Not a Boom But Not Bad Year!

The Destin-South Walton real estate market ended 2005 with stronger than expected real estate sales compared to 2004.

Sales of single family homes, condos and townhouses were down 27% from 2004 levels. Real Estate economists attribute the decline to the series of hurricanes, record number of tropical storms, higher interest rates and a trend towards a slower National real estate market.

There were 2,985 properties that changed owners through January 4, 2006, according to figures compiled from the Emerald Coast Association of Realtors Multiple Listings Service.

The numbers were strikingly similar to that of 2003, which recorded the areas second highest level of sales. There were 3,328 homes, condos and townhouses that changed owners in all of 2003.

Some 4,079 sold in the same period of 2005. The sales pace picked-up speed in December over this past November, showing signs that the local real estate market is beginning to come out of the slower pace it has been in since Hurricane Dennis came ashore on June 15, 2005. Dennis had a crippling affect on the area's real estate economy. New home starts are down nearly 80% from 2004 levels.

Properties priced over $500,000 to about $1-milliion are the slowest to sell. Homes and Condos under the half a million dollar point and over a million dollars seem to be selling more quickly. Buyers of property over $1-million are more likely to pay cash for real estate. There are more properties listed for sale in the area than in many years.

The Destin and South Walton real estate markets are still active, but have clearly made the transition from a sellers market to a buyers market. Property values of real estate that is closing escrow in both resales and even some new homes have declined in some market sectors. But not all values have depreciated.

Local real estate agents and brokers expect a spike in real estate sales to occur in the spring, but not nearly at the record setting levels of 2004. The second home market which the Destin and South Walton real estate markets compose is the fastest growing sector of the real estate industry.

Real estate economists expect it to continue to grow for a number of years as more and more people select to purchase a second home or vacation rental property. The Florida state government now estimates 1,100 new residents a day are moving to Florida. The state does not compile figures on the tens of thousands of condominium and homeowners who purchase property in Florida who are only part time residents, which some real estate experts estimate to be as high as 60% of the state's burgeoning real estate market.