to believe that the second home/vacation home market has maxed out before I hit 60, since there are 76 million baby boomers behind me, most of whom have not even thought of when they will retire, much less where.
Prices may be ahead of themselves but time will make good, blue chip investments good again. As far as investing in industrial areas along the coast i.e. Texas, that's like buying stock in a dot com today instead of GE because its cheaper. Put your money where people want to be now, not where they MAY want to be latter.
I am now off my soap box. Thanks

 

[Waterman]

Thank you Sally, very informative! :clap_1:

 

[Smiling JOe]

First, my disclaimer, I know nothing about real estate.
Second, my thoughts are worth the cost of cyber space (nothing)
But, being one of the first baby boomers (born 1946) I find it hard to believe that the second home/vacation home market has maxed out before I hit 60, since there are 76 million baby boomers behind me, most of whom have not even thought of when they will retire, much less where.
Prices may be ahead of themselves but time will make good, blue chip investments good again. As far as investing in industrial areas along the coast i.e. Texas, that's like buying stock in a dot com today instead of GE because its cheaper. Put your money where people want to be now, not where they MAY want to be latter.
I am now off my soap box. Thanks

"Yeah, but if you buy a penny stock it can go up a lot."
-- Great post Buckhead Rick! I think you add great insight with this post. I am curious to know how many of the 76 million boomers will want one of the 12,000+ condos along the Gulf in PCB. Sounds like they could use a few more very quickly.

 

[Today]

I guess people shouldn't have bought waterfront property 20 years ago in
Walton County if they should only have been buying blue chip type properties. A good small or midcap stock, while having more risk than GE, has the potential to increase in value a lot more.

 

[Kurt]

I'd say just about any waterfront is blue chip. Some more than others.

 

[Carter]

Here, here Kurt. Look at a map of all the sandy beaches from the bottom tip of FL around to bottom tip of TX, and you will find relatively ltd supply. Even at today's apparently lofty prices, it is hard to imagine an investment in beautiful sowal beachfront would not be a winner in the long run. There is only so much gulf, and sowal beaches are the 'best of breed' from my perspective.

There is no debating the blue chip nature of SoWal/destin beach properties, but, to carry the stock analogy a bit further, GE was at about 60 roughly 5 years ago; it has been mostly in the 20's and 30's since (37 or so today). For people who purchased in 2000, it was considered the safer blue chip bet vs the dot-com high-flyers at that time. I owned a sizeable chink of GE at 60 (and before fortunately) and still own it now. It can be a long painful journey from the low 20's back to 60 and beyond (which I am confident this blue chip will do), but it is long term 'retirement' investment for me and at least with GE I get a dividend while I wait.

 

[Bob]

The only thing about real estate that concerns me now, is that short-attention-span boomers actually love to compare national/liquid stocks to local/illiquid real estate. What was I saying????

 

[RiverOtter]

The only thing about real estate that concerns me now, is that short-attention-span boomers actually love to compare national/liquid stocks to local/illiquid real estate. What was I saying????

Huh Bout what?