February 2016 -- Condo sales are at 10 year high. The number of condo sales this year has exceeded nine previous years. Progressive growth since 2009 demonstrates a continued strong buyer demand for local condos within our Destin & vicinity market. The chart below illustrates the number of condo sales for each year of the past decade as measured year-to-date for each year.
What's fueling the increased number of condo sales? The significant upswing in the number of condo sales is being driven by three primary factors: 1) condo prices remain affordable; 2) historically low interest rates are available; and 3) local area condos are experiencing increases in overall gross rental revenue as evidenced by the uptick in Okaloosa and Walton county bed tax collections which is a percentage of total rentals along our beaches.
Condo Inventory. Condo inventory was at its highest point in July 2006 when condo inventory reached its high of 5,047 units. The record lowest number of condos for sale in recent market history was in November 2004 when condo inventory fell to 1,240 units. As illustrated on the Condo Inventory chart to the right, the total number of condos currently for sale are near its record low.
Effect of Low Inventory on the Condo Prices. Current low inventories and record high consumer demand for condos have nudged prices upward of the past 2 1/2 years. Sales prices indicate most local condo markets have seen median condo prices rise 4% per year. This rate of price increase is close to the 20 year median for our local area showing a normalized rate of growth. While owners may wish for a more rapid rise in price, history has shown us a slow steady growth of prices in our area more sustainable and healthy for local real estate investors and the industry as a whole.
Distressed sales no longer control the local condo market. The number of short sales have been falling since 2010 and have diminished to a point where they have little influence on market value. While small in number, they linger within our local condo market as banks slowly release remaining backlog.
If you're buying a foreclosure or short sale expect your offer to be one of several being considered. Also expect the process to be rigorous with a long wait for the sale to be final and no guarantee of outcome. Also, the rising prices of condo inventory make banks and other mortgage holders less likely to sell at bargain prices.
Currently, most foreclosed sales are garnishing market value and even above market value as as many buyers automatically assume 'foreclosure' means bargain. It doesn't anymore.
For that reason, we always suggest you do your homework (we're here to help of course) to make certain you have a deal worth the additional hassle and risk prevalent in purchasing most local foreclosures.
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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