Hindsight is 20/20
Warren Buffet once famously said that the only way to truly know when a market has reached it’s highest point or it’s lowest point is to look in the rear view mirror.
One of the most respected real estate data reporting services in the entire nation is the Standard & Poor/Case Schiller Home Price Indices. This group has been one of the leading measures of U.S home prices and related indexes for many years. As of March 31 of this year, we can now “look in the rear view mirror” as data available shows enough of the last 10 years to be able to evaluate where we are historically.
Let’s keep this simple…
Home prices in America peaked in June/July of 2006. Between June/July of 2006 and March of 2012, the average value of homes dropped 35%. from the lowest point in March of 2012 through March of 2013, average prices have increased 12%. This puts current home prices at 2003 levels.
So, lets simplify this even more….
The Real Estate market peaked in July 2006. It reached it’s bottom in March of 2012. On average, the market dropped 35% (bigger drop in areas here along the beach with higher priced second homes/investment properties). From the lowest point, the market has now rebounded 12%, back to 2003 prices
With hurricane season here once again, now is a great time to share some thoughts on things to think about and a give a little advice.
One of the best insurance brokers in our area shares this advice with property owners here along the beach.. “Our area is classified as a barrier island and it is our belief that nearly every homeowner in our area needs flood insurance!”. As real estate agents, we agree with this philosophy and NEVER tell a homeowner they don’t need flood insurance. There are different flood classifications that underwriters depend on here when writing homeowner policies. A flood classification of “X”, for instance, means that flood insurance is not REQUIRED and many people will choose not to include it in their coverage. Keep in mind that in order to have a fully comprehensive policy, you need the homeowners coverage, wind coverage and FLOOD COVERAGE. if you are in flood zone “X” you will be surprised how reasonable the premiums are and it’s simply a safe thing to have!
Alys beach with it’s luxurious Mediterranean flare is gaining some steam in land and home sales. This week their first Gulf Front home sold for $8.5 million dollars, which is in the top 3 highest sales ever along Scenic Hwy 30a. This 158 acre community has a feel of Bermuda with its impressive white stucco compound and villa style homes. With Their manicured green spaces and soaring palms lining Scenic 30a, you feel as if you have stepped onto this magical island.
We are so lucky to live here along Scenic Hwy 30a and have the opportunity to view these Coastal Dunes lakes every day. These rare coastal dune lakes are natural habits for migrating birds, unique plant, alligators and other wildlife. The only other areas of the country that share these natural wonders are found in Oregon and South Carolina. These dune lakes are truly special.
The lakes intermittent connection to the Gulf of Mexico make each lake unique. Some are fresh, some brackish and some salty depending on water levels and when the lakes “breakthrough” and drain excess water in to the Gulf of Mexico. These coastal dune lakes have been recognized by the Florida Natural Areas Inventory as “extremely rare and indispensable to the coastal wetland system”. Not only do these beautiful lakes store and filter water, they also provide natural habitat for a variety of unique plants and animals.
So the next time you are traveling along Scenic Highway 30A enjoying the beauty of these coastal dune lakes, know that they are quite famous and are the result of some of mother nature’s best work and the protective efforts of a lot of people as well !!
Homes on 30a Welcomes Dallas Woods
KAREN AND RANDY HOLDER OF HOMES ON 30A, LLC, THE AREAS NEWEST REAL ESTATE BROKERAGE, ARE EXCITED TO ANNOUNCE THE ADDITION OF DALLAS WOODS TO OUR SALES STAFF. DALLAS COMES TO HOMES ON 30A WITH A BACKGROUND IN REAL ESTATE SALES IN HER HOME TOWN OF ATLANTA GEORGIA AS WELL AS SEVERAL YEARS AS A TRANSACTION COORDINATOR WITH ANOTHER FIRM HERE ON THE BEACH. “WE ARE THRILLED THAT WE WERE ABLE TO BRING SOMEONE OF DALLAS’S CALIBER ON BOARD HERE. SHE WILL BE AN IMMEDIATE ASSET TO US” STATED RANDY.
DALLAS WILL BE A RESIDENTIAL SALES AGENT WITH A CONCENTRATION ON LUXURY PROPERTIES ALONG THE 30A CORRIDOR.
GET IN TOUCH WITH DALLAS:
Year to Date Sales in Watercolor
Watercolor continues to drive the real estate market along Scenic Hwy 30a. Since the beginning of the year, 40 homes have sold and there are another 29 under contract. There are currently 75 homes for sale and there are over 70 new homes under construction. Residential lot sales haven’t been too shabby either with 27 lots sold and another 5 under contract. With Summer kicking off this weekend, we will see if the buyers are willing to make the upward shift in price.
If you are interested in buying or selling real estate in Watercolor Florida then call the local experts at Homeson30a.com We have extensive experience and knowledge and look forward to hearing from you this Summer
Homes on 30a
5399 E Cty Hwy 30a Ste #6
Santa Rosa Beach, Fl 32459
30a, A Real Estate Market in “Flux”
I try to set aside some time each morning to read some of the state and national updates on what is taking place in the real estate market. It is clear to me, at this point in time, that we reached our bottom in price sometime late last Summer, 2012. Since then we have seen a spike in prices from home sellers as well as a spike in builder’s pricing on new construction. We are now experiencing a bit of hesitation from buyers as these prices are being forced up on the selling side and this will create a moderating effect on prices as we head into the Summer here on the beach. Demand remains good but it is not going to be strong enough to drive prices much above a 5 to 8% increase from the lows we have experienced.
According to Core Logic, a national publication that tracks real estate statistics, we reached our high point in prices in the State of Florida in September of 2006. Since then, we have experienced a 43% drop state wide. Distressed sales (short sales and bank repo’s) continue to drop and the prices have increased 8% over last year.
Something to remember about our market is this; despite a climb in prices, real estate is still a great value because prices remain well below 2006 prices. This, coupled with interest rates that have not been this low since the 1950’s, creates a healthy overall environment and will continue to drive demand, only at a more steady pace.
Purchasing real estate is, for almost everyone, the biggest purchase you will EVER make. The single most important decision surrounding the single biggest purchase you will EVER make is “how do I choose a real estate agent”?
First of all, there is a vast difference in the skill sets found among real estate agents. The adage in real estate is that 20% OF ALL AGENTS MAKE 80% of the commissions. Why is this? The conclusions are obvious. Here are some things to remember when choosing a real estate agent:
Ask, ask, ask !!! Find out about an agents experience; it counts. Find out how long an agent has been living in the area you are interested in. The longer, the better. How many transactions did the agent have last year? What is the average amount of an agent’s sales. Does the agent spend more time on listings or with buyers? Always remember that an agent with a listing is far more responsible to the seller than to a buyer. The higher an agents average closing figure is, the more likely they are to be skilled at negotiating with discerning buyers and sellers.
A real estate agent that asks you a lot of questions is a trained salesperson. If they are not interested in you, your situation, your requirements etc. chances are good that they will try to sell you anything.
A real estate agent that advertises that they cover large areas and are expert at many areas are not expert in any area! “I specialize in beach property from Navarre Beach to Panama City Beach” is not responsible advertising and simply not true.
A good rule of thumb to remember is that one of the biggest mistakes people make is calling on a listing and choosing their agent based on who answers the phone. Not ever a good idea. That person may very well be a great agent but do your homework and check around. There is no fool proof way to find the best agent for you but asking questions and talking with friends who have purchased in the area you are looking at (referrals) is a tremendous help.
contact Homeson30a.com today
Your Real Estate Agent and Homeowners Insurance
The majority of homes sold in our area here along 30A are purchased by people who do not live in the state of Florida. Most of these purchases are also second homes, most of which are placed in vacation rental programs. Given these facts and the changes in
insurance regulations it has never been more important than now that you have a real estate agent that is knowledgeable about homeowners insurance and also has the ability to get you in touch with the experts. Your agents here at Homes on 30A use the best insurance company with the best agents, hands down, in the entire area to handle this process Here are some things to remember about insurance coverage:
This entire area is classified as a barrier island. However, there are areas here that do not “require” flood insurance. We strongly suggest you get a flood policy along with your homeowners package. If you do not have flood insurance, you do not have “full hurricane coverage”!
The biggest factors in determining cost and availability of coverage are as follows;
1. Age of dwelling. The older the dwelling, the more inspection/mitigation required.
2. Use and type of ownership. Second homes not on rental programs are easier and less expensive. Homes purchased in an individuals name vs. an LLC or a trust are preferable.
3. Location; Flood zone classifications and base elevation of structures.
Other factors that will apply are construction details, amount of coverage, foundation type, wind mitigation components etc.. Do not ever hesitate to ask questions about your homeowners coverage. If you are using an experienced, professional agent, they will not hesitate to refer you to a qualified insurance expert to assist you.
www.Homeson30a.com for all of your real estate needs. 850.213.0890
30a Market Trends
Latest housing figures are out:
The single most asked question by prospective buyers and sellers today is “ what is the market doing “. This question is fueled by an overall consensus by experts in the industry that the market is definitely changing.
Here is what we know: Florida’s housing market continues to demonstrate it’s recovery. The figures for March show statewide median sales prices have increased for the 15th straight month. We have experienced a 9% increase over this time last year in closed sales. Pending sales in March are up 23.4% over last March. Closed sales typically occur 30 to 90 days after sales contracts are written which means that these increases are continuing to rise.
The 2 primary reasons we are seeing prices rise are the amount of inventory available for purchase is shrinking and interest rates on mortgage money remain at incredibly low levels. The Federal Reserve does not see an increase in interest rates likely for the next 12 to 18 months which further fuels the demand for home purchases. Florida Realtors Chief Economist Dr. John Tuccillo states “ we expect to see inventories rise as we approach the last quarter of 2013”. This means we will see these “spikes” in prices and sales begin to moderate over time which will bring stability to the market.
Overall, our real estate market here on 30A is strong and active. Prices are beginning to rise for the first time in 7 years but they remain far below 2005 levels. Mortgage financing has become more stringent with higher down payments required and full disclosure documentation from applicants which also creates a more secure real estate market.