Slower Market is Kind to Buyers

The Destin and South Walton real estate market showed slight signs of improvement over the past three months, despite lagging sales.

First quarter sales of 2006 were significantly behind the first quarter of 2005 with more homes and condos listed for sale in the Emerald Coast Association of Realtors MLS service than ever before in the markets history.

Real estate analysts attribute the drop in sales to the series of hurricanes to hit the state of Florida in the past two years, 15 interest rates hikes and higher homeowners' insurance costs, discouraging some buyers from the marketplace.

Some 371 homes, condos and townhouses were sold during the first three months of 2006 compared to the record breaking pace of 908 for the same period of 2005. That accounts for a drop in sales of 59% for the first three months of 2006.

The Destin real estate market has now made a full transition into a buyers market, but homes and condos are still selling that are priced at or below market prices. Real estate analysts predict that the market will continue to sustain sales at a healthy pace. Many forecast the cheery future for the market based on the fact that resort real estate markets are the strongest sector of real estate in the nation.

Resort markets are bolstered by 83-million baby-boomers, many of whom are looking for a higher quality of life and want a second home or condo to utilize for vacations and some owners use as a rental property. There are also numerous tax advantages for owners of second homes and rental properties.

Over at least the past five years waterfront properties along the Gulf of Mexico in Destin and South Walton County have appreciated at double digit levels. Real estate markets typically work in 7 to 10 year cycles nationally.