Summer Spike Shows Improving Market

A mid-summer spike in closed real estate transactions shows an improving market in Destin and South Walton real estate sales volume.

Some 294 homes and condominiums closed escrow in July, the highest level of sales to occur in a year for any single month. The development is being hailed by real estate economists as the possible bottom of the market. There were 347 homes and condos that closed for the same month a year earlier.

The higher than expected number of sales came just eight days before the Federal Reserve Bank Board voted to hold interest rates at their present level. The Fed held off raising interest rates at its meeting August 8th, perhaps signaling an end to higher rates, which are blamed for slowing the market.

Earlier the Chief Economist for Fannie Mae, David Berson, said he thinks the Federal Reserve "is not done tightening" interest rates.

Berson expects average home price appreciation nationally, which had been running at a double-digit annual rate in the last year, to drop to 3 percent or below by the end of the year.

Berson declined to name specific markets, but said that Fannie Mae worries about parts of California and Florida. However, the Destin and South Walton markets may have already hit bottom levels, according to economists.

The second home market, which composes the majority of Destin and South Walton real estate sales, has been the strongest single sector of the real estate market nationally for more than five years.

Investors are showing growing interest once again in the market. At least three purchases have recently closed by Real Estate Investment Trusts, and a fourth is presently under negotiations.