December 2014 -- Condo sales are at an 8 year high. The number of sales this year has exceeded seven previous. Progressive year growth demonstrates the continued recovery of our local condo sales market. The chart below illustrates condo sales numbers each year-to-date over the past decade.
What's fueling the condo market Recovery? Destin and Vicinity condo sales are being fueled by the combination of three factors: 1) condo prices; 2) historically low interest rates; and 3) an increase in overall gross rental revenue as evidenced by the uptick in Okaloosa and Walton county bed tax collections. Rental income this year has toped all others in our local area.
Condo Inventory. Condo inventory has been falling rapidly since July 2006 when it hit it's high of 5,047 units. 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 at the height of the market.
Effect of Inventory on the Condo Market. Inventories have shrunken well below their 10-year median. Lower inventories and continuing low interest rates are beginning to nudge prices upward. 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.
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. Buyers a 5 year high.
Expect your offer to be one of several being considered. It surprises some to hear that there are so few condo foreclosures along the 40 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'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!
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.
Condos for sale - sorted by City and Complex -- we now provide a way for you to search for all Condos for sale at over 1,200 neighborhoods within 25 miles of Destin. Use the links below to find your favorite condo for sale, bookmark the page, and return often to keep track of local condo inventory and prices.
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