Prices up 4.5%! In spite of  a continued sluggish US and world economy, Emerald Coast Association of Realtors MLS area “Destin” posted a year over year increase in sales volume and average sq. ft. homes sale prices, with sales volume up 12.8%  (282 to 318) and average sq. ft. sold prices up 4.5% from 9/27/2010 / 9/26/2011 over the previous twelve months ($154.95 to $161.87).  This is strong testimony to the popularity of our market, since resort communities typically lead primary home markets in downturns, and follow in recovery. Still, it’s a Buyer’s Market with good inventory, lower prices, and all time low interest rates awaiting fall buyers.

Luxury sells along the Emerald Coast!  Year-to-date sales volume is up 37%, and average sales price is up 6%.  Since January 1, the Emerald Coast Association of  Realtors MLS recorded a total of 183 single family home sales over $800,000.  Average sale price: $1,559,563.  Average price per sq. ft.: $434.92.  This compares with 133 sales in the same period last year, average price:$1,349,364.  Average price per sq. ft.: $411.71 sq. ft.

In spite of sluggish economic conditions, Emerald Coast real estate continues to improve dramatically, far exceeding what is happening in most of the country and prognostications from “expert” media scribes and talking heads.  From January 1 through September 20, 2011 the City of Destin Florida posted 342 closed condo sales vs 200 in the same period in 2010.  For the same respective period, Home Sales this year: 238; average price 443,397.  Last Year: 199; average price $447,168.  Miramar Beach (including Sandestin) also posted an increase in condo sales from 244 in 2010 to 352 in 2011. Miramar Beach Home Sales increased from 128 in 2010 to 184 in 2011.  The remainder of South Walton County, including Mack Bayou, Santa Rosa Beach, Grayton Beach, and Seagrove Beach posted an increase in condo sales from 159 in 2010 to 228 in 2011.  Homes sales also  rose: 390 in 2010 to 481 this year.

What a difference a year makes in summer condo sales without the BP well blowout interference!  For the year May 1 through August 29, Destin posted an increase in sales closed of 134.25% over 2010 (171 vs 73), and an increase in average sold price per sq. ft. of 5.95%.  Miramar Beach posted 175 sales vs 102 in 2010, while Santa Rosa Beach and Seagrove Beach posted combined sales of 102 sales 66.

Yes, we’re still famous as a drive-to vacation community.  Nonetheless, our Northwest Florida Regional Airport (“VPS” Fort Walton Beach) has recorded the busiest April and May in its 54 year history, handling 96,799 passengers in April, and 111,566 in May.  These numbers far exceed all previous monthly travel records, and is expected to continue for the remainder of the season.   Service is provided by Delta, US Airways, Continental Airlines, American Eagle, and Vision Airlines.

For the period May 1 to June 15, 2011 the combined Destin, Miramar Beach, Santa Rosa Beach and Seagrove Beach areas posted a 53% increase in condo sales, recording 156 sales vs. 102 for the period in 2010.  Average sq. ft. prices continued to drop, albeit at a sharply reduced rate of 0.8% per month. The average drop is strongly influenced by low prices for short sales and forecosures on lesser quality properties.  As of June 15, 2011 there are only 57 two and three beachfront condos on the market less than 10 years old in these combined areas.

Does age matter?  Yes!  Generally speaking there are real benefits from higher building codes, less deferred maintenance in the unit and the entire condominium,  lower insurance fees, more up-to-date features, better rental income, and more. Looking for a beach front condo less than 10 years old?  Better hurry. As of June 3, 2011, there are a total of thirty seven 2 bedroom 2 bath condos on the market from Okaloosa Island through Destin and all the way through Santa Rosa Beach ans Seagrove Beach.  Twenty three of these are on Okaloosa Island. 

Along the beachfront communites from Destin through the Miramar Beach, Santa Rosa Beach, and Seagrove Beach, there is an inverse relationship between price ranges, and foreclosures and short sales as a percentage of total sales.  Below $300,000, forecl0sures accounted for 21.47% of 163 sales for the six month period 11/23/2010 to 5/23/2011.  Short Sales accounted for 31.9%.  Combined, these sales account for 53.4% of total sales, thereby driving the market.   From $300,000 to $600,000, foreclosures accounted for 19 of 174 sales, or 10.9%, while 39 short sales  accounted for 22.4%.  Combined total, 33.3%.  Between $600,000 and $1,000,000, foreclosures accounts 9% of total sales, and short sales 13.6%, or 22.6% combined.

For the period May 11, 2010 to May 10, 2011, the Emerald Coast Association of Realtors MLS posted 169 single family home sales over $800,000 in Destin, Santa Rosa Beach, and Seagrove Beach.  Prices ranged from Low: $800,000, to Median: $1,050,000, to  High: $8,100,000. In the prior 12 month period, same areas, 144 sales were recorded, or 17.4% less.  Given the devastatingly adverse affect of BP’s Deep Water Horizon oil well blowout wiping out critical spring and summer marketing last year, these numbers reinforce the growing popularity of the Emerald Coast, and the relative strength of our market.  Not included above, Sandestin Golf and Beach Resort recorded an additional 20 sales  of $800,000 or over in the past year.

Per a recent report on housing by Clear Capital Resources, West Coast homes prices are down year over year 5.2%, the Midwest is down 0.9%, the Northeast is down 1.3%, and the South is down 1.1%.  As of May 3, 2011 conditions are far better in our Destin and Grayton Beach Communities. Year over year closed single family home prices for Destin are up 8%, and Grayton Beach is up 3.8%.  For more details, and commentary, see our May 2011 Newsletter.