Destin Market Shows Upward Move

The Destin and South Walton County real estate market showed a slight increase in sales of homes and condos for the third quarter of 2006 compared to the same quarter of 2005.

The margin of increased sales was slight, but still more than 2005 sales volume. There were 640 homes and condos sold from July 1, 2006 through October 5, 2006 in the Emerald Coast Association of Realtors Multiple Listing Service. Some 628 closed escrow in the same period of 2005.

Some 120 homes, condos and townhouses closed this past month, while 38 more properties closed in September, 2005. However, the upward trend in sales volume for the quarter is considered more significant than single month to month averages based on the longer duration of accumulated sales volume by real estate economists.

There are more homes and condos listed for sale in the areas than in the market’s history, which is forcing some owners to reduce their asking prices in order to sell properties.

The increase in quarterly sales follows a second quarter spike in sales in the market led by sales volume this past July when more homes, condos and townhouses were sold than at any other time in the previous year.

The two successive quarterly gains indicates that the local Destin and South Walton real estate markets are bottoming out and should begin to show higher sales volume in the first quarter of 2007. However, real estate economists who track the markets are uncertain whether prices will increase with additional activity for the time being.

The Destin area transformed into a buyers market shortly after a series of hurricanes hit the state the past two years compounded by a series of higher mortgage interest rates.