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January Real Trend Report in Walton Sun

fisherBeach Fanatic
11,221 views
The real trend report for January for all of Walton County showed the following data--

Home sales--units down 20% to 111, total dollar volume down 38% to $48.5 million, and average price down about 20% to $437k.

Lot sales--units down 50% to 193, total dollar volume down 64% to $19.8 million and average price down 28% to $102k.

Condo sales--units up 184% to 136, total dollar volume up 308% to $116.8 million and average price up 44% to $850k.

Home sales and lot sales continue to move ever lower in the county in spite of the increase in activity discussed by several realtors on the board.

The condo sales look interesting and I would be interested to hear from some realtors as to what happened in January. Were there a large number of closings on condos sold preconstruction during the boom? Or, is this a true uptick in condo activity?

Replies

67
Bobby J avatar
Bobby JBeach Fanatic
#52
One doesn't have to surf to understand surfing. ;-)

Well put! Here is another.

Try to remain calm when you are down.
jimmyp5 avatar
jimmyp5Beach Lover
#53
...........A buyer's market is when prices reach levels where it is attractive for buyer's to buy. I am seeing some properties in this category right now, but the truth is that the overpriced properties outweigh the value buys right now. That doesn't mean that you cannot shop for a value right now, but it does show me that inventory of listings is not an accurate indicator of the market. When there are two identical lots side by side with a price fluctation greater than 40%, at least one of those two lots isn't really for sale. ;-) ............

Joe, I agree with what you're saying here. A lot of this truth stems from the old adage about a property being worth what someone will pay .... that's always been a deceptively simple statement, but not simplistic as some would believe.

You and I both get e-flyers every day about supposed values that're priced "way below market" or "$200,000 below market" .... well, apparently they're not below market, or they'd already be sold.

Similarly, someone here posted about the rich folks paying too much for a few certain high-end homes lately ... those homes were apparently worth it to them, and yet the devil of it is that them paying $1000 per sq ft does not then automatically make the other homes in the neighborhood worth similar amounts to other prospective buyers.

Analyzing a market is imprecise, and market trends can only be imperfectly described with generalities and a side order of disclaimers .... but I do enjoy it.
fisherBeach FanaticAuthor
#54
I think Feb 2007 will be the same as Feb 2007. Exactly, dead even!😀

Oops--:blink: fingers got a bit tied up I guess.

You are dead on--07 will be even steven with 07. :lol: BUT, 07 will likely be below 06 if recent trends continue.
Babyblue avatar
BabyblueBeach Fanatic
#55
Re: I've grow tired of the real estate rhetoric...

I wouldn't argue that the daytraders didn't play a significant role. And I'm not smart enough to go research what % of the market their trades represented. I do know how many of my Physician clients were getting calls from broker reps trying to get them to get on board however. It was a daily event. You can't argue that realtors and/or brokers cannot or do not influence bad trends. I'm not buying.

A good friend once said "Don't wait to buy realestate. Buy and wait." :!:
Smiling JOe avatar
Smiling JOeSoWal Expert
#56
It isn't timing the market, it is time in the market.


One other thing I disagree with in your statement is that you say it was a buyers market this time last year. I disagree. Prices were still much higher than any buyer was willing to pay.

I think those that bought at the peak of this cycle--say $850 or $950 per square foot for a home in areas where they are now going for $600 or less--will need to be in the market a long, long time (if ever) before they make any money and even then, the rate of return will be nominal.


Then why were more homes and lots sold in January 2006 than in January 2007?;-)

Actually, there wasn't much difference in the quantity of homes sold in Jan '06 vs Jan '07.

Looking at the sold property data, the Seller's Market ended in Dec '05, so the sales in Jan '06 are similar to Jan '07, because only recently, have prices begun to look interesting to sellers, which should soon show in sales. We are only 19 days into this short month and currently, there are 38 single family homes in the SoWal area from Bay Co. up to Sandestin, in the pending and contingent status. The last three months, there were 21 closed sales each month in this category and area. Not all of these will necessarily turn into closed sales for the month of Feb '07, but it does look like Feb or Mar will be much stronger than the past 13 months, as for the quanity of sales. Only 7 single family homes are listed as having closed during this month, but if these others go to close, that number should show an uptick in either Feb or Mar '07, to reflect what I and a few other Realtors have been talking about with the increase in activity. We are not just trying to pump up and misrepresent the current market conditions, no matter what some people are inclined to believe.

Edited

SHELLY avatar
SHELLYSoWal Insider
#57
Here's another bit of information to toss out to the market.

This time it is from a January 2007 article in the Florida Real Estate Journal entitled, "Panel: Gloom to Continue in Residential Markets."

It quotes the Great Northwest Florida's (AKA the panhandle) Founder and Favorite Son--none other than Peter Rummell, JOE CEO.
---------------------------------------------------
"The disconnect between home prices and falling demand has created ?schizophrenia? in Florida?s residential real estate market, said Peter Rummell, chairman and CEO of The St. Joe Company, the state?s largest private landholder and developer of planned communities.

?We?re in a real estate recession or depression,? said Rummell, adding that Florida is now paying the price for a market that went too far, too fast. 2007 will be a poor year for sales, he said, and an enormous wave of builder layoffs is coming.

Rummell said he expects repricing of 15% to 25% in some markets, and the pace of sales will return to 2001-2002 levels.

We can live nicely in a normal world,? he said."
--------------------------------------------------------
Babyblue avatar
BabyblueBeach Fanatic
#58
And your point?
Bob avatar
BobSoWal Insider
#59
Joe, I agree with what you're saying here. A lot of this truth stems from the old adage about a property being worth what someone will pay .... that's always been a deceptively simple statement, but not simplistic as some would believe.

You and I both get e-flyers every day about supposed values that're priced "way below market" or "$200,000 below market" .... well, apparently they're not below market, or they'd already be sold.

Similarly, someone here posted about the rich folks paying too much for a few certain high-end homes lately ... those homes were apparently worth it to them, and yet the devil of it is that them paying $1000 per sq ft does not then automatically make the other homes in the neighborhood worth similar amounts to other prospective buyers.

Analyzing a market is imprecise, and market trends can only be imperfectly described with generalities and a side order of disclaimers .... but I do enjoy it.
Anyone engaging in conspicuous consumption doesn't look to comparables. Rather, the buyer is actually likely to be proud of the sale price. Cars are another good tell for this behavior. Anyone so inclined will go out of their way to buy a certain Lexus model when everyone else is driving a comparable Toyota model. It is the perfect "I have what you cannot afford" attitude.
SHELLY avatar
SHELLYSoWal Insider
#60
And your point?

Rummell stayed at Holiday Inn Express last night too...I saw him snarffing up all the muffin tops at the free breakfast buffet this morning.


.
Bob avatar
BobSoWal Insider
#61
Fisher, I backed up and read your post. You're close. They're not price sensitive, just status sensitive....conspicuous consumption.
Bobby J avatar
Bobby JBeach Fanatic
#62
Josh,

You can't make your point without the insult? Where did I call you out personally? And while your at it, show me where I proclaimed myself as the all-wise one? That's a cheap shot.

Since I am so ignorant, why don't you impart the wisdom? I've driven by your personal home. It's nice and from the web shots, it is nicely furnished. Why hasn't it sold? Let me guess, it is due to real estate being down all over the country. I should have known. Could price have anything to do with it? Or maybe the abundant supply of houses for sale within 10 miles of your street? How does it feel to be stuck in the middle of a stagnant market?

I don't know when the bottom will come. And I'll make the best choice that I can personally and hope for the best. I just refuse to believe things aren't going to change in the next few months. There are too many signs (both literally and figuratively) that shouldn't be ignored.

I don't expect everybody to agree with me, nor did I ask for such in my posts. (I've got to learn how to post under the correct heading.)


Beach Dad,
What is your price range? The buy you are waiting for may be here. I know of some really good buys. I typically do not have time to list them before they are gone so I would love to try to get you one.
destinsmBeach Lover
#63
FAR January Existing Homes/Condos Data ... I do not know if any of these MSA's actually include SoWal, but there definately is no uptick in activity in the surrounding areas...

------

Florida Sales Report - January 2007
Single-Family, Existing Homes

Realtor Sales------------Median Sales Price

--------------- January -- January -- % -- January -- January -- %
-----MSA's------- 2007 --- 2006 --Chge -- 2007 ---- 2006 -- Chge

Fort Walton Beach .... 150 ... 184 ..... -18 .. $206,000 .. $220,000 .. -6
Panama City ........... 67 ... 123 ..... -46 .. $183,300 .. $226,700 ..-19
Pensacola .............. 279 ... 317 ..... -12 .. $159,200 .. $158,100 .. 1




Florida Sales Report - January 2007
Existing Condominiums


Realtor Sales------------Median Sales Price

--------------- January -- January -- % -- January -- January -- %
-----MSA's------- 2007 --- 2006 --Chge -- 2007 ---- 2006 -- Chge

Fort Walton Beach .. 44 ... 107 ..... -59 .. $440,000 .. $192,800 .. 128
Panama City ........... 29 ... 18 ..... 61 .. $293,800 .. $240,000 .. 22
Pensacola .............. 27 ... 43 ..... -37 .. $195,000 .. $172,500 .. 13


http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/02-27-2007/0004535588&EDATE=

Edited

mfBanned
#64
I just say, "Thank God we're not California!" $500,000 won't get you a treehouse 2 hours from the beach!

while that's true, let's be fair. it's not as though we have the job opportunities, economic potential, cultural offerings, health care or other infrastructure of california coastal towns.

while this area has it's charm, people buying beach houses in california are not just buying a home, but buying into a lifestyle. big difference.
Seagrove Lover avatar
Seagrove LoverBeach Lover
#65
I think prices are becoming reasonable.

I deal primarily in rentals and I am buying when I find a deal. If the rents support the purchase price within a reasonable yearly loss I am ready to have more property. I have a contract at One Seagrove Place that should close on March 15th. You never catch the real bottom unless you take some risks. In 30a area some prices are still too high, but many are becoming realistic.

Hope I am making the right move, but baring disaster hurricanes for the next 2 years I believe the proper reasonable sales are returning and in the long run 30a is where I will put my money.:blush:
OnMackBayou avatar
OnMackBayouBeach Lover
#66
while that's true, let's be fair. it's not as though we have the job opportunities, economic potential, cultural offerings, health care or other infrastructure of california coastal towns.

while this area has it's charm, people buying beach houses in california are not just buying a home, but buying into a lifestyle. big difference.

We thought about buying in California. We looked from the wine country to San Diego. It's really beautiful there. Santa Barbara-Wow! Ojai-It's like Shangri-La. San Francisco-Super! La Jolla-Something Else! Over the years we've spent lots of time there.

We really wanted to be near the beach, so we looked for the prettiest one. One that wasn't too cold to swim in without a wet suit. And we wanted a lifestyle with which we were comfortable, where we could raise a daughter and instill in her some good southern values. A place where the people seemed down to earth.

We looked and looked. We certainly didn't feel as though we could find what we were looking for in California. We can always go there to visit, I guess. Instead, we chose a place to live that is unlike any other. For the longest time it was hard for me to put my finger on why we liked it here so much more. Obviously, we have the beaches.

It finally hit me one day a couple of years ago: Everywhere you go here you see happy people. The people that live here are happy. The people that come here to visit are happy. Every time I meet an out-of-towner and they find out we live here, they're incredibly jealous. That validates the reason I have a smile on my face. Happy, happy, happy.

Happy isn't a lifestyle I guess. It's the result of it.
Smiling JOe avatar
Smiling JOeSoWal Expert
#67
destinsm, read my post #56 and it may answer your question comparing Jan 06 to Jan 07.
mfBanned
#68
We thought about buying in California. We looked from the wine country to San Diego. It's really beautiful there. Santa Barbara-Wow! Ojai-It's like Shangri-La. San Francisco-Super! La Jolla-Something Else! Over the years we've spent lots of time there.

We really wanted to be near the beach, so we looked for the prettiest one. One that wasn't too cold to swim in without a wet suit. And we wanted a lifestyle with which we were comfortable, where we could raise a daughter and instill in her some good southern values. A place where the people seemed down to earth.

We looked and looked. We certainly didn't feel as though we could find what we were looking for in California. We can always go there to visit, I guess. Instead, we chose a place to live that is unlike any other. For the longest time it was hard for me to put my finger on why we liked it here so much more. Obviously, we have the beaches.

It finally hit me one day a couple of years ago: Everywhere you go here you see happy people. The people that live here are happy. The people that come here to visit are happy. Every time I meet an out-of-towner and they find out we live here, they're incredibly jealous. That validates the reason I have a smile on my face. Happy, happy, happy.

Happy isn't a lifestyle I guess. It's the result of it.

just returned from yet another trip to the west coast and i found that folks were pretty happy out there too!

of course, i'm a gulf coast beach gal..and since the family has been here lo 300 years, so, of course, that's what makes me happy! it's lost some of its charm and southern values over the years, but i'm still attached.

but happiness is different things to different people, and i don't expect the nation's buying market will necessarily share my taste. as my friends on the west coast who have visited here say they could not be happy without cultural offerings, activities for their children or quality medical care. so to each their own!

just a comment on why many people prefer to pay the california prices despite the comparative bargains this area has to offer.

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