First Half of 2006 Sales Show Upside

The Destin and South Walton real estate markets have turned from a declining sales market to more robust levels, according to statistics compiled from the Emerald Coast Association of Realtors Multiple Listing Service.

Sales of single family homes, condos and townhouses in Destin and South Walton in the last three months have maintained the same steady level, indicating the market has flattened. But more pending re-sales are reported in the area now with 178 than at any time in the past year, which shows the market is beginning to show a trend of improving sales volume.

Some 751 condos, homes and townhouses closed escrow in the first half of 2006 in South Walton and Destin compared to 1,942 closed units during the same period of 2005. Sales in June amounted to 130 homes, townhouses and condos. In May 139 units closed, and in April 131 homes, condos and townhouses were sold.

The narrow margin of sales indicates a market that has become a buyers market, but is beginning to show signs of more sales volume movement. Real estate economists have long expected the change, despite higher mortgage rates.

Economists expected the market to flatten and then make a slow but steady recovery. Waterfront properties are particularly hard hit. In many parts of the market prices will continue to decline for a while, perhaps as long as six months before increasing again, according to the economists. Increasing demand for properties is expected to show a steady increase through at least late fall.

There are deals again in Destin. It’s a buyers market. The area experienced its highest appreciation levels in history until mid-July of 2005 when the Destin and South Walton markets slowed, triggered by Hurricane Dennis and a series of mortgage interest rate hikes, the most significant in more than a decade. However, interest rates for the bench mark fixed rate 30-year mortgage remain in the 6.5% range, which is still historically low by comparison.

Sales volume for the first half of 2004 was actually higher than last year. Some 2,260 homes, condos and townhouses closed in the first six months of 2004, indicating the sales volume of the Destin real estate market and South Walton market actually peaked out in 2004.

However, double-digit appreciation continued in many parts of the market through mid-2005 when the market suddenly slowed.