It isn’t often that we spend much time talking about the real estate market on the national level but we should take a quick look at National Statistics in real estate. Our market here on 30A is very different for obvious reasons and the national statistics do not provide much insight in to what the condition of our local market truly is. The most obvious reasons are these: most purchases are for second homes (not primary residences) and many being placed with property managers who handle vacation rental properties. The average household income for buyers is much higher than the national average and we have very few first time buyers here. That being said, it is still interesting to look at some of the national statistics from time to time.
The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury are two long time and very detailed sources for activity in the national real estate market. Here are a few of their findings through April of this year:
House prices remain stable, rising 7% over last year which is a far more sustainable rate than the 20% we have seen on the beach. Foreclosures are at their lowest level since 2007 and this trend is expected to continue as lending institutions write down and dispose of non performing loans. There were 28,840 properties repossessed by lenders in March of this year which is down a whopping 34% from a year ago and are at their lowest levels since July of 2007! Bank repossessions here on the beach have slowed to a trickle and when these properties hit the market here, they almost always go for more than ask and are not on the market long (usually less than a couple of days).
New home purchases dropped 14.5% in March of this year over last year. Locally, we have seen a decline in overall activity over last year which reached an almost frenzied state due to lower inventories and new housing starts. Our market here is still strong and should stabilize with appreciation rates coming down to levels below 10% which will strengthen the market in the long term. Home prices rising at a 20% to 25% rate is not sustainable. Our agents here at Homes On 30A are having solid years and we are optimistic about the remainder of 2014. Interest in purchasing is strong and interest rates are still at historic lows.
3092 W County Hwy 30A
Santa Rosa Beach, FL 32459