Destin FL & Vicinity Condo Market Update

May 2012 -- With 2011 already the record books as a great year for our local condo market, the first two months 2012 indicate a continued trend toward additional condo market gains.  Buyers continue to take advantage of record low prices and interest rates.

Condo Sales Hit 7 year high.  Charts to the right illustrate the number of condo sales in January-February this year compared the same period each of the previous 9 years.  Condo sales in January-February this year rose 30% compared to January-February last year.  The last time condo sales were higher was January-February 2006.

Condo Inventory Hits 8 year low.  The total number of condos for sale as of March 1 was 1,639 units.  The number of condos for sale has not been this low since November 2004 when sales rose to record highs and absorbed most available condos for sale.  Condo inventory has been in decline since the July 2006 when the condo inventory hit its all time high of 5,047 condos for sale.

Effect of Inventory on the Condo Market.   Lower inventories and continuing low interest rates are beginning to nudge prices upward.

Sales are up, but what about prices?   Condo prices which had fallen have now stabilized largely due to the increased number of buyers and the shrinking inventory.  Continued low interest rates and falling inventory will likely come into play this Spring and begin to lift prices slightly.  Condo Inventory is at a 8 year low. Number of buyers at a 7 year high.

What about distressed property - increasing or decreasing?   Bargain basement distressed inventory is noticeably thinning and a rise in price seems inevitable, especially in the condo and second home markets where buyer pressure is strongest.

What's fueling the condo market Recovery?  Buyer polls show that condo sales are being fueled by the combination of three economic factors: 1) deflated condo prices; 2) Record low interest rates; and 3) increase in overall gross rental revenue as evidenced by the uptick in Okaloosa and Walton county bed tax collections

Condo Foreclosures - What to Expect

Expect your offer to be one of several being considered.  It surprises some to hear that there are only 14 condo foreclosures (as of March 13) along the 20 mile stretch of beach between Fort Walton and Sandestin Resort.  Only 4 are located within a gulf front complex.  Others are still near the beach but more inland.

Many condo foreclosures sell at-or-above list price.  With so few foreclosed condos, buyer pressure is high and multiple offers are typical.  For this reason, 50% of all condo foreclosures sell at or above list price.  Hone expectations accordingly. 

Make sure you understand the challenges.  Please call us if you'd like additional info with respect to what to expect when making an offer on a foreclosed condo.

We Appreciate your Business

We'd appreciate an opportunity to earn your business.  Buyers searching for bargains will be successful if they do their homework.  Although true bargains are scarce, smart buyers teamed with a great Realtor team can find the right fit.   We're here to help if you need us!

Condos for For Sale

Please let us know if I may assist you in obtaining detailed information for properties located in any of the following cities or regions below.

Area

Condos

Town Homes

Homes

Lots / Land

Total

FORT WALTON BEACH

263

56

271

68

658

GRAYTON BEACH AREA

150

16

358

276

800

NAVARRE

41

7

150

191

389

SANTA ROSA BEACH

67

15

296

627

1,005

NICEVILLE

18

24

232

74

348

DESTIN

482

28

273

149

932

SANDESTIN

167

28

105

54

354

MIRAMAR BEACH

276

23

85

71

455

FREEPORT

0

0

127

265

392

Total:

1,464

197

1,897

1,775

5,333