Real estate on the Emerald Coast continues to roll along with continued strength on the West end of 30A, Sandestin, and Destin while the East end of 30A is showing some cracks in median price resistance but with another uptick in total closed sales. The median sale price on the West end exploded and I think that is due to more buyers seeing that part of 30A as a deal, or buy, as compared to the pricier East end that has been going up in price for some time. As is typical with assets in general, as prices increase over time resistance builds until buyers start looking for more “value” to place their capital. I’ve been predicting a resistance coming to the East end for some months now and although this is only 1 month and not a trend, it will be interesting to see if it in fact does become a trend, that is, price leveling on the East end while the West appreciates more rapidly until it hits a resistance point of it’s own. Either way, I think our market is healthy in that many purchases are cash or buyers who are not over-leveraged and can easily afford debt service payments especially when considering rental income mitigating operating costs. With the stock market so high, this is a great place to transfer some of that high-risk placed capital and let’s not forget, you can use this asset as opposed to a stock or bond, or Bitcoin. Finally, one metric jumps out and that is inventory depletion. Our inventory continues to drop and that can only mean good times for sellers so who knows, prices could continue to escalate for the foreseeable future. I will say this, if you are waiting on the sidelines for a “market correction” before buying, don’t hold your breath. There is nothing in this market or across the country that would indicate some kind of major correction as we had in 2008. At best, a leveling, but not backward. Completely different fiscal environment nation and worldwide.
HIGHLIGHTS
30A
- Median price drop of 13.10% 30A East.
- Closed sales up 109 from 101 30A East year-over-year.
- Median price increase of 26.15% 30A West.
- Closed sales down 51 to 57 30A West year-over-year.
- Median sale price up .80% Miramar/Sandestin year-over-year.
- Closed sales up 112 to 89 Miramar/Sandestin year-over-year.
- Median sale price up 13.61% Destin year-over-year.
- Closed sales down 124 to 127 Destin year-over-year.
