Thursday, May 28, 2009

Early Summer Update, Foreclosure Websites, Auctions

Happy Memorial Day,

It’s always good when we get positive National press like last week when Cape San Blas was named by AOL Travel as one of the Top 10 American Beaches. Our market has taken a big hit over the last 4 years and articles like this from outsiders help to remind us all that we do have some of the best beaches anywhere. Regional infrastructure improvements like the new Sacred Heart Hospital, The Port, and the new International Airport will be combined with the beautiful area to build a solid foundation. This is in an amazing part of the country that has really not been discovered. Property is as affordable as it's been in the last 7 years.

It is the beginning of summer and calls and interest are picking up as they always do this time of year. This year we are probably seeing the largest number of people looking for these deals since the market began declining in 2005. These buyers are very well researched and hesitant to buy anything less than a tremendous deal. You can see in the statistics below that the market is becoming much more active. There are 44 properties under contract from Mexico Beach to Cape San Blas. Port St. Joe Realty is continuing to produce and remains the #1 sales company for this area in 2009. We have over a 20% market share in an area covered by over 35 companies.

The vacation rental properties are seeing a slight reduction in demand due to the economy, but not very much. I have talked with many owners and managers that are booking at only about a 5%-10% lower rate than previous years. Not bad considering the economy, and there are some properties seeing their highest returns yet. We have gulf front homes that could now be bought in the $700 K range that are grossing $100 K/year in rental income. Articles like the one above talking about the family friendly beautiful beaches really help to bring in visitors. More and more vacant lots are selling this year, even though it is still taking a larger discount to sell a lot vs. a home. The mid-range and higher end properties seem to be selling better at the Cape San Blas Area and the lower end properties are selling in the Mexico Beach Area.

Best Deals Currently on the Market:
Mexico Beach/St. Joe Beach/ Windmark Beach
Vacant Lots

Just added was this almost new townhouse at $119 K
Cape San Blas/ Indian Pass
Vacant Lots
Port St. Joe


2009 Closed Sales
26 Mexico Beach
23 Cape San Blas:
12 Port St. Joe

44 Properties Currently Under Contract
17 Mexico Beach
20 Cape San Blas 7 Port St. Joe

New Foreclosure Websites
Foreclosures continue to remain a hot topic in the market. Many prospective buyers are following these closely hoping to find a great deal. I have designed 2 new websites that make searching for short sales and foreclosures easy. I will continue to improve these websites, and they are now up and running. You can easily view every listed short sale and foreclosure. (There are not as many as you may think in some areas.)
( Mexico Beach, St. Joe Beach, Windmark Beach, & Port St. Joe)
(Cape San Blas, Indian Pass, SR-30A, & CR-30A)make sure all of my foreclosure listings are listed as foreclosures

Several of you along with me are becoming frustrated with the auctions. They are advertising “absolute” selling no matter how low the price is, but then the auction is stopped once the sellers see they are not getting the high amounts they were hoping for. The absolute auction on the canal did not sell 10 units as promised, and it looks like only 3 of the units will actually sell. The Toucan’s deal has also fallen through from the previous auction. There are a few more auctions being advertised this summer, and it’s harder and harder to get excited and believe that they will be legitimate. I have been to all 4 or 5 of the auctions held here in the last 3 years. There have been about 60 properties advertised for auction and about 30 of them as absolute. I have only seen 4 out of these 60 actually sell at auction.

Summer is here. Come on down and enjoy the beach. If you’re looking to buy, deals can be found, and I would like to help you. Let me know what you would like, and I will find it.

Zach ChildsBroker-Port St. Joe Realty850-819-0833WWW.MEXICOBEACHSALES.COM