Greetings from your Favorite Coast,
I'm writing this newsletter with as much optimism towards our real estate market as I've seen since 2005. Prices have taken a huge plunge since that time, but it's fun to hear all of the people talk about prices on the rise. I feel too busy to stop and write a newsletter, but I had many people ask after the one I sent out last month to start sending them monthly. I share my optimism with Realtors and buyers I regularly talk to in our neighboring markets of Panama City, St. George Island, and Destin. All of them are reporting the highest interest from buyers since '05 and that prices are going up. Interior vacant lots remain the biggest exception to price increases and generally the closer to the white sandy beaches, the more of an increase you're seeing. Even Port St. Joe is seeing some good signs as the numbers of homes on the market keep getting lower and lower. In last month's newsletter I mentioned the first spec houses in years being built and we've seen some of those go under contract and more are being planned.
If you had a crystal ball, you could look back and see signs of the bottom of the market starting in late 2010 and 2011 after falling since late 2005. The signs of a correction starting were there, but confidence from buyers was low and the market was still fearful of what could come. That seems to be gone now and 90% of people I talk to that are informed on coastal real estate feel we are in for at least a few years of an upward swing. I don't want to sound too optimistic and am by no means saying we will get back to 2005 prices soon. It will take 10-15 years of moderate increases to get back anywhere near 2005 prices on some properties, but at least we've started going in the right direction. Here's an article published by Reuter's on Tuesday titled US Home Sales, Consumer Confidence Soars. Here's another positive article published on Wednesday by CNBC titled "Pending Homes Sales Soar Despite Rough Winter".
Our hottest market is the North End of Cape San Blas followed by Mexico Beach. "X" flood zone homes and lots on The North End are being snagged up and there's almost nothing on the market near the market low prices. The majority of well-priced newer inventory is gone in both markets and buyers are begging for more quality homes on the market. Rental income is helping to drive demand and further supports why our greatest demand is for properties near the beach. I've closed a few deals on St. George Island lately and that market is red hot as well. I closed one this month for $1,730,000 which was $335,000 over asking price after multiple offers came in and highest and best counters were given.
We are still having some fun along with selling property. Every year the 98 Real Estate Group cooking team participates in the Mexico Beach Gumbo Cook-off that raises money for the 4th of July fireworks show. We've got the Superintendent of Schools, Jim Norton, as our head chef and our team has gotten pretty used to winning. Our run ended this year and all we managed was a 3rd place in the Brunswick Stew category. Here's a cool video we made of the weekend.
I told you last month that 2013 was looking like a prosperous year for us and as of this week, 98 Real Estate Group is number two on MLS for 2013. I have a big support team that helps me to be successful and I'm very thankful for all of them. I've recently had some big deals that have taken lots of work and time that have successfully closed for the buyers and sellers I've been working with. Because of them, I'm currently the #1-ranked agent based on sales volume for 2013.
I've been mentioning the lack of newer inventory and want to illustrate this fact. Below is the number of single family homes for each area built in 2005 or newer that are on the market.
That's only 26 homes built in the last eight years on the market in a 35 plus mile stretch. What about all of those new condos in Mexico Beach? Well, there were eight gulf view projects completed in 2005 or later totaling 301 units. Of those, there are only 19 units on the market starting with a 2BR at $192,500.
This will be the 3rd year 98 Real Estate Group has presented the Ling Ding Fishing Tournament. Not only does this create activity for visitors but proceeds go towards local causes. We have added Amberjack as a 3rd species this year (in addition to Cobia and Spanish Mackerel) and the tournament will be held each weekend in April. Make plans to attend the kickoff party April 5th at Regan's Oyster Bar and the finale April 27th at Mexico Beach Marina.
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