Surf's Up for Destin Market

After languishing in a market slowed by higher interest rates and home prices that had soared to record highs, the Destin and South Walton real estate market recorded more closed transactions in February than in the last half a year.

Some 123 homes, condos and townhouses sold in February, the highest number for a single month since August, 2006 when a summer spike developed, according to statistics compiled from the Emerald Coast Association or Realtors Multiple Listing Service. The highest number of sales to occur in six months represents a market that has bottomed out and is headed upward, mainly due to lower home and condo prices. Real estate economists expect the spike to continue through the summer.

Buyers in the market place, however, who are closing transactions are purchasing properties for substantially less than what homes sold for at the markets peak in July, 2005. Many are selling for 20% to 30% below those figures.

Pending resales have also increased to124 in the Emerald Coast Association of Realtors Multiple Listing Service for Destin and South Walton. There are also an additional nearly 200 homes and condos that are preconstruction units pending not tabulated in the statistics because preconstruction sales do not accurately reflect a markets direction on a month to month or quarterly basis.

The higher sales volume coupled with the increase in pending sales demonstrates a spring spike in sales is already occurring in the marketplace. The number of properties on the market has also been declining in preparation for the increase in rental users who vacation in Destin.

Many rental companies booking seasonal rentals in the Destin and South Walton areas expect the spring and summer tourist season to record the markets highest rental rate in the areas history, fed by an increase in tourists from the south-east and more foreign visitors attracted to the area.