Welcome to another review of market activity in the 30A, Destin, and Miramar Beach/Sandestin areas.
Interest rates fell sharply this week to 3.6% for a 30-year fixed mortgage. With financial markets whipsawed by the U.S.-China trade war bond rates have dropped to record lows which in turn lowers mortgage rates. We are at the lowest level since November 2016. This also means investors are fleeing stocks and rushing to more conservative havens of gold, bonds, and real estate. It seems the FED has in mind potential additional rate cuts as well. Of course, our real estate market is more suited for second-home end users than pure investment.
Just as good for real estate, Americans have never felt better about buying a house. Fannie Mae’s monthly survey on home buyer attitudes hit a survey high–a 2.2–July gain to 93 in consumer attitudes about whether it is a good time to buy a home. This is likely due to ongoing housing supply and affordability challenges to strong job confidence and favorable mortgage expectations. Consumers also feel interest rates will drop again within the next 12 months.
Although luxury home sales slipped 4.6% year-over-year, the drop was much smaller than in the first quarter meaning luxury home sales are stabilizing. Prices rose 1% compared to a 1.7% decline in the first quarter. Much of this has to do with changes in the tax code and people with big mortgages in high-tax states and counties couldn’t deduct as much from their annual tax bill.
The 30A real estate market continues its trend of a year-over-year drop in sales volume and median price on the East end and an increase in sold volume but a drop in median price on the West end. Pending sales on each end are up. People are simply finding better pricing on the West end with many sales in the East due to buyer’s demand for planned community living such as Rosemary Beach, Watersound, Watercolor, Seaside, and Alys Beach. Inventory also seems to be increasing meaning better opportunities for buyers. Planned communities generally will carry a higher price per square foot tag considering the amenities.
30A East Snapshot (Year-over-year):
- Sold: 11.7% decline
- Pending: 55.6% increase
- Active Listings: 1.6% decline
- New Listings: 8.4% increase
- Absorption Rate (Months of inventory): 2.56% increase
- Median Sale Price: 1.35% decline
30A West Snapshot:
- Sold: 31% increase
- Pending: 54.5% increase
- Active Listings: 14% increase
- New Listings: 3.8% increase
- Absorption Rate: 23.97% increase
- Median Sale Price: 12.5% decline
The Sandestin/Miramar Beach market had a drop in closed sales while Destin had a substantial jump in closings. Median price is up in both markets and exploded by double digits in Destin. Pending sales took a hit in both markets. Inventory is fairly stable but dropped and continues to be lower than on 30A.
Miramar Beach/Sandestin Snapshot:
- Sold: 18.4% decline
- Pending: 20.4% decline
- Active Listings: 14% decline
- New Listings: 15.3% decline
- Absorption Rate: 13.51% decline
- Median Sale Price: 4.76% increase
Destin Snapshot:
- Sold: 19.1% increase
- Pending: 10.5% decline
- Active Listings: 3.9% decline
- New Listings: 14.9% increase
- Absorption Rate: 0.33% increase
- Median Sale Price: 21.75% increase
Below you’ll find more detailed numbers in your favorite areas and planned communities.
As always, our goal in sharing this data with you is to create a better understanding of trends, local and the broader economy, affecting our unique housing market. We hope you find it to be a valuable resource, and we look forward to working with you to meet your real estate needs now and in the future. If you have any questions about the 30A, Destin, Miramar Beach/Sandestin market, please do not hesitate to reach out to me at 850-376-3269. We love talking about real estate!
