Few Foreclosures in Destin Market

Insulated by a vacation home market in which an average of more than 50% of all buyers pay cash for properties, the Destin real estate market is experiencing very few foreclosures, according to a survey conducted by the Destin Real Estate Newsletter.

Only seven homes and condos are under foreclosure in the market place at present, according to Foreclosure dot com, a web site which lists foreclosures in all 50 U.S. states for sale. Another 65 homes and condos are in the pre-closure process. Many properties that are foreclosed are never listed by real estate agents on the open market for sale and instead are purchased at auction on the court house steps for cash.

The over-whelming majority of properties that are foreclosed, however, are taken over by the lenders, who financed the property and eventually sell for higher prices than the lenders would have received on the court house steps.

The unusually small number of foreclosures is slightly above what the Destin market has in a normal month. The study shows the national sub-prime crisis has not affected the market place with a heavy volume of foreclosures.

Few buyers with lesser credit worthiness are attracted to make purchases in second home markets like Destin. At the market’s peak more than 60% of all home purchases in the local market were made in cash, according to local bankers.

Sales of single family homes, condos and townhouses continue to increase on a monthly basis in the market place with 161 transactions closing during the month of April, 2007. The improving volume of sales is expected to increase as the summer season approaches. The prices on property being paid, however, are substantially below when the market peaked nearly two years ago.