Only Down Lucky 7%

The average price for a home, condo and townhouses has fallen just 7% since Hurricane Ivan hit the area a year ago this last July, according to an analysis of the Emerald Coast Association of Realtors Multiple Listing Service in the Destin and South Walton real estate markets.

The study compared pre-Ivan values to that of today’s prices. However, the median price difference has dropped an amazing $180,900, indicating that buyers making purchases in the marketplace are opting to buy less expensive properties.

The median price for properties being purchased before Ivan was $374,900 compared to today’s median of $194,000.

The average price for a condo, home or townhouse before Ivan was $713,679 compared to the post Ivan sales price of $667,889.

However, sales for the 17 months prior to the hurricane’s date of impact are amazingly close to the 17 months following the storm. Some 2,642 units changed owners from July, 2005 through early December, 2006, while 2,293 homes, condos and townhouse were sold in the like period before Ivan.

Real estate economists were surprised, but not astounded at the figures, saying the market has seen a slowdown in sales volume due to higher interest rates and a national real estate slowdown, which should begin to pull out in the Destin and South Walton areas with more sales activity in the first quarter of 2007.

The lower than expected loss in average values indicates a stronger than expected outcome from a market that appreciated at double digit levels for nearly three years.

The market has been impacted by the higher interest rates, increased property taxes and higher homeowners insurance rates as a result of the series of hurricanes to hit the state.

A special session of the Florida Legislature has been called to resolve the homeowners insurance crisis for January 16th.