The True Market- Mexico Beach FL to Cape San Blas Real Estate

Happy Holidays - Mexico Beach to Cape San Blas Market Report

2011-12-15T12:14:00.001-08:00

Happy Holidays,

I hope that everyone has had a wonderful year. I’m pleased to report that from Mexico Beach to Cape San Blas, there have been more closings in 2011 than any year since 2005. There have already been 413 sales as people continue to buy up the heavily discounted properties. A large majority of these sales were either short sales or foreclosures that have currently accounted for 168 closings in 2011. (There were only 190 sales for all of 2008) There is also an additional 91 properties currently under contract.

Higher sales volume paired with many owners withdrawing their listings (until the market will allow them to sell for higher prices in the future) has decreased the number of properties on the market considerably. There were over 1,450 properties on the market in December of 2006 compared to less than 840 today. The beach properties remain the most active markets and below is the breakdown of where the closings have occurred as well as links to see the properties that have sold in 2011 through December 12th.

Mexico Beach/St. JoeBeach/WindMark-193 Closings-http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061345910

Cape San Blas/C-30/IndianPass-143 Closings-http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061345911

Port St. Joe/Highland View/Oak Grove- 75 Closings-http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061345914

It’s not uncommon for interior vacant lots to sell for less than 10 cents on the dollar compared to their 2005 values, condos to sell for 1/3 of their former selling prices, and single family homes to be reduced hundreds of thousands of dollars. Below are the best deals currently on the market:

Mexico Beach/ St. Joe Beach/ WindMark Residences-http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061353062

Mexico Beach/ St. Joe Beach/ WindMark Vacant lots-http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061353066

Cape San Blas/Indian Pass Residences- http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061359409

Cape San Blas/Indian PassVacant lot- http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061359413

Port St. Joe Residences- http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061353068

Port St. Joe Vacant Lots- http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061353070

2011 was a banner year for tourism and lots of visitors came to spend time and enjoy this beautiful area. There was a great sense of fun and optimism this year compared to the worry and fear from the BP oil spill that dominated 2010. The fishing was great and the bay was full of scallops once again. It’s been a fun place to live and visit with many concerts, festivals, fishing tournaments, and great fireworks. Many business owners have reported 2011 as their best year ever. Gulf County tourism reported the highest bed tax revenues in history and is up 11% from last year. Mexico Beach reported similar increases. This is collected from local motels and vacation rental properties. This improved rental income is making owning a 2nd home or investment property much more attractive for many buyers. Buyers have many different intentions, but one of the most common types of buyers we deal with is people looking for a second home/future retirement property. Most of them want to use it for themselves and their families, and also rent it out enough to help with expenses and bring in extra income.

98 Real Estate Group has truly been blessed during our first year of business. We recently had the privilege of opening our 3rd office in September. We were selected by The St. Joe Company (NYSE:JOE) to operate the sales office at WindMark Beach and exclusively list properties for The St. Joe Company in this area. This partnership has been a great combination of resources and knowledge. We have been able to close 88 transactions in 2011 with a number of additional properties scheduled to close before the end of the year. I’ve been very fortunate to continue to work with a number of great buyers and sellers. I’ve made lots of friends this year with people that have bought properties and I’ve personally sold 41 properties this year. I appreciate the opportunity to work together and have successful relationships with so many of you. Those of you not familiar with WindMark Beach will hear me mention it more and more in the future. Here’s a picture I took walking the beach there a few days ago.

My job becomes more enjoyable each year as I meet more great people that love this area. It’s hard for me to believe that I took my first job on the coast as a clueless intern at WindMark Beach 8 years ago. I’ve learned a lot along the way and am excited about continuing to improve helping buyers and sellers along with operating 98 Real Estate Group. I was again one of the top producing agents from Mexico Beach to Cape San Blas. I have more plans for 2012 than I’ve ever had and hope it’s my best year yet. I’m proud of the service I provide and welcome you to read these testimonials written from buyers and sellers I have worked with in the past.

Not just tourism and real-estate sales were up in 2011. The local business climate has been improving and we’ve had some great additions in the area. This is most noticed in Port St. Joe. A new CVS, Dollar General Market, and remodeled McDonalds will greet you now as you enter town from Hwy 98. These updates along with the additions on Reid Avenue are greatly improving the Port St. Joe downtown shopping experience. We love the small town feel and these additions as well as the new hospital and number of other locally owned businesses make it more convenient to live in the area without having to rely on a trip to Panama City for products and services. We also saw the opening of Bailey’s Crab House in St. Joe Beach and Tripletails Oyster Bar in Simmons Bayou. I’ve enjoyed great meals at both of these places and am glad to have them as additional options for fresh seafood. Another place that I recommend trying (that many people haven't been to) is the beautiful Boondock’s Restaurant in WindMark Beach.

Not all businesses have fared well and the turmoil and transition in the banking world should be pointed out. Superior Bank, Coastal Community, and Bayside Savings were all taken over by the FDIC this year. Centennial Bank took over Coastal Community and Bayside. They also reached an agreement in November to purchase the struggling Vision Bank. Superior was taken over by a holding company out of Texas and merged with another bank that was taken over to form New Cadence. Capital City is the only bank still operating under the same ownership in the area that was here in 2005.

Despite all the hardships the local banks have faced, banks have the best appetite for lending that they have had in years. Mortgage rates are near 60 year lows, hovering around 4% for a 30 year mortgage. Banks seem most willing to loan to primary and 2nd home buyers looking to purchase single family homes and townhouses. There is some financing available for condos and vacant lots, but the terms aren’t nearly as attractive for these properties as they are for the single family homes and townhouses. Appraisals are one of the biggest concerns I have in moving forward. Appraisals coming in lower than the agreed contract price is hindering more deals for buyers and sellers than anything else. This can be very frustrating for buyers and sellers. It’s not uncommon for a deal to be cancelled and then the next buyer agrees to pay the same amount as the first buyer and has no problem getting an appraisal at contract price.

New Year’s Eve on the Coast has been attracting more and more people each year as people enjoy celebrating at the local restaurants and bars in Gulf County in the Eastern time zone and then riding a trolley to Mexico Beach and celebrating again in the Central time zone. It’s a fun experience known as “Celebrate Safe, Celebrate Twice” that I recommend everyone giving a try.

One of my favorite local events is the Mexico Beach Gumbo Festival that will be held on February 18th. This event raises money for the 4th of July fireworks show. Our cooking team has won the gumbo division twice and Brunswick stew division in 2010. We look forward to competing and helping out again.

I want everybody to know that I’m here for you to help with any of your buying and selling needs. If you’re just curious about your property’s value or looking for a specific type property, just let me know. 2012 looks like another great year for buyers. There are still a number of bank owned properties that will have to be sold and many other sellers attempting short sales and pricing their properties very aggressively. 98 Real Estate Group works hard for all of our sellers, and we were able to successfully close over 50 of our listings in 2011. Please enjoy this wonderful time of year and don't hesitate to let me know if I can help with anything.

Cheers,

Zach Childs
Broker/Owner 98 Real Estate Group
Email: zach@mexicobeachsales.com
Cell: 850-819-0833
Fax: 888-382-9608
WWW.MEXICOBEACHSALES.COM
WWW.98RealEstateGroup.com

St. Joe Company Announces 98 Real Estate Group as the Chosen Windmark Beach Brokerage

2011-10-04T18:47:00.001-07:00

Good Summer - Mexico Beach to Cape San Blas Market Update‏

2011-08-25T13:16:00.000-07:00

It’s been a very active summer and I hope everyone was able to come down and enjoy some time in our wonderful area. The majority of business owners that I have talked to have had one of, if not, their best summers ever. I’ve heard over and over again from locals and visitors “I’ve never seen this many people at the beach”. As those of you that love this area know, we have a great place. Others are finding that out as I continue to work with a number of buyers that haven’t been to our area a year ago. Don’t worry that we have huge crowds, but we are slowly being discovered by more and more beach lovers. It’s reached that time of year that kids are back in school and many owners like to come down and enjoy September and October.

The real estate market continues to be full of buyers looking for good deals. 2011 is well on its way to having the highest number of closings out of any year since 2005. The coastal markets have been gaining momentum in regards to the number of closings steadily of the last 4 years. From January 1, 2008 to August 25, 2008, there had been 128 closings. For the same time period in 2009, there were 139 closings. Things have really heated up over the last two years with 223 closings from 1/1/10 to 8/25/10 and this year there have been 273 closings as of August 25th. These sold statistics are for the combined area from Mexico Beach to Cape San Blas/Indian Pass. As of August 25th, there are an additional 102 properties currently under contract. That’s the highest number of properties under contract that I can remember ever seeing. This link will show the 102 properties under contract. http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061181005

The Mexico Beach to Windmark market remains the most energetic market with 142 closings and the Cape San Blas to Indian Pass market has been steady with 91 closings as of August 25th. The majority of buyers still want to be close to the beach and the Port St. Joe market remains sluggish with only 40 sales. The vacation rental market in the beach areas had another good year that is helping to lead to additional sales. I sold a beach front home in July on the North End of the Cape was on track to do $100K this year in rental revenue. Some of the prices on potential rental properties are very attractive when looking at their rental returns. The stock market has been extremely volatile lately and I’ve gotten 3 new clients that have pulled money out of the stock market to invest in rental property.

Sales for 2011:

Port St. Joe (40) http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061181009

Cape San Blas/Indian Pass (91) http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061181008

Mexico Beach/St.Joe Beach/Windmark (142) http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061181010

Prices aren’t racing back up, but single family homes continue to do well and some have sold for 3-7% more than comparable homes sold for last year. Even some vacant lots have gotten in on the action in a few areas. Casuna is a subdivision in Mexico Beach about 2 blocks from the beach. The lots are all very comparable. In early June there were 6 on the market priced from $34,000 to $39,900. Recent closing prices over the last 18 months had been closer to the $25K mark and a number of buyers were hoping to get one for $20K at the end of summer. Other buyers decided to make offers and the first one closed on June 15th for $26,500. Then two more closed in early July for $27,000 and then $27,500. That got the other buyers excited and nervous about missing out and one closed on the 25th for $32,500 and another that went under contract in June closed for $26,000. I know those aren’t huge increases, but it’s moving the right direction and most importantly, reducing the inventory. Now there is only one lot on the market in Casuna and it’s priced at $39,900.

The reduction in properties on the market is really a good sign for the overall health of the market and for prices to start going back up. It’s also making it easier for aggressively priced listings to get activity with less competition. I know there are still lots of “for sale” signs when you ride around. However, there is significantly less than there were a few years ago. From Mexico Beach to WindMark, there were 621 listings on the market in August of 2007. There is now less than half that amount on the market with 302 active listings.

For me, it’s been a busy and fun summer. We had terrific year fishing for red snapper. I’ve also been scalloping for the first time in years and I’d forgotten how fun and easy it is. We were able to get a limit in less than an hour in only 3-4 feet of water. I recommend everybody giving this a try. It’s a hopping place down here in the summer with “First Fridays”, Pub Crawls, multiple fishing tournaments, 4th of July Celebrations, Scallop Festival, Aloha Festival, and lots more. This Saturday is the MBARA Kingfish Tournament that my dad is the director of with a captain’s party on Friday at the El Governor. I’ll be there filming the yearly tournament video and giving out door prizes. This tournament consistently draws the largest crowds and had 135 boats last year with the oil scare and 196 in 2009.

POJO Festival is a free concert in St. Joe Beach set for September 16th & 17th. There are some big bands booked including ALO, Honey Island Swamp Band, and The Sheepdogs that are on the cover of the Rolling Stones this month. This should be a great free event and here is the website: http://pojolivemusicfest.com

I haven’t just been having a lazy summer enjoying all of the fun activities and laying on the beach. I’ve had some fun, but also worked like crazy, which is a good thing. From June 1st to August 23rd, I’ve been the top agent on MLS and 98 Real Estate Group has been the #1 sales volume company on MLS from Mexico Beach to Cape San Blas. I had an especially great July and personally outsold all of the other companies in the area, except 98 Real Estate Group. The momentum that 98 has had in our first year has been tremendous and I’m very grateful for all of the support that we have had. Our success has been noticed and we are currently in talks for some very exciting new opportunities.

I’ve been asked quite a bit about what is being built on the West end of Port St. Joe on Hwy 98. It’s going to be a “market” Dollar General. According to this article less than 1% of the 9500 Dollar General Stores are market stores. The store is about twice the size of a regular Dollar General will carry fresh produce, dairy products, and meats. http://www.starfl.com/news/dollar-23452-general-twice.html I look forward to continuing to work with so many wonderful people. Please let me know if there is anything that I can with any of your buying or selling needs.

I recieved this rate update from Amber Lowry at Vision Bank minutes before hitting send and wanted include this info.

Conventional/ FHA & VA / USDA - RD (loan amounts $417k and less):

30yr conventional = 4.375%

15yr conventional = 3.625%

Have a great weekend,

Zach Childs
Broker/Owner 98 Real Estate Group
Email: zach@mexicobeachsales.com
Cell: 850-819-0833
Fax: 888-382-9608
WWW.MEXICOBEACHSALES.COM
WWW.98RealEstateGroup.com

2011-07-26T10:58:00.000-07:00

The 4th of July is upon us!! 2011 has been a positive year for the coastal area and that trend has continued with tons of activity during our peak season. More and more people are coming to visit and are falling in love with the area. Articles like this one from Yahoo Travel calling Mexico Beach : “A Great American Beach Town” and comparing it to towns like Santa Cruz and areas like The Virgin Islands continue to bring in a steady stream of new visitors that have never heard of our area. I'm working with a number of buyers right now that hadn't heard of this area 6 months ago.

The 4th of July always brings the largest crowds of people to our area. With tourism way up in 2011, I’m expecting to see one of, if not the largest crowds we’ve ever seen in the area. The Mexico Beach CDC always do a great job with their fireworks show on the night of the 4th and have big plans again. Port St. Joe also has a nice fireworks show each year and individuals put good shows on the Cape, Indian Pass, and St. Joe Beach. It’s a great day to be in the area that’s full of fun events for the whole family. This year’s festivities start off with the Sandy Shoes 5K at 7am CST. I haven’t been staying in great shape and there’s a 50/50 chance (at best) that I run in the race this year. There are events going on throughout the day and Mexico Beach will be having the kid’s fishing tournament in the canal again this year. Still, the #1 activity will be sitting on that soft white sand and enjoying the beaches.

The only downside to an extremely active real estate market is that I’m not fishing or diving much these days. Here’s a description of the properties I personally have under contract: A high end beachfront on the North Cape listed at $789,000, a beach front foreclosure on Indian Pass listed at $590,000, beach front duplex in Mexico Beach listed at $449,000, a gulf view home in St. Joe Beach, an Indian Pass lot, two gulf view lots in St. Joe Beach, a Casuna lot, and FOUR condos in Mexico Beach. 98 Real Estate Group has a total of 24 properties currently under contract. That’s hopping for this little area and I’m proud of the success of our hard working agents. We opened in February and are getting more property sold right now than any of our competition. There are a total of 75 properties under contract from Mexico Beach to Cape San Blas right now: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061092744

“Short sales” continue to have a number of the most attractive asking prices and can’t be ignored. They are usually everything but short and take months to work out, but the buyers often get great deals at the end of the day. Foreclosures are much easier to work with usually, but the better priced ones are getting multiple offers when they are listed. It’s certainly a myth that you can only get a good deal on a short sale or foreclosure. There have been 196 sales so far this year and only 77 have been foreclosures or short sales. Regular sellers know they have to price according to market conditions and often provide some of the best deals of the year. The best deals from Mexico Beach to Windmark were updated today on the TOP 25 and TOP 15 lots at http://www.mexicobeachsales.com/.

Here's link to show some of the best deals on houses from Port St. Joe to Cape San Blas: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061092761

Best Lot Deals from Port St. Joe to Cape San Blas: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061092770

This link will show the 70 closings that have occured since 5/1/11: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061092757

The interior subdivisions in the Mexico Beach/ St. Joe Beach/WindMark area have had a number of recent sales and there are a fair number of people looking to build. Casuna, Sunset Village, and WindMark have all had some life breathed into them this year and prices have started creeping up. In these subdivisions, the best deals have sold and others have been willing to pay a little more as they are more comfortable with others buying and starting to build.
Earlier this month, 3 of 98 Real Estate Group's agents participated in the Wounded Warrior Fishing Tournament. All of the wounded soldiers involved had a great time and so did we. This was a great event to be a part of. Below are a few pictures I took from our boat as we pulled out of Port St. Joe Marina.

Scallop season opened June 25th and there were tons of people out on the bay enjoying a wonderful day on the water. You will notice lots of extra activity in the Bay and on the Cape with people anxious to get out and snorkel around for some tasty scallops. This is really an easy and fun experience. Below is a picture taken by Debbie Hooper on opening day. I hope everyone has a wonderful and safe 4th of July.

Take Care,
Zach Childs
Broker/Owner- 98 Real Estate Group
Email: zach@mexicobeachsales.com
Cell: 850-819-0833 Fax: 888-382-9608
WWW.MEXICOBEACHSALES.COM
WWW.98RealEstateGroup.com

It's Summer and There's Lots to Do- Market Update‏

2011-05-27T07:01:00.000-07:00

Happy Memorial Day weekend,

Summer is here and so are the people that love to visit. The sense of optimism continues and we’ve added a number of nice amenities and new businesses since last year. We’re still your small and quiet coastal area, but it’s nice to see the additional activities and services available to those that visit the area. As more people visit and like the area, a percentage of them will buy and help raise prices. I’m showing around a number of people now that fell in love with the area during their first visit this Spring. Don’t worry, there aren’t any huge changes and Mexico Beach and Cape San Blas still don’t have red lights. There have been 157 sales this year which is keeping 2011 on pace to have 10%-15% more sales in 2011 than any any year since 2005. There are an additional 70 properties currently under contract. More good news for those wanting prices to go up is that inventory is being reduced at steady rate. Today, there are almost 200 less properties listed than there were a year ago and over 500 less than there were 3 years ago.

The new sidewalk that now takes you from one end of Mexico Beach to the other has been a great addition. I’d like to thank the city council for sticking to their plan and bringing this to the community despite all of the objections over this project. Everyone I’ve talked to loves it and first time visitors can’t believe it hasn’t always been here. The City of Port St. Joe constructed a very nice gazebo next to City Hall. The construction of a very well laid out kayak park/volleyball court/recreational area at Salinas Park and a new fire station is also complete at Cape San Blas. These are all great additions that are making this area more attractive and visitor friendly.

Two of the biggest additions of new businesses that you will notice are the new beach version of Dollar General in St. Joe Beach and the relocated/expansion of CVS in Port St. Joe.

What are the best deals right now? As we are running out of foreclosures, more and more sellers are trying short sales and pricing their property at great prices. They are called “short” because the sellers owe more than their asking price and their proceeds will fall short of what their bank is owed. Sometimes the seller is required to pay part of the difference and sometimes the bank will take the whole loss. If a bank feels that a foreclosure is the only other option, they are usually more willing to work with a seller on a short sale. Short sales can be very tricky and often frustrating for both the buyer and seller. I’ve got a number of buyers that won’t look at short sales because of all the obstacles associated with them and how long it usually takes to get answers. I’ve got a number of other buyers that have jumped through all of the hoops and ended up purchasing awesome deals.

Once a seller decides to try a short sale, they really need an offer from a qualified buyer to see if the bank will work with them or not. One of my former #1 picks on http://www.mexicobeachsales.com/ was a short sale right across from the dedicated beach that was reduced from $429,000 to $220,000. This was not my listing and $220,000 was an awesome price. I had multiple people offering the asking price and more. There were near 10 offers in that I knew of and the seller ended up countering everyone way over asking price. It ended up closing 103 days later for $107,000 over the asking price. That was still a very good price. The banks that are working with the sellers will order an appraisal during the short sale process. They will give the buyers a good deal, but will not sale for substantially less than the current appraised value. I’ve never seen them take more that 15% less than the appraised value. That’s about as much as I’ve seen a foreclosure sell for under asking price as well. I wouldn’t say to pass on a short sale if it’s a great deal, just be prepared for some extra waiting and uncertainty.

MexicoBeachSales.com was just updated with the best deals for the Mexico Beach to WindMark Area and I’ve now starting adding the top 5 best deals in Port St. Joe on the Top 25. Remember that you can always find all of the foreclosures and short sales on http://www.mexicobeachsales.com/ including a page for my other site, http://www.capesanblasforeclosures.com/. Here are some of the other best deals for Port St. Joe and Cape San Blas.

Cape San Blas and Port St. Joe Residential Deals: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061036624

Top Cape San Blas and Port St. Joe lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061036628

I’m excited about all of the new businesses that have opened this year and the others that have upgraded to larger locations. Two restaurants, not pictured, are also scheduled to open very soon. It’s nice to see the commercial market getting active and healthier again. Some of the new businesses opened include: a sunset tour boat, women’s clothing/bathing suit store, a dive store, golf cart sales, bike rentals, interior decorating, a shaved ice/hot dog stand, and an ice cream/frozen yogurt store. It will be nice to have all of these services and products available and give the area a more “beachy” feel.

98 Real Estate Group that opened this year is rolling along well and we’ve had 32 closings as of May 24th. http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=2061034377 I’ve closed 17 personally and have 7 more under contract. The “Ling Ding Fishing Tournament” that we hosted in April ended up with 61 boats. With the proceeds earned, the tournament was able to donate $1,500 to the Mexico Beach Artificial Reef Association and have a reef named after this year’s tournament. We also donated $1,000 to the Forgotten Coast Warrior Weekend. This event is associated with another great fishing tournament called The Bluewater Outrigger Charity Classic. I’m very proud that we’ve teamed with Big Fish Construction and will be one of 10 teams taking a veteran that was wounded in Afghanistan or Iraq fishing out for a special tournament for the veterans on June 3rd. The whole weekend should be a lot of fun with a free concert featuring Julie Roberts on Saturday night. Below is a 70 plus lb wahoo caught by one of the veterans that had lost both legs in combat.

I’m here to help however I can. If you’re curious about what your property is worth or are thinking about selling, now is the time, as summer is upon us. If you’re looking to buy, I need to know what you’re looking for so that I can help you find it. This link will show you some remarks that people I have worked with in the past had about their experiences working with me.

Take care,

Zach Childs
Broker/Owner 98 Real Estate Group
Email: zach@mexicobeachsales.com
Cell: 850-819-0833
Fax: 888-382-9608
WWW.MEXICOBEACHSALES.COM
http://www.98realestategroup.com/

Late Spring Market Update-Mexico Beach to Cape San Blas-98

2011-05-04T13:07:00.000-07:00

Things are going well at your favorite Coastal area. There’s a sense of optimism everywhere and there were some great crowds down enjoying the beach for Spring Break. I heard over and over again on the weekends from different business owners that it felt like the 4th of July did 10 years ago. I’ve seen rental companies cut their summer advertising, not because they are doing poorly, but because everything is almost completely booked. There are more and more people wanting to come to the area this year. We have had some new businesses open this year and others are under construction right now. The overwhelming majority of business owners I talk to tell me that they are up this year and that this may be their best year ever.

Real estate sales are definitely up as well. There have been 116 sales so far this year which puts us on pace to have the most closings of any year since 2005. Mexico Beach/St. Joe Beach is having the most activity with 51 closings while Cape San Blas/ Indian Pass has had 32 sales and Port St. Joe is at 23 for the year. There’s also an astounding 78 properties under contract!! The higher end market remains a little slow. I have the 2 highest residential sales ($400,000) for the Mexico Beach/St. Joe Beach area and also have the highest sale in the Port St. Joe area for the year at only $190,000. There has been a little more higher end activity for the Cape San Blas market with 6 sales of $400,000 or higher with the highest sale year to date at $525,000.

98 Real Estate Group started back the Ling Ding fishing tournament that was an old time favorite but hasn’t been held since the 80’s. We hoped to get 30 boats entered our first year and we currently have 61 boats. We have had wonderful response and participation from the community. Our finale will be held at the Mexico Beach Marina this Saturday afternoon. There will be live music and we will be smoking a pig and providing free BBQ and refreshments. Feel free to stop by and enjoy the company and see some big cobia weighed in. This link will show you all the pictures:

My parents are both retired teachers. They sold their home in Bainbridge Georgia last month and are now full time residents of Mexico Beach. They sold a smaller house here late last year and want to consolidate and have one large home at the beach. They are planning on buying a nice lot and build the house my mother has always wanted on it. They are looking for a lot in a nice area within easy walking distance of the beach that’s at least 70’ wide and surrounded by other single family homes. I took my dad around and showed him 4 lots that stood out as good deals last month. All 4 have sold since then or are under contract.

I’m telling their story to help to show that it is hard to be passively looking for a place at the beach and expect the properties you’ve looked at to still be on the market when you decide to purchase. He really liked 2 of the lots and now we can’t find anything at those prices that compare. It could realistically take us a few months now and they may still have to pay more. There are a few exceptions and some deals stay on a few weeks longer than expected, but most deals are moving pretty quickly. If you seriously want a place for Summer, you need to be a committed buyer that can act quickly. If I can help you in any way, please let me know and I need to know what you’re looking for. The best way for me to be able to help you is to spend some time looking around one day at properties and by listening to what you like and don’t like.

I updated the Top 25 today at http://www.mexicobeachsales.com/ and below are the deals that stand out for Port St. Joe and Cape San Blas.
Port St. Joe Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206990970

Cape San Blas Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206990971

Cape San Blas and Port St. Joe Lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206992403

If you're looking to sell, 98 Real Estate Group is leading the way getting properties sold. We have been extremely successful this year and are advertising and marketing extensively. We currently have 13 properties under contract and are in negotiations on numerous other properties. There are less people here right now, but many of them are negotiating on property that they saw over Spring Break. I expect May to remain steady and then have a very busy Summer. I've put a gulf front duplex, gulf view lot, gulf front condo, and and interior townhouse under contract in the last week and have closed on 8 other properties since March 1st.

I’ve partnered with a few friends and have purchased a home on the beach in Beacon Hill that sits across 2 beach front lots. We will be moving the house about 3 miles to a lot on 35th St. in Mexico Beach. There are not many gulf front lots left. There’s usually only one or two that sell each year as most owners want to hold on to them or either sell them at 2005 prices. The least expensive gulf front lot from St. Joe Beach to Mexico Beach is currently $449,000. These two lots will be available at $299,000 each. With building prices down, you could be in a very nice brand new beach front home for under $600,000. There are some good deals on existing gulf front homes as well, here is a link to see all of the gulf front single family homes on the market now.

Superior Bank was taken over by the FDIC on April 15th. Houston based Community Bancorp was set up to take them over and they never missed a beat and were open for business Monday morning. They will now operate as Superior N.A. Every single employee I talked to seems optimistic that this has happened and that they now have a much healthier bank. One of them told me they went from the worst capitalized bank in Florida to the best overnight. Rates are still looking good and a rate sheet I saw this week had 30 year conventional mortgages at 4.875% and 15 years at 4.375%. Vacant land loans aren’t as attractive, but more banks are starting to lend on land and there are many more options than there were 2 years ago.

I hope that you get to come and enjoy the beach soon.

Take care,
Zach Childs
Cell: 850-819-0833
Broker/Owner 98 Real Estate Group
http://www.98realestategroup.com/
http://www.mexicobeachsales.com/

Spring Market Update- 98 Real Estate Group

2011-03-30T04:31:00.000-07:00

There have been some big changes since the January newsletter. To start with, the weather has gone from freezing to absolutely beautiful. There have been some nice crowds here enjoying the beach. I’ve heard multiple business owners make the comment that on a few of the weekends it’s looked like the 4th of July did 10 years ago. That’s a very good sign for “the season” and every rental company I’ve talked to has told me it’s looking like a great year for them. I hope you have been able to come and enjoy some of the awesome weather and beautiful beaches. The fish have shown up as well and lots of Spanish mackerel has been caught along with some huge cobia.

98 Real Estate Group is up and running and is by far more than a small startup company. I’d like to thank everyone that has helped us get off to such a great start. After being open barely a month, we have 82 properties (http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206935486) either listed or under contract totaling over $17,000,000 in sales and 6 of the hardest working agents in the area with offices in Mexico Beach and Cape San Blas. We aren’t just listing property; last week we had 5 closings. The locations varied from a canal front home in Mexico Beach, a first tier lot on Indian Pass, a home in Port St. Joe on Long Avenue, and two lots in Park Point on Cape San Blas. Just yesterday, we closed a WindMark Beach waterfront lot yesterday so it’s clear that our momentum is strong. We have another 10 properties under contract scheduled to close by April 15th! I will be surprised if we don’t finish as the top company for the area in 2011, currently we’re #2. I’ve continued to be very fortunate and able to work with a number of great buyers and sellers. I love my job due to the people I work with are wonderful people and fun to get to know. I had the 2 highest sales from Mexico Beach to WindMark in 2010 and currently have the 2 highest sales in 2011; both of which were listed with 98 Real Estate Group. Come by and see us at one of our office locations, below is our Mexico Beach Office and a picture from last week of the beach.

It would be easier to tell you where we aren’t advertising than where we are. We launched a great website www.98RealEstateGroup.com that features the easiest search features available with the ability to see the different beach camera views in Mexico Beach. You can learn even more about us and find out about some of the top deals first by checking us out on facebook. We are also the proud sponsors of the 2011 Ling Ding. This is a fishing tournament that hasn’t been held in years that was a favorite time for many people. The fishing is open every Friday, Saturday, and Sunday in April and should be a lot of fun. There are a number of people and groups that have helped to bring the tournament back. It should be a lot of fun, starting with a kickoff party at Mango Marley’s on April 2nd, another get together at Reagan’s Oyster Bar on the 9th, and a final celebration on the last day of the weigh-in on April 30th at Marquardt’s/Mexico Beach Marina with free BBQ, smoked fish, and refreshments. I’m on the tournament committee so feel free to contact me for details and you can see more at our website and The Ling Ding’s Facebook page.
How’s the market? It’s busy. Remember more property sold in 2010 than any year since 2005 and that with the market stalling for a few months during the huge scare related to the oil spill. 2011 has started off even busier that 2010. There have been 86 sales this year vs. 67 for the same time period last year- http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206939322 One thing is certain, there are a lot of buyers looking for a great deal on houses/townhouses/condos. We’re really running low on “good” deals.

I had an investor come in this week wanting a list of all the single family houses/townhouses/condos etc that have been foreclosed on and are on the Market from Mexico Beach to WindMark Beach. It was a short list of 6 with nothing standing out as a steal. Then he wanted all the foreclosed residences on the market in Highland View, Port St. Joe, Oak Grove, and Jones Homestead. That list totaled only 4 listings. We next viewed the Cape San Blas/Indian Pass market which only resulted in 7 choices. Here’s a link to see them all: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206939294

I’m hearing more and more and starting to think myself that the majority of the best deals at least for single family homes may be in the past. The one thing that you can still find a good deal on pretty easily is an interior vacant lot. There are 55 vacant lots listed as foreclosures and many are selling for 10%-20% of what they were purchased for during the height of the market. There are also a number of good deals on non-foreclosures. It’s a very good time to look at vacant property and there are even some banks lending on lots again with only 25% down. Gulf front and gulf view foreclosures and short sales aren’t nearly as common though as the interior lots a few blocks from the beach. I can certainly find you a good deal on a house, but the average time it’s taking to find a buyer a deal they are happy with is getting to be over 3 months.

What are the best deals on the market? For the area from Mexico Beach to WindMark, check out MexicoBeachSales.com. I put 20 new listings on for the Top 25 and Top 15 Lots in the past 2 days. Here’s what’s standing out for Port St. Joe and Cape San Blas. PSJ Deals: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206939304 Cape and Indian Pass Deals: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206939306

Do I have any concerns? Yes, appraisals have become a major problem. There are new appraisal guidelines and the banks can’t choose the specific appraiser that they use anymore. The local banks seem to only use local appraisers and these guys are very knowledgeable in the area and know what they are doing. The big problem is occurring when people are using banks from outside of the area. These banks are calling an appraisal management company that then assigns them an appraiser. The appraiser is usually someone that no local Realtor has heard of and may be from Panama City or Tallahassee. It seems they do their appraisal from the internet and they don’t seem to understand coastal property in this area very well. Recently, I had one appraisal report where there was only a $10,000 adjustment for land value when they used a sold property almost a mile from the beach and the one being purchased was 1 house off the beach. To give you an idea of the coastal knowledge these out of town appraisers posses, one thought Mexico Beach was in Gulf County. If you do need an appraisal and can choose who to use, Matt Terry, owner of North Florida Appraisal Group is great to work with. His cell is 850-227-6478.

It’s looking like another great weekend and I hope I’ll have enough free time to go and enjoy the Air Show at Tyndall. I hope that you are able to come and enjoy this beautiful place. I also hope FSU can win their game tonight. Here’s a couple pictures I got at the last air show.

Have a great weekend,
Zach Childs
Broker/Owner- 98 Real Estate Group
Cell: 850-819-0833

Fortune 500- CNN Money Article about JOE- Windmark

2011-02-08T10:12:00.000-08:00

This is an interested article about The St. Joe Company. One of their largest developments is Windmark Beach. There's a pretty cool slideshow about Windmark if you follow this link: http://finance.fortune.cnn.com/2011/02/07/berkowitz-throws-the-gauntlet-in-the-battle-over-st-joe/

Berkowitz throws the gauntlet in the battle over St. Joe
Posted by Scott Cendrowski, reporter
February 7, 2011 12:38 pm

Bruce Berkowitz is proposing to become chairman of the Florida developer. That could spell trouble for short seller David Einhorn.

A St. Joe real estate development
Last week, the investor Bruce Berkowitz of Fairholme Capital was onstage at Columbia University's annual Investment Management Conference in New York when he got a question about St. Joe Company (JOE), one of the most debated stocks among certain moneyed circles. Ever since noted short seller David Einhorn publicly bashed the small Florida real estate developer last fall, the press and financial blogosphere have gleefully pitted Berkowitz, St. Joe's largest shareholder, against Einhorn in a battle of super investors.

So it didn't take long before someone in the Columbia audience asked Berkowitz if Einhorn might be wrong. "I don't have a lot to disagree with David about," Berkowitz answered, saying he was a long-term shareholder and since joining the St. Joe board earlier this year, he's been doing everything he can to boost St. Joe's value. The moderator quipped, "Assuming you guys have any real power on the board."

If he didn't before, Berkowitz may be about to get a lot more. According to a CNBC.com report that was confirmed today by Berkowitz, the fund manager is proposing to overhaul St. Joe's board. It's the latest in a string of moves to reverse three years of losses at the sleepy Florida company.
Berkowitz would become chairman of St. Joe under his proposal. His partner Charles Fernandez would assume the vice chairman role. In addition, Fairholme recruited Howard Frank, COO of Carnival Corporation (CCL), and Florida Fish and Wildlife Conservation Commission Chairman Rodney Barreto to join the board. Berkowitz expects to discuss the proposal tomorrow at St. Joe's scheduled board meeting. A St. Joe spokesman did not immediately return a call Monday.

Berkowitz and Fernandez have been planning changes for weeks and said the St. Joe board had been notified before the news leaked Sunday. The report sent St. Joe shares soaring Monday, up as much as 11% to $30.

The proposed shakeup raises the question, what's in St. Joe's future? It's got 576,000 acres of land in Florida's panhandle, a large chunk of which is located within 15 miles of the coast, but it's bled money for the last three years after residential developments stalled during the housing bust. Its balance sheet is debt-free, but the company isn't generating cash or profits. Berkowitz has said it's "just sort of dead in the water."

Among the possibilities, Berkowitz says: "Outsourcing the entire operations of the company, merging with another company, being acquired by another company. Acquiring another company."

The "possibilities are vast. But before you can do any of this, the first thing you have to do is stop the bleeding," he says.

Berkowitz declined to answer specific questions about St. Joe's future projects, citing his role as a director. However, he's said in the past that outside developers could help rework St. Joe land. And he's still bullish on the stock. He bought St. Joe shares valuing its land between $3,000 and $4,000 an acre. He thinks some of its beachfront properties will fetch $1 million an acre.

Interestingly, Berkowitz and Fernandez won't accept compensation for their work on St. Joe's board, nor will they accept reimbursement for flying from Miami to St. Joe's west Florida headquarters, until the company is profitable.

Coming up short

As investors cheered the news, those selling St. Joe stock short took a hit. Einhorn, known for his deep research and patience after successfully betting against Allied Capital and Lehman Brothers, among others, in Greenlight Capital's 15-year history, is fighting some heavy hitters in St. Joe.

Berkowitz's $22 billion Fairholme Capital owns nearly 30% of the company, and six other institutional investors, including BlackRock (BLK) and T. Rowe Price (TROW), control nearly 40% of its shares. If the board rejects Berkowitz's proposal to become chairman tomorrow, it's a safe bet that the proposal would go to a shareholder vote. And with Berkowitz's investment track record and reputation, it's also likely that other large St. Joe shareholders would side with his proposal.

Another strike against Einhorn: When he gave his 139-slide presentation on St. Joe in October, arguing that its stock should trade between $7 to $10 instead of $25, Berkowitz was restricted by a standstill agreement he signed with the company. It prevented him from adding to his stake, or from voting Fairholme's full share position in certain situations, including proposals to sell the company.

Just to show how serious Berkowitz is about St. Joe, which is a relatively small position in Fairholme's $22 billion portfolio, take a look at the slideshow below. In October he sent a photographer to tour St. Joe's properties after Einhorn's speech featured several unsightly photos of St. Joe developments. Even though Berkowitz had toured the properties before, he wanted to see what St. Joe's residential properties looked like compared to Einhorn's photos. See for yourself. (And to be clear: all the slides and commentary were compiled by the photographer, not Berkowitz.) Einhorn did not respond to a request for comment.

The news might be heating up. St. Joe's board is meeting tomorrow, and with the news leaking out that Berkowitz wants to replace almost half them, emotions could fly. Another reason to keep up with one of the hottest stocks around.

Happy New Year-Mexico Beach to Cape San Blas Market Update & More

2011-01-13T09:29:00.001-08:00

Happy New Year!
I hope everyone had a wonderful 2010 and is looking forward to a joyous and prosperous 2011. I’d like to thank everyone for another great year. I was able to help get over 30 pieces of property sold and invite you to click here to see what some of my customers had to say about their experiences. I work very hard to give the best service possible. I appreciate the opportunity to work together and have successful relationships with so many of you. I sold a wide range of different properties including the 2 highest sales and the lowest sale in the Mexico Beach/St. Joe Beach Area. I also sold more vacant lots than anyone for the Cape San Blas Area. I enjoy what I do and am especially excited about 2011. I’ve worked with a number of the top companies over the last 6 years and have big plans to open a new company next month. 98 Real Estate Group will be able to offer the highest level of customer service and professionalism. Our agents have been top producers from Mexico Beach to Cape San Blas for years and provide unmatched hands on experience and knowledge of the local market.

I’ve decided to send out an update by answering a few of the questions that I am most frequently asked. Hopefully, some of this information is interesting and helpful to you.

The #1 most asked question is, what are prices doing? It depends on what type of property. I’ve seen some reports out of Panama City saying that prices were up 1% last year. I don’t know if our overall market went up or not. It is clear though that single family homes are doing much better than anything else. Townhouses aren’t far behind holding their values. The prices that did fall last year were condos and residential lots which both sold for new lows in most areas. During the boom there were hundreds of vacant lots and condos that hit the market and were purchased at peak prices. The combination of these vacant lots and condos going into foreclosure combined with the very limited financing that is available for these, limits the number of buyers and causes prices to fall. There are going to be and are some awesome prices on both condos and vacant lots. 2011 might end of up being the year of the condo in Mexico Beach due to banks and struggling developers holding so many units that are finally liquidated.

The 2nd most asked question I get from people looking at property is, what are the taxes, insurance, and HOA fees? This obviously depends on the property, but taxes and insurance have come way down since 2005. A good “guestimate” on what to expect to pay on taxes is 1.2% per year of the purchase price/value. Insurance is getting very reasonable, especially for anything built after 2001, which means it’s built to current building codes. I’m listing a single family home in Windmark Beach on Monday that is paying less than $1,200/year. Remember when it comes to flood zones that X is by far the best and will have the least expensive insurance. HOA fees average $1100/quarter for 2BR condos and usually include insurance, management, trash, water, sewer, and cable. It’s much less for townhouses, but the owners pay individually for the above mentioned items.

Is anything selling? Yes, more property sold in 2010 than any other year since 2005. I’d mentioned in previous newsletters that despite the oil spill threat, 2010 still looked like it would have the most sales since 2005, and it did. 392 properties sold in Gulf County and Mexico Beach in 2010 which is 79 more properties than have sold in any of the last five years.
Mexico Beach/St. Joe Beach/Windmark- 168 Sales
Cape San Blas and Indian Pass- 112 Sales
Port St. Joe-64 Sales
North Gulf County- 48 Sales

How many sales were either short sales or foreclosures? 36% or 143 out of the 392 sales in 2010 were listed as either short sales or foreclosures.

How can I see the best deals on the market? Check the recently updated Top 25 on www.mexicobeachsales.com

Where do people want to buy? We still have a steady stream of buyers wanting second homes, future retirement homes, or investment properties. They key is that these people want to be near the beach. A good rule is that people are buying where the tourists/vacationers want to be. There is a direct correlation between the areas with the whitest beaches and prettiest water to the highest number of sales.
What are the most common properties people are looking to buy in the Mexico Beach/St. Joe Beach Area? There are three types of property that the majority of people contact me to help them find. Beachfront is always close to the top of the list. These properties are most desired and still bring a significant amount more than gulf view and interior properties. Believe it or not, I get more calls from people looking for a lot to put an RV on than anything else. I’m not alone in this and most colleagues say the same. (Mexico Beach does not allow RV’s.) The other popular property type that a lot of people are looking for is a really good deal on a condo or townhouse close to the beach that they can use and/or rent out. Next on the list are gulf view single family homes with rental potential. Close to that are interior single family homes where you can get a lot of bang for your buck. It seems like the least amount of people are looking for interior lots in subdivisions. The majority of buyers these days don’t like the HOA fees and usually more expensive building restrictions. You can find the biggest discount on these, and I’ve sold lots that once went for $250,000 for less than $20,000.

What’s selling on Cape San Blas? There were a total of 112 sales. For the first time that I can remember, there were more vacant lots sold (61) than residences (50). I’m not surprised at this as there were and are some huge discounts on vacant lots on The Cape. There were many lots offered as foreclose/short sales, and buyers couldn’t resist the deals. I led the way for this area on MLS, listing or selling 14 vacant lots. Very attractive listing prices often attracted multiple buyers and raised selling prices. 5 of my 14 sales sold for over asking price. 38 of the 50 residential sales were single family homes. The high sale for the year was a nice gulf front home in Jubilation that brought $950,000. The lone commercial sale was “The Trading Post” which brought $599,000. The North End of the Cape remained by far the most popular area with buyers purchasing 69 properties . The next most popular area was CR-30 with 16 sales. Indian Pass and Cape San Blas South only recorded 11 sales each. There are plenty of buyers waiting for deals on the North End, but it’s much less of a frenzy for the other areas.

What’s selling in Port St. Joe? The St. Joe or “town” market remains slower than the beach markets. Out of 64 sales, 21 were vacant lots, and only 2 were commercial sales. Not one residential lot sold for over $60,000, and most sold for $30,000 or less. 38 out of 41 residences that sold were single family homes. 35 of the 41 sold for $200,000 or less. The highest sale price of the year in PSJ was $350,000.

When should I place my property on the market? The highest number of sales take place during the spring and summer. There are lots of buyers who plan to look at property while they are here on vacation. It’s time to get your property ready and on the market. 98 Real Estate Group is going to be doing about 3 times the advertising I’ve done in years past. I want to get our name out there and help us off to a great start. If you want a lot of exposure for your listing, list it with 98 Real Estate Group. Whether you’re looking to sell now or just curious about your current value, I’m here to help.

Are there many foreclosures left? That answer varies depending on the area and property type you’re asking about. It seems that areas where values are down the most have the most potential for other owners to go into foreclosure. Many are making strategic defaults when they watch banks sell properties almost identical to theirs for as little as 10%-30% of what they owe. I monitor services that give me a heads up on foreclosures usually 3-6 months before they are actually foreclosed on. I’d like to think the foreclosures are behind us, but there will be a significant number in 2011. There are certainly areas that are more stable than others. There has still only been one single family gulf front home from Mexico Beach to Windmark Beach that has been foreclosed on in the last 4 years.

What’s going on with the fishing? The big change this year is that grouper season has been shut down for at least 6 months. 98 Real Estate Group is proud to announce that we are starting back a cobia tournament this year much like the once beloved "Ling Ding". Fishing will be open for the tournament every Friday, Saturday, and Sunday from April 1st to the 29th. An award’s party will follow on the 30th. It’s only $150 per boat to enter with an unlimited # of anglers allowed. Weekly winners will be paid along with $2,000 for the biggest fish winner. There’s also a bonus $500 Spanish mackerel division. Feel free to contact me for more information. Halfhitch Tackle and Marquardt’s Marina will both have registration forms and are our official weigh stations.

Did you ever get any oil? Thankfully, there was never any oil that hit our beaches. Are some of these crazy stories about BP claims true? Yes, I have heard of multiple waiters that have received over $100,000 and other small businesses that have received much more than that. Unfortunately, the only profession with a maximum claim amount is real estate sales, with a cap of $12,000. Not everyone is being paid and identical claims from workers from the same places are being denied while others are paid. One reason I am mentioning this is for those of you with rental properties. There's no cap on rental income losses and I've seen some big checks go out to owners that were effected and could document cancellations and/or reduced GRI. I hope the oil spill is behind us, and that those that are paid make good use of the money.

I'm thinking about renting my property this year, who should I use? That depends on your goals and what type of property you would like to rent. My friends at No Worries Vacation Rentals specialize in maximizing rental income for their owners. They produced some great results last year. For example, one home I'm helping a nice couple purchase this week is listed at $425,000, and bringing in over $60,000/year. No Worries handles a limited number of properties and markets them heavily. I'd especially consider them if you are beach front or have a pool.

2011 will offer buyer’s incredible opportunities with some selling prices at over 10 year lows. There are plenty of buyers out there for those sellers willing sell at market prices. It's awful cold right now, but the warm days of relaxing on the beach will be here before you know it. The Gumbo Festival is just around the corner and my team is the defending champion of both the gumbo and Brunswick stew divisions. I hope to see you there and please remember that I am hear to help you. Please feel welcome to drop by my office located in The Villas next to Marquardt's Marina and just past the pier anytime.

Best Wishes,

Zach Childs
Broker
850-819-0833

Fall Market Update

2010-11-02T10:14:00.000-07:00

The weather lately has been absolutely beautiful. The air feels great outside, and it makes sense again why so many owners block off their homes from the rental market and come and enjoy them for themselves in October. We still haven’t had any oil, and it looks like the Gulf Coast is going to be just fine. Come on down and enjoy it for yourself.

There hasn’t been a huge flood of buyers back in the market now that the oil threat is moving on, but there has been a steady flow. I currently have 7 properties under contract, which is the most I’ve had at any one time since before the oil threat began. There are a total of 70 properties under contract, which is another solid number. There don't seem to be any serious concerns about oil that are still keeping buyers from acting.

Everything points to 2010 still having the most number of properties sell since 2005. The majority of prices haven’t started going back up, but the discounts have remained enough to get buyers to purchase. It's also the first time in years that buying is cheaper than renting in some situations. Many sales have resulted when banks and other sellers have put prices out there so low that people just can’t pass them up. I have 2 listings under contract now that received multiple offers before going under contract. I have also had 2 buyers in the last 10 days that made offers on properties that received multiple offers and our offers were not the highest and best. My point here is to illustrate that the best deals are getting significant interest.

More good news is that we are having a bonus red snapper season this fall. The season will include Fridays, Saturdays and Sundays beginning Oct. 1 and extending for eight consecutive weekends through Sunday, Nov. 21. That gives fishermen an extra 24 days to enjoy Gulf red snapper fishing at a time when the weather is usually very nice and on weekends when most people are able to take off from work. The first two weekends of this season brought down a nice extra crowd of fisherman and visitors. It seems everybody is catching a limit of good red snapper except me. I’ve been busy the past few weekends working with interested buyers looking around for a deal of their own.

One of my favorite events in Mexico Beach is The Art and Wine Festival. This event is being held Saturday, October 16th, at The Driftwood Inn. The event will feature local seafood, fine wines, live auction, musical entertainment, and plenty of amazing artwork.

# of Sales 2009 vs 2010

Last year from 1/1/09-10/6/2009- 206 Sales
This year from 1/1/09-10/6/2010- 302 Sales

Remember, more property sold in 2009 than any year since 2005, so there is a significant amount of buying going on in 2010. Around ½ of the sales remain either short sales or foreclosures. The prices for homes have remained much steadier than the vacant lot market. There will be a sale every now and then for a home at a higher price and then one or two at a lower price, but it’s been pretty steady with the home prices lately. There are a good number of vacant lots selling, but it’s taking big discounts to attract the buyers, and we have seen some new lower selling prices for vacant property. The lower priced properties are continuing to get the attention this year while the gulf front and other higher end properties are selling very slowly. Out of over 300 sales this year, only 28 properties have sold for more than $300,000 and only 9 have sold for more than $500,000. A big reason for this is obviously that prices are down so much that many properties that were once selling for over $500K are now selling for well under $300K. There have been many great deals and it's unbelievable how cheap some of the vacant lots are selling for these days.

Financing rates remain incredible. Thanks to Amber Lowry (850-227-4492) at Vision Bank for helping me this week with a rate update. I’ll also add that for mortgages on primary homes, there are options available with 0% down and other programs that only require 10% down. For a second home, plan to put down at least 20%. Investment loans and vacant lot loans remain much more difficult to acquire and don't have near as attractive rates. 30yr loans are as low as 4.25% and there are 15yr products that are as low as 3.625%. With rates that low, if you purchased a $200,000 second home with 20% down and got a 30 yr mortgage at 4.375%, your principal and interest payment is $798/month. Not bad. There is an easy to use loan calculator on my website if you would like to figure up payments for any loan scenarios.

I have been updating the Top 25 on MEXICOBEACHSALES.COM at least twice a week and have added a section with the best deals on The Cape. Below are some of my favorite deals right now. There are good deals not featured on our MLS which can’t be included on the links below. You can find those at MEXICOBEACHSALES.COM. Still included on the site is all listed foreclosures/shortsales, recent sales, and other interesting information.

Best Deals on the Market:
Mexico Beach/St. Joe Beach/Windmark
Vacant lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206725496
Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206725499

Cape San Blas/Indian Pass
Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206725503
Vacant Lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206726656

Port St. Joe
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206726660

Please let me know if I can assist with any of your buying or selling needs.

Take care,

Zach Childs
Broker-Port St. Joe Realty
Cell: 850-819-0833

2010-08-27T07:33:00.000-07:00

Life on the Gulf Coast is starting to return to normal. The fear we had for months that oil could ruin the area for years has greatly subsided. The fishing waters off this area have all been opened, and the MBARA Kingfish Tournament that my father directs will be taking place as usual this weekend. Last year brought just under 200 boats, and we hope to have another big crowd this year. I will be helping out and filming a TV show Friday night at the captain’s party at the El Governor. I hope to see you there and good luck fishing. My team is currently 9th in the first annual Panhandle Kingfish Slam, and we’re going to need a whole bunch of luck to make up that many spots in the final tournament. The great news is that we were able to have all of the planned fishing tournaments this year. Most of us thought the first tournament would be the last of the year and possibly for years to come, as the media scared us to death with their talk of all the devastation that the oil would bring. You can read all about the tournament, fishing waters, tournament standings, reef sites, and more from the Mexico Beach Artificial Reef Association which has raised over $1,000,000 at their redesigned website, http://www.mbara.org/.Below I'm with my Dad and a 30# king.

There have been a good number of people looking at property over the last month. I would say that I’ve shown as many people around this August as I did last year. We are starting to get back into the market where the best deals are going quickly, but it’s taking most buyers a few months to find something that they are happy with within their price range. I personally dropped a contract on a lot I was buying in early June when the seller offered to let me out because of the oil threat. Those were some very uncertain months. That lot actually closed a few weeks ago for more than I had it under contract for. I am confident things are going to be okay and did buy a different property a few weeks ago. The buying slowed down over the last few months with the fear of oil, but it didn’t stop.

Many buyers have the impression that prices are way down since the oil scare, but this is not the case. There have been some slight reductions, but nothing drastic happened to prices because of the oil. It did keep a number of properties from getting offers this summer, and this may lead to further reductions in prices this fall. I would say the number of closings over the last 4 months is down 50-70% from where it would have been without the oil threat. In my last newsletter I tried to stress what a busy summer it looked like it was going to be with so many buyers looking. Since so many buyers were looking to buy, even with most dropping out for a few months, there were more closings this summer than last summer.

# of closings from May 1st to August 24th (Gulf County and Mexico Beach)
2009: 94 closings http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206664012
2010: 118 closings http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206664015

The Scallop Festival on Aug. 6th–8th was great fun and brought a nice crowd. Since that event, Gulf County received $250,000 from BP that has to be spent directly on marketing and events with hopes of bringing people to the county before the end of the summer. Mexico Beach received additional funding, and we could have some great concerts and events coming up shortly. http://www.starfl.com/news/tourism-21429-county-money.html I don’t often mention politics, but many of you have asked about some of the things going on the last few months. Two Gulf County Commissioners that had been serving close to 20 years each were defeated Tuesday night by 2 newcomers promising to bring positive change to the area: http://www.starfl.com/news/county-21434-peters-traylor.html

School has started back, and our big crowds won’t be seen again this year with the exception of a few big weekends and happenings. There should be some great, exciting events with all of the BP money that must be spent to draw tourists in the next month or two. Heading into September I guess summer has been as good as it could be with the oil threat. Thank God nothing serious has come of the oil here, and I hope that everything will be completely normal by next spring. Meanwhile, it’s just about gridiron time. Good luck to everyone’s team, especially Florida State.

We did have one of our local banks get taken over on July 30th by the FDIC. I feel very sorry for the stockholders who lost money on this investment and especially sorry for anyone who lost their job. Coastal/Bayside Bank has been taken over by Centennial Bank out of Arkansas. They are open for business, and you can learn more at this website http://www.coastalcommunitybank.com/. This bank had a lot of hard working, good people, but they were very tied to the local real estate market, and we all know how much real estate values have declined. It has been rumored for 2 years that this takeover would happen. It’s a relief to many that it has happened, and everyone involved can move forward with the stronger bank that took them over.

There are 70 properties that are currently under contract. This number is higher than it would be if some of these short sales weren’t taking months to work out, but it does mean there are 70 buyers trying to close on a piece of property right now. 37 out of the 70 properties are listed as either being short sales or foreclosures. http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206664022 . I've had a very busy day since I wrote that paragraph on Wednesday. Today I've put 3 more of my listings under contract to bring the total number of under contract properties up to 73.

Proposed property tax notices started being mailed out this week. Most people’s assessments and tax bills are down from last year. I have mostly heard from people that they are pretty pleased with their reductions. Still, many are tired of paying these taxes. I’m getting calls from a few sellers that are ready to just sell and move on. The market may see a few good deals hit the market from sellers like these. This is a much more common thought on vacant lots vs. properties people are actually using. Below are two aerials recently taken over The Cape & Windmark Beach Town Center.

Be sure to check out the new listings at mexicobeachsales.com. I’m also listing 8 foreclosures for RBC in the coming days at some great prices. There have been some exceptional deals from the lowest priced listings on up. It’s also been almost 5 months since the last sale of a Gulf front single family home in Mexico Beach or St. Joe Beach. All of these gulf fronts are priced to sell. http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206665887 Below are other properties that are great opportunities. I have been updating the top 25 on Mexicobeachsales.com at least 3 times a week. Please also remember you can find all foreclosures and short sales at mexicobeachsales.com as well as mexicobeachforeclosures.com and capesanblasforeclosures.com. If you don’t see what you are looking for, please tell me what you want so that I can be looking for you.

Best Deals on the Market:

Mexico Beach

Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206665927

Vacant Lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206665928

Cape San Blas:

Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206665930

Vacant Lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206665964

Port St. Joe:

http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206664047

Take care and tight lines,

Zach ChildsBroker- Port St. Joe Realty

Cell: 850-819-0833

http://www.mexicobeachsales.com/

Market and Oil Update- Our Coast is Still Clear

2010-07-22T11:43:00.000-07:00

We have constantly talked and worried about the threat of oil for the last 3 months. We have claims offices and clean up workers everywhere, but thankfully, no oil. I think the news has scared us all and we’ve watched and waited but still have not had any confirmed oil arrive at Mexico Beach or any of the Gulf County beaches. Despite this, we battle the perception that there is oil on our beaches. The good news is that it looks like we are going to salvage a pretty good summer. The crowds are down a little, but it hasn’t been disastrous. I know one of the larger rental companies is on track to have their best year yet. These visitors aren’t buying real estate right now, but at least our restaurants, motels, and stores that depend so heavily on the summer season have been doing okay. We’ve even gotten a fair share of new vacationers who came from places where there was oil, and many are planning to come back. Many others vacationers and second home owners keep coming each chance they get just in case there is oil in the future. If you have plans to come to the beach right now, there doesn’t seem to be any reason to change those plans at least for the next several weeks. This is a local website that gives updates and shows a number of beach cameras showing the “Coast is Clear”.

Scallop season opened early this year and most people are finding all that they want. Fishing has been great, and it may be the best year I can remember. I love going fishing and have had some great trips. Below are a pictures from the last few weeks, including one of my dad and an 84# cubera snapper & my 43# wahoo.

How’s the market? It’s not dead, but it’s not the great summer it looked like we were going to have prior to the oil threat. Everything pointed to a ton of property selling this summer before the oil threat began. I think my situation gives a good representation of the current market. In May, I had roughly 15 buyers that were ready to purchase as soon as we could find the right property. 12 of the 15 adopted a “wait and see” attitude about what is going to happen with the oil. I’m getting some sales calls and new inquiries, but most people just want information and have no plans to purchase until the oil situation is resolved. There were so many buyers looking to purchase at the beginning of this summer that even with the majority on hold, there have been more closings this summer than last summer. Last year from May 1st to July 14th there were 56 closings. This year for the same time period, there have been 62 closings. That's amazing to me that the majority of buyers are on hold and we've still had more closings. There were going to be a lot of sales this summer if not for the oil. It’s most unfortunate for the sellers who looked like they would sell this summer without having to give further discounts. There’s still property selling, but the volume is not what it was in March and April when there were more and more buyers, and almost every good deal was getting multiple offers. Those of you who follow the market closely will be surprised at some of the deals that have not sold on my Top 25 at Mexicobeachsales.com.

The one positive effect from the oil threat on the market has been on long term rentals. BP has hired hundreds of workers to be here in case they need to clean up oil. These people need places to stay, and many have been paying very high rental rates. I have seen a number of places which normally rent for $1,200/month that are now renting for $3,000/month. (The renters do get all of their utilities included at this price.) The downside is that these workers must be allowed to cancel with just a 15 day cancellation notice because they need to move if the oil doesn’t get here or they are needed in other areas. I hope they all have to cancel their leases. On a very positive note, I’ve met a lot of these workers, and the majority are under the impression that it’s not going to get bad here.

What about these super low prices on Condos? There have been and are some new condos priced in the $50K range. They are located about ¼ mile from the beach in a development called Palmetto Plantation. It’s an unfortunate situation that’s a good example of a worst-case scenario in a condo/homeowner’s association. Most of the condo projects did certain things to save owners and developers money. One way they do this is to have one water meter with the city, and the water payment is included in HOA dues. This saves everybody. However, when an HOA lacks sufficient funds, this is a big problem. A number of owners weren’t paying their mortgages, much less their HOA dues. The HOA didn’t have the money then to pay the city for water. After months of failure to pay, the water was turned off by the city. Insurance was also combined and included in the HOA dues. I’m told this wasn’t being paid either. Since there was no water, the buildings were condemned because of fire codes. This project has had some new owners buy in and work out some items with the city. There are now two functioning buildings that do have water. It’s risky buying in these, but also maybe a great deal. These units are getting tons of interest by people who want a cheap place at the beach, but they can’t get loans on them. There is a good chance cash buyers will end up buying multiple units in this project and wait until they can get other paying owners to work together to resolve all of the issues.

Keep in mind that a bank will not give a mortgage on any project that is not in good standing. The Summerhouse project is right across from the beach in a good location with attractive, well-built units. There is a concern about this project failing next since the developer that owned about ½ the units filed bankruptcy. Prices have plummeted here, and there’s one 3 BR short sale now listed at $135,000. However, projects don’t always fail when it looks bad. Waterside Village was shaky a year ago and now looks very healthy with 24 units selling this year.
Rates on 30 and 15 year mortgages are near 50-year lows. Amber Lowry at Vision Bank told me this morning that she can do 30-year loans at 4.5% and 15-year loans at 4.125%. Even if you’re not looking to buy, it is a great time to consider refinancing. Her cell phone number is 850-227-4492 or you can email her at: alowry@visionbankfl.com. Superior Bank is another good local lender and you can reach Sam Tyus at 850-509-2442 or Sam.Tyus@superiorbank.com.

Short Sales vs. Foreclosures: This is confusing to many people. I try to address it each year in a newsletter since many of you have been added this year. A foreclosure is a property that a bank has foreclosed on and is now owned by the bank. A short sale is when the individual who owns a property tries to sell for less than they owe a bank. Short sales usually require quite a bit of negotiations with the seller's bank and are not all the time successful. Just because a short sale is listed at $399,000, that does not mean the seller’s bank is going to accept that amount. I know that can be very frustrating, and it can drive realtors and buyers crazy. You can often get a great deal on a short sale, but you may need to be patient as it often takes months to try and work out the details. A foreclosed property is different. Once it’s been foreclosed on and the bank owns it, it's a usually a much simpler process to purchase these properties. There are presently 76 foreclosed properties on the market. There are 19 foreclosed residences and 57 foreclosed vacant lots on the market. There are an additional 88 properties listed as short sales, 51 are residences and 37 are vacant lots. You can find these updated daily on the foreclosure link at MexicoBeachsales.com.

Best Deals on the Market
Mexico Beach/St. Joe Beach/ Windmark
Residences
Vacant lots
Cape San Blas/Indian Pass
Residences
Vacant lots
Port St. Joe
Residences

It was great to hear the reports last night that the oil has been stopped for the first time. Let's all hope the fix works and we can begin moving forward.

Take care,

Zach Childs
Broker- Port St. Joe Realty
Cell: 850-819-0833
WWW.MEXICOBEACHSALES.COM

Mexico Beach to Cape San Blas-Sales Way Up-New Hospital & Airport-Oil?

2010-06-17T06:58:00.000-07:00

I hope everyone is doing well and looking forward to a nice Summer. The buying momentum has carried over from last year and the market has seen a lot of closings. 2009 had the highest number of sales since 2005. This year we’ve almost doubled the number of sales we have had year to date. From 1/1/09- to 5/24/09 there were 80 sales. For the same time period this year, there have been 153 closings. Most new listings that are priced aggressively are getting multiple offers. Many properties are closing over asking price. The idea of closing over asking price would have seemed crazy a year ago and is no longer uncommon. I’ve had 17 closings this year and 4 of my listings have closed over asking price.
Mexico Beach/ St. Joe Beach is by far the most active market with almost twice as many sales as any other area. (All sales for this year are below) The Cape also has a lot of ready buyers; the reason for fewer sales seems to be there have been less great deals available. There was one foreclosure listed earlier this year that was a Fannie Mae foreclosure. There is a new rule with some of the Fannie Mae foreclosures that no offers can be accepted within the first 5 days the property is on the market. In the 5 days, there were ten offers. I had a buyer offer $30K over asking price, close in 7 days, no contingencies. We were told that our offer was appreciated, but we were neither the first or second place offer. In these situations where there are multiple offers, the sellers/banks are making a common counter. They are countering each buyer with “bring your highest and best offer”. It’s tough to know what to bid and most properties that get to this point are closing over asking price.

The majority of properties on the market are not priced at these low prices. For certain property types like gulf view condos, there are a lot of buyers waiting on the next deal. Not many traditional sellers are willing to sell for a 70% loss, which means buyers are usually waiting on the next foreclosure or short sale. Over half of the sales in 2010 have been a short sale or foreclosure even though only 1 out of 6 listings is a short sale or foreclosure. The big banks are pricing their foreclosures at very aggressive prices that result in quick sales. With significant competition for the best deals and the fact most listings are priced well over what comparable properties have sold for, it’s not that easy to find a great deal for every property type right now. Many buyers are getting frustrated because they wanted they wanted a place to use by Spring. I’m hearing buyers say more and more that they wish they would have bought that property they liked last year. Rather than somebody coming down and looking at 10 good deals one day and picking one, it’s taking most buyers much longer now to find a deal they are happy with. Most buyers are losing out on the first deal they go after and then they get very serious with their next opportunity. I think there are many good deals that are still to come. It does look like buyers are going to have to get used to having to compete for the very best deals and you may have to look around more than one time.

You can always make offers if you think an asking price is too high. I recently sold what is probably the nicest house in Mexico Beachfor $240,000 less than the asking price. I have sold others this year for 40%-50% of their asking prices. It’s hard not to want to make a low offer, but I don’t advise this when a property comes out listed at a great deal. I have not seen a bank move more than a few percent from their asking price in the first month a property is listed.You will more than likely lose out to another buyer, but I’m always happy to write offers and it may be worth a try. There are still lots of properties that have been on the market for years. These properties usually have the sellers that are more likely to take far below their asking prices.

Do I think it’s a good time to buy and invest in the market? Yes. Am I buying anything? Yes. I’ve personally bought or partnered with others and bought 5 properties in the last 6 months and have contracts on 2 more. I think it makes sense as an investment to buy quality lots in desirable areas that are selling for 15 to 20 cents on the dollar from 2005 prices. Condos and other residences are being purchased for 30-40 cents on the dollar and these can obviously be used and enjoyed and also offer potential rental income. Many of you plan to retire here and have decided to buy now that new houses have been purchased for less than the vacant lots sold for a few years ago. For some of you thinking of entering the market, many prices are the lowest they have been in 10 years. There have been good deals everywhere. At one time, nothing was under $800K in Windmark Beach. There was a closing this year for $45,000. There are townhouses and condos in the low $100’s that formerly sold in the $300’s which is making owning here affordable for more and more people. It may take some time, but let me know what you’re looking for and I’ll do all I can to help you make it a reality.

Two huge new area projects have recently opened. I believe these will both have a tremendous positive effect on the area. The $40 million dollar Sacred Hearth Hospital in Port St. Joeopened March 15. We now have top notch health care that people use to have to drive to Panama City to receive. The new $318 Million Dollar International Airport in Panama City opened this past weekend. This is being referred to as one of the biggest things to happen statewide with an effect that could “change everything”. A smaller project recently completed was the 250' pier extension in Mexico Beach and the new boat ramp is scheduled to be completed in early July. On another good note, I noticed yesterday that Mexico Beach recently made an AOL.com Travel list as a top 35 beach.

Of course the 800 pound gorilla in the room is the oil situation. We don’t have any signs of oil rightnow and I hope we never do. Obviously none of us know for sure exactly what’s going to happen. Is there any effect on the real estate market right now? Yes, the immediate effect has been bigger on vacation rentals. There have been some cancellations. Many others are nervous and want to make sure they can cancel if the oil does come. I have also heard of a few sales contracts cancelled. These all involved people closing this time of year and counting on the big rental income from the next 3 months. Others have postponed closings a week or two to try and get a better understanding of what’s going to happen. Most closings have continued as scheduled. Most buyers have told me they will still happily write offers and close right now if I can find them the property that meets their goals. I do have some buyers that want to wait and see what happens with this situation before purchasing. The next 3-4 months would normally have significantly more closings than any other time period of the year as more people are here vacationing and looking to buy. We were really rolling along well with inventory being reduced and more and more buyers looking to buy. I guess time will tell what long term effect the oil will have on our area and the real estate market. I don’t wish the oil upon any area, but I really hope it stays away from here.
One of the properties I sold recently was our office in Beacon Hill. We still have offices in Port St. Joe and Cape San Blas. We just opened a new office in a much better commercial location in Mexico Beach. This is the office I work out of the most and please feel free to stop by anytime at 3706 Hwy 98. We are in the office formerly occupied by Pelican Real Estate in The Villas of Mexico Beach condominium complex.

Best Deals on the Market:
MexicoBeach/ St. Joe Beach/ Windmark Beach (Mexicobeachsales.comtop 25 and top 15 lots are now being updated at least weekly. I also went back to ranking the best lot deals.The hot products seem to be cheaper lots in the 30’s to $40’s and condos under $200K. There have also been very nice high end houses purchased at great prices.
Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206544958
Vacant Lots: (Not shown are a few new foreclosures just listed in the $30K-$45K range, please let me know if you’re interested) http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206544995

Cape San Blas:
Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206545040
Lots: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206545042

Port. St Joe
Residences: http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206545002
Lots:http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206545006

What's Sold in 2009? 153 Closings
Mexico Beach/St. Joe Beach: 67 Sales
(The hot properties seem to be cheaper lots in the 30’s to $40’s and condos under $200K. There have also been very nice high end houses purchased at great prices.)

Cape San Blas/Indian Pass: 37 Sales
Buyers are buying whatever they can get a great deal on. Most buyers are continuing to chose the North End of the Cape.

Port St. Joe: 31 Sales
The majority of purchasers have been buying single family homes from $50-$150K with some buyers also looking for heavily discounted vacant lots.
North Gulf County: 18 Sales
Mostly lower end sales with only one closing over $100K

What's Currently Under Contract? 72 Properties
MexicoBeach: 30
Cape San Blas: 28
Port St. Joe: 8

North Gulf County: 6

I hope some of this information is helpful. As always, please let me know if I can help with any of your real estate needs. Mexicobeachsales.com now has links to see all foreclosures and tons of other real estate information. If you’re coming down this weekend, there is a music festival in Port St. Joe on Saturdaythat should be a lot of fun. For those of you that like me that like to fish, red snapper season comes in Tuesday and fish are everywhere.

(Recent Aerial taken in Mexico Beach showing the pier extension)

Have a Great Holiday,

Zach Childs
Broker- Port St. Joe Realty
Cell: 850-819-0833
www.mexicobeachsales.com
www.psjrealty.com
www.capesanblasforeclosures.com
www.mexicobeachforeclosures.com
www.stjoebeachrealestate.com

Happy New Year- 311 Sales in 09' and What to Expect in 2010

2010-01-17T05:58:00.000-08:00

Happy New Year to Everyone,I know we are all excited and looking forward to 2010. 2009 was a mixed year that many are glad to see behind us. It was definitely a year full of buyers taking advantage of the low prices. The subject line was not a mistake. It does seem hard to believe, but a remarkable 311 properties were sold in the combined area of Mexico Beach and Gulf County in 2009. For this area, that’s a high number of sales. It’s the most sales since 2005, up significantly from 217 sales in 2008. The 2nd half of the year was particularly stronger with 197 sales last year vs. only 115 sales in the 2nd half of 08. The buying momentum is continuing with 57 properties currently under contract. I will show you all of the sales and break them down below along with the trends and my predictions for 2010. Since my last newsletter, 8 out of my top 10 picks on MexicoBeachSales.com have sold or are currently under contract.

There seems to be a steady stream of more and more buyers looking to buy distressed and aggressively priced properties while the market is down. These buyers appear to be end users that want these properties rather than people speculating and trying to make quick money. Out of 311 sales, there were less than 15 properties put back on the market. I would like to thank everybody for such a wonderful year. I was able to find many buyers their dream property at great prices. I also sold a lot of my listings for sellers that needed to sell. Port St. Joe Realty finished the year ranked #1 in sales volume for the combined Gulf County Area and Mexico Beach. I’m very proud to say we were the first company for this area since 2005 to have more than $20,000,000 in sales volume. I personally finished #2 on MLS in sales volume for the same area with 37 transaction sides totaling $8,314,911. I still have a ton to learn with lots of room for improvement. I really enjoy what I do and look forward to getting better at serving your real estate needs. I have many New Year’s resolutions focused on doing just that.

2009: 307 Total Sales(Click links below to view)
Mexico Beach/St. Joe Beach/Windmark: 132 Sales

Cape San Blas and Indian Pass: 103 Sales

Port St. Joe: 49 Sales

North Gulf County: 27 Sales

There are some exciting new infrastructure projects set to open in 2010 that seem to only be able to help the area. The new international airport is set to open on May 23rd, 2010. It got a huge boost when Southwest Airlines announced recently that it would be coming to the new airport. Vacationers rarely flew to the old airport because it was so expensive. Southwest is already offering many flights for only $69 and will be flying 2 daily non-stop flights to Nashville, Baltimore, Houston, and Orlando. There are many people and organizations including The St. Joe Company that donated the land for the airport who feel that this is a huge announcement. Top leaders are quoted as comparing this to winning the Super Bowl, and the St. Joe CEO is quoted as saying, “This will change the destiny of Northwest Florida.”

Another development that may have an even bigger immediate effect is the March opening of the new Sacred Heart Hospital located in Port St. Joe. Don’t forget that Gulf County and Mexico Beach do not currently have a hospital. This has kept many retirees from choosing this area because of the lack of nearby medical care. Additionally, it’s going to bring a significant number of quality paying jobs to Port St. Joe. The homebuyer tax credit of $8,000 has been extended until April 30th and has a good number first time buyers looking at homes, mostly under $200,000. Rates on a 30 year mortgage are still around 5%. The idea that rates may rise this year also has some potential buyers wanting to go ahead and purchase to ensure a historically low rate.

We are starting to run out of the “great deals”. Buyers aren’t dumb these days. They bought 311 of the best deals on the market. A common discussion that I am having with fellow Realtors these days is about how few of the “no-brainer” great deals are left on the market. I was at a class with a number of other Realtors this week and the consensus seems to be that the St. George Island and Mexico Beach markets have had the most demand and thus have the fewest deals left. There are still deals and more to come; it just seems the number to choose from is getting smaller and smaller. It’s often taking months for me to find a buyer a good deal vs. this time last year when it was a matter of choosing from 4 or 5 different good deals.

2010 looks like it will be a very interesting year. Many signs point to a start of the upturn. The number of properties on the market is down substantially due to so many selling and there seems to be more people looking to buy right now than any time since 2005. I’m not just being optimistic. Look at the number of sales and properties under contract. People are buying. The New Year’s Holiday brought a big crowd and the number of people viewing property compared to the 4th of July. New Year’s Eve here really is a lot of fun, so join us for the celebration. There are trolleys carrying people from Gulf County, which is in the Eastern time zone to Mexico Beach, which is located in the Central time zone. It’s a pretty cool experience that allows you to celebrate the New Year twice.

Out of the 307 sales in 2009, close to half were either a foreclosure or some kind of short sale. The only real negative factor influencing the market is the number of distressed properties that are in or that are potentially going into the foreclosure process in 2010. A great number of the foreclosures have already been sold the past 2 years, but there is still potentially at least another 50-100 properties that could be foreclosed on and hit the market in 2010. What kind of foreclosures and good deals to expect in 2010?

Mexico Beach/St. Joe Beach/WindmarkThe deals, foreclosures, and reductions were across the board in regards to property type with the exception of single-family gulf front properties. The interior single-family home market seems to be stabilizing with just a foreclosure here and there. You may see a few sellers able to sell for slightly more than last year in this category. I do have a heads up on some lots in Gulf County a few hundred yards from the beach that you could build on or put an RV on that are more than likely going to sell very fast when they come out in the mid $20’s. For those of you wanting to park your RV on a lot, remember that Mexico Beach does not allow this, but Gulf County does allow it. Only one foreclosed gulf view condo hit the market in 2009. It looks like there could be 10-30 hit the market in 2010. Most people closed on the condos when the market was very high back in ‘04 and ‘05. There have been almost no sales in the last 3 years because all of these owners have so much invested in them. Now that some foreclosures are occurring, it looks like these very nice units will finally come down to the prices buyers want to pay. It looks like you will be able to get a good condo close to the beach in the mid $100’s. That’s down from the $300 to 500’s people paid a few years ago. There are a lot of potential buyers that like these projects and the idea of almost zero maintenance. This will be a very popular type of property in 2010 that many buyers are waiting to buy. See some of the best deals by clicking here and as always, look on mexicobeachsales.com to see the top 25 deals in this market.

Cape San Blas and Indian PassThe North End of the Cape San Blas remains the most active market. There were a lot of foreclosures gobbled up by buyers in 09. 48 of these were on vacant lots that mostly cash buyers taking advantage of the 50%-85% discounts from 2005. The high end home market was also strong with quite a few sales around around $800,000 for nicer X flood zone Gulf fronts. X flood zone interior lots sold as low as $50,000 and some nice first tier X flood zone lots sold in the $150K range. Many buyers purchased homes at big enough discounts that the rental income can bring them a solid cash flow. With so much demand on the North End, the biggest discounts may be found on the South end of the Cape and Indian Pass in 2010. I do know of one great deal about to be available on a gulf front lot on the North End that was purchased for near $700,000 that will be available in the low $200’s. Remember you can see all foreclosures and short sales listed on Cape San Blas at www.capesanblasforeclosures.com Click here to see some of the other deals.

Port St. JoePort St. Joe does not have the demand for second homes that the other areas do, mainly because it’s not so close to the beach. On the flip side, it does have the most permanent residents and they need somewhere to live. The prices have really come down and the affordability factor is allowing many people that live there to purchase homes as low as $60,000. When you add an $8,000 tax credit to this, that's often makes much more sense than renting. This market has by far the least number of properties on the market and could get a big boost from the new hospital. There have been nice and newer homes purchased as low as $150K and lots in the $20's. Current Best Deals:

If you're looking to buy, sell, or just need advice, I'm here to help.

Stay warm and take care,
Zach ChildsBroker- Port St. Joe RealtyCell: 850-819-0833
www.mexicobeachsales.com
www.psjrealty.com
www.capesanblasforeclosures.com
www.mexicobeachforeclosures.com
www.stjoebeachrealestate.com

Turtle Rescue in St. Joe Bay

2010-01-17T05:50:00.000-08:00

I had a pretty cool experience yesterday. I went with some friends and coworkers to the St. Joe Bay when we got an email saying help was needed. We were able to help save about 40 turtles that were in shock from the cold. Most of them were just floating around in the bay and you could drive the boat and pick them up. The people in charge of the rescue said around 500 had been saved in the last few days. They thought almost everyone of them that was brought in would be fine. They had a big Lowes truck they were being loaded up in to take over to Gulf World in Panama City.

Summer Recap-Sales Volume Up & 68 Properties Still Under Contract

2009-09-18T12:30:00.000-07:00

It’s been a beautiful summer here at the beach. I hope it has been enjoyable to everyone and that you were able to spend some time in our beautiful area. We had a great MBARA Kingfish Tournament with 193 boats making it the biggest turnout in its 13 year history. We had a solid number of visitors for Labor Day who were enjoying one last summer vacation. The Scallop Festival held a few weekends ago in Port St. Joe, was also a huge success that brought 3,000 to 4,000 people to our shores. These big weekends are often first time visits for many people who fall in love with the area and eventually become property owners. Check out this picture taken on the 4th of July in Mexico Beach-definitely the biggest crowd I’ve ever seen.

The deals were good enough this “season” many buyers decided it was time to purchase. There were 81 sales from May 1st to September 15th in 2008 reported on MLS. This year, there were 105 sales for the same time period. I have had a great summer staying extremely busy closing deals and showing property. I have had 15 closings since May 1st. (http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206316447). I have 3 more properties under contract set to close soon and have offers going back and forth on 4 of my listings. I’m currently the # 2 Realtor from on MLS in sales volume and transaction volume for the area covering Mexico Beach, Port St. Joe, and Cape San Blas. Port St. Joe Realty has remained #1 on MLS for all of 2009 for the same area. They are not all big sexy deals, but we’ve been grinding away bringing buyers and sellers together.

The positive side of prices coming down is that the reductions are resulting in sales and attracting buyers. I couldn’t update my top picks enough with the best deals constantly selling quickly. Check out my Top 25 on MEXICOBEACHSALES.COM for the best deals on the market. If you don’t see what you’re looking for, tell me. I can probably find it and don't be afraid to make offers. I just had to add 15 new picks because of all of the ones that have sold. These new picks include my new #1 pick, a beachside home with dock access at $299,000. It’s been one of those properties that has shown almost daily and will sell quickly. There are other solid deals out there including these recently listed or reduced properties; including a builder's custom gulf view home for $319,000. I predict that at least 15 out of my top 25 picks will sell by spring. Don't forget that every week I update the "what's selling" link on my website and you can see the pictures and details for the last 50 properties that have sold. The majority of these buyers are people looking for a good deal on a vacation or future retirement property while the market is down. Most of these buyers seem to prefer the beach areas and a considerably higher number of sales are taking place at the beach areas of Mexico Beach and Cape San Blas vs. the “town area” of Port St. Joe.

Fall at the beach has become many property owners favorite time of year. I know numerous owners that place their properties on the summer rental program that block off and plan to come down and enjoy a month like October for themselves. There are obviously more people here in the summer and that’s when we have the most sales. However, many people feel that fall and winter are the times to get the best deal on coastal property. The logic is based on the fact that sellers are typically getting less showing activity and/or offers which will make them negotiate more than in summer. I believe the activity will slow down some, but there are still a lot of buyers on the fence and the best deals will continue to sell. Just look below at the number of properties under contract right now. One of my favorite weekend activities is The Art and Wine Festival, which is coming up on October 17th at the Driftwood Inn.

As a buyer, you’ve still got to be ready to move quickly on the very best deals that are receiving multiple offers as soon as they are listed. (While I was writing this, one of my agents sitting beside me has received multiple full price offers on 2 different new foreclosure listings.) This is rare, but a couple of deals a month are listed so aggressively that this is the case. If you’re going to need financing, a pre-qualification letter is becoming more important as more of the banks selling their foreclosures are requiring this or proof of funds if paying cash. Most of the banks selling their foreclosures will not even look at offers without one of these items. There have been very qualified buyers lose out to more prepared with what the banks want to see. Rates are looking good at 5.125% for a 30yr and 4.5% for a 15yr fixed rate mortgage. I highly recommend Amber Lowry at Vision Bank and Sam Tyus at Superior for any real estate financing. (Amber: 850-227-4492 (alowry@visionbankfl.com) Sam:850-509-2442 Sam.Tyus@superiorbank.com)

I know a lot of you like to follow the foreclosure activity. Don’t forget about my new websites that automatically updates daily to show every listed foreclosure, short- sale, and pre-foreclosure property listed. MEXICOBEACHFORECLOSURES.COM will show the listings from Mexico Beach to Port St. Joe and CAPESANBLASFORECLOSURES.COM will show Cape San Blas and Indian Pass.

There is also another auction coming up on October 10th. This auction is advertising to sell 3 condos on the canal with boat slips regardless of price. The West End development is thought to be a better and more solvent development than the Tranquil Harbor development that also held an auction a few months ago. Please let me know if you would like to register.

Closings May 1 to September 15, 2009

51 Closed Sales Windmark Beach to Mexico Beach
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317831
42 Closed Sales Indian Pass/Cape San Blas
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317832
13 Closed Sale PSJ Area
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317833

Currently Under Contract 68!!!
Mexico Beach to Windmark 26
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317827
Port St. Joe 9
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317828
Cape San Blas 33
http://www.rafsg.net/RAFSGReports/ListitLib/show_report.aspx?ID=1206317830

Take Care,

There is also another auction coming up on October 10th. This auction is advertising to sell 3 condos on the canal with boat slips regardless of price. These units located at the West End Harbor development is thought to be a better and more solvent development than the Tranquil Harbor development that also held an auction a few months ago. Yhis may be a good opportunity for those of you that want a place to keep your boat. Please let me know if you would like to register or have me bid for you. I think you could see the 1100 sq ft 1 Br's with boat slips sell in the low $100's.( These started at $369,900 a few years ago and just the boat slips were worth $100,000)

68 Properties Currently Under Contract!!!!

26 Mexico Beach/St. Joe Beach/Windmark 33 Cape San Blas/Indian Pass 9 Port St. Joe

Properties Sold from May 1st to Sept 15th- 2009

51 Closed Sales Windmark to Mexico Beach

42 Closed Sales Cape San Blas/Indian Pass

13 Closed Sales Port St. Joe Area

Take care,

Zach ChildsBroker-Port St. Joe Realty

Email: zach@mexicobeachsales.com

Cell: 850-819-0833

Fax:850-647-1618

WWW. MEXICOBEACHSALES.COM

Happy 4th of July- Market Update

2009-07-16T12:22:00.000-07:00

Our quiet little area is at the peak of its tourist season. Every motel room and rental that I’m aware of is booked and we are all looking forward to fun filled holiday weekend. There haven't been any dramatic changes since the last update, but many of the best deals have sold. My number 1, 2, 3, and 4 picks on mexicobeachsales.com have all sold. June has been the busiest month of the year when it comes to both closings and people viewing properties. This is typical as we get into the summer season and the reason you need to have your property listed now if you're wanting to sell. Most of the buyers remain true end users looking for primary or second homes. There is some speculating on heavily discounted vacant lots. The best news I've had for you in a while is that there are a total of 60 properties under contract right now and inventory levels have come down substantially.

If you want to know what kind of deals people are getting, these are good examples to show how much the market has come down. In a subdivision where vacant lots were selling for $245 K, I sold a new 4 BR 2,000 sq ft home w/ garage in a subdivision with a pool for $235,000. The Windmark Beach foreclosure home that originally sold for $1.4M finally closed this week for $395,000, but the waterfront lot at $299,000 is still available. I also sold the newer townhouse that I told you about last month that was listed at $119,000. It went under contract in less than a week and closed last week for $111,500. I also sold the foreclosed lot right across the road from the beach in Beacon Hill that the previous buyers paid $460,000 for in 2004. On Tuesday it sold for $145,500. There was also a quality lot in a nice subdivision 2 blocks from the beach that sold for $30,000.
Click here to see these properties. I currently have a gulf front home, a bay front lot, a riverfront home, and an interior home under contract. People are looking at all kinds of property and want the deals.

There have been a solid number of both vacationers and interested buyers enjoying the area this summer. Spring Break seemed a little slow and I think that is partly to blame on the bad weather we had. The fishing and diving has been great and it's been good beach weather since June began. I’ve been lucky enough to go fishing and diving a few times and have had some great trips. My Dad and the MBARA recently dropped another $80 K in artificial reefs that will continue to provide everyone great places to fish and dive. Scallop season started July 1st and everyone has been finding plenty. Come enjoy yourself.

There are still some very good deals on the market. You never know how low these properties will sell for until you make an offer. If you are searching foreclosures, you can find them all on mexicobeachforeclosures.com and
capesanblasforeclosures.com. You can always see what I think are the top 25 deals on the market for the Mexico Beach Area on mexicobeachsales.com. (I updated these picks today). If you don't see what you're looking for, tell me what you want and I'll try to find it for you.

Best Deals on the Market
Mexico Beach/St. Joe Beach/Windmark
Residences
Vacant Lots:
Cape San Blas/Indian Pass
Residences
Vacant Lots
Best Deals in Port St. Joe

I look forward to continuing to work hard for all of you. I appreciate everyone that has helped me lead the way for the first half of 2009 with the most closed transaction sides for any Realtor in our area. Port St. Joe Realty remains the top producing real estate company for the Mexico Beach/ Port St. Joe/Cape San Blas Area in 2009. Most of you know that I’ll be celebrating and helping Mr. Earl cook lunch for over 200 people on Saturday. The Bo Spring Band will be playing that evening around 6:00. I hope to see you there. Mexico Beach will be having a big fireworks show again this year starting around 8:20 CST.

All of 09 Sales (108 Total)
(Click Below to see Sold Properties)
Mexico Beach/St Joe Beach/ Windmark: 41 Sales

Port St. Joe: 17 Sales
Cape San Blas: 35 Sales
North Gulf County : 15 Sales
June Sales (24)
Mexico Beach
: 10 Sales
Port St. Joe: 4 Sales
Cape San Blas: 10 Sales
North Gulf County: 0 Sales

Currently Under Contract (60!!)
Click any of the links below to see the properties under contract
Mexico Beach : 20
Cape San Blas: 26
Port St. Joe: 9
North Gulf County : 5

Have a Safe and Happy 4th of July,
Zach Childs
Broker- Port St. Joe Realty
Cell: 850-819-0833
Email: zach@mexicobeachsales.com
Websites:
MEXICOBEACHSALES.COM
PSJREALTY.COM
STJOEBEACHREALESTATE.COM
MEXICOBEACHFORECLOSURES.COM
CAPESANBLASFORECLOSURES.COM

Early Summer Update, Foreclosure Websites, Auctions

2009-05-28T18:50:00.000-07:00

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
Houses
Vacant Lots

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

Lots
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.)

mexicobeachforeclosures.com
( Mexico Beach, St. Joe Beach, Windmark Beach, & Port St. Joe)

capesanblasforeclosures.com
(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.

Cheers,
Zach ChildsBroker-Port St. Joe Realty850-819-0833WWW.MEXICOBEACHSALES.COM
WWW.PSJREALTY.COM
WWW.STJOEBEACHREALESTATE.COM
WWW.MEXICOBEACHFORECLOSURES.COM
WWW.CAPESANBLASFORECLOSURES.COM

Early Spring Market Update

2009-03-30T06:25:00.000-07:00

I agree with the national news stating that real estate sales have picked up. They have picked up in our area because buyers are finding deals good enough to make them act. Seven of the properties on my Top 25 on www.mexicobeachsales.com have sold or gone under contract since my last newsletter. Port St. Joe Realty is currently the #1 company in 2009 for the combined areas of Mexico Beach/Cape San Blas/Port St. Joe/North Gulf County. We have an impressive market share with over 25% of total sales volume for these areas and 4 of the top 10 producing Realtors thus far in 2009. I am The Top Producing Realtor for sales volume on MLS from 10/1/08 until 3/18/09 for the combined Mexico Beach/Port St. Joe/Cape San Blas Area. It's been great to help sellers and buyers and more of my listings have sold this year than any other Realtor’s in this area. If you are thinking about selling, it’s time to get your property on the market. Every year, the most potential buyers are looking and purchasing property from March through August. I would appreciate the opportunity to talk with you about your situation if you are considering selling. Please feel welcome to call me on my cell anytime: 850-819-0833

While the foreclosure crisis is dragging property values down, more and more buyers feel that it’s time to cautiously enter the market to take advantage of the situation. Another interesting type of buyer is emerging in people that bought at the top of the market and were not able to get exactly what they wanted because of the high prices. I know of 4 people looking to move up into what they want, and they plan to put their other property on the healthy vacation rental market until the market recovers. It has been fun helping buyers close on some of the best deals seen in years. I enjoy doing everything I can to find potential buyers an even better deal than the one they were looking for. Click the new testimonials tab on my
www.mexicobeachsales.com website to read what some of the people I have worked with say about working with me.

Ce rtain banks are listing their foreclosed properties at aggressive prices to sell them quickly. These are the prices setting today’s market that other sellers must compete with if they want to sell. On a positive note, rates are looking great this week with a 30 yr fixed in the 4.875% range. Vision Bank has only had a small handful of foreclosures in this area, but they’ve been extremely professional to work with due to the fact that they’ve brought in experts like Jim Haag to handle assessing their inventory and getting it sold. I appreciate the opportunity to work with Vision Bank. Fortunately, we were able to get our first listing with them under contract in 12 days and closed 3 weeks later.

There’s still no great sense of urgency making buyers get off the fence. The exception continues to be when they find what they think is such an awesome deal that somebody else will buy it if they don’t. There continues to be more of these deals on Cape San Blas. That market has more properties under contract than the Mexico Beach market even though there are more people looking to buy in the Mexico Beach Area. There are
12 properties under contract on Cape San Blas/Indian Pass and 8 in the Mexico Beach Area . Between all of the Realtors working with people in the Mexico Beach area, I would say there are at least 50 serious potential buyers ready to buy. I’m working with about 12 myself, and it’s interesting to me that there are only 8 properties currently under contract. I put 1 more property under contract which was the newer $299 K house in Mexico Beach that I mentioned last month while writing this newsletter. I am very close to having 2 more properties under contract) If these work out, all 3 buyers will be getting very solid deals.

There is a condo project on the Mexico Beach canal called Tranquil Harbour that looks to have sold only one out of 36 units. 35 out of 36 units that the developer controlled have been foreclosed on. These units are brand new and come with the coveted private boat slip. The bank that owns them has them on the market well above market price, but banks usually reduce until they find the market. (The are now advertising an absolute auction for 10 of the units on May 2nd. If this is legitimate, these may get cheap) Click here to see the 35 on MLS.
Tranquil Harbour
Another Mexico Beach project with multiple foreclosures is Waterside Village . These units originally sold in the $649 K -$749 K range. These were almost all purchased at the top of the market by speculating individuals that are being foreclosed on. The banks selling these will have to compete with other banks by reducing to stay the best deal and attract buyers. There are currently almost identical 3-4 BR units listed on MLS with asking prices ranging from $324,900 to a very optimistic $789,900.

As many of you know Toucan’s, and three adjoining properties, went up for auction on March 12. Turn out was good, with three or four bidders biding over 3 million with a high bid of $3.45 million plus a 10% buyer’s premium. The deal has not closed yet, but the buyer and seller are working toward making that happen. The very nice gulf front house and additional vacant lot had a high bid of $780,000 accepted, which I think was an extremely good deal.
This link will show a pretty cool video taken at the auction.

What are some great deals on Cape San Blas? A gulf front lot similar to ones that sold for $1.6M for $399 K , a bay front lot purchased for $595 K on the market at $199 K , and a brand new 2nd tier pre-construction house for $317,500. The pre-construction packages are becoming more and more popular as buyers become more educated and cautious about the market. Instant satisfaction is great when you can buy a house and enjoy it that weekend. Most people don’t want to wait 6 months for a house to be built. However, buyers are starting to see that they can build exactly what they want and pay hundreds of thousands less than what the homes on the market are still selling for. Most of the homes that have sold on the Cape recently could have been built on comparable lots for much less. This trend should continue to increase in popularity as buyers demand more for their money. The best deals can be found when a builder owns the lot, and they will sell it at a great price and build at a discounted rate to get the deal done. Click here to see deals like this.

Windmark’s restaurant, School of Fish , has found new management and is scheduled to open in early April. “The Fuss”, a women’s clothing store, has now joined Joseph’s Cottage on the retail side in Windmark Beach . The two best deals, by far, in this development are located in Phase 1. The house that originally sold for $1.4 is now down to $494,900 and
the gulf front lot I listed hours ago for $299 K that originally sold for $1,000,000 is already receiving offers. Check out the sunset picture below taken from this lot Tuesday afternoon.

Port St. Joe is also seeing a little activity with four properties under contract. I still think that the Port St. Joe market has a chance to recover the quickest when the employees for the new hospital and port start moving to town and buying up the best deals. PSJ has the lowest inventory of properties, it has the most jobs, it has primarily full time residents, and it has the most affordable market with homes from $79 K to very nice homes in the $250’s, perhaps, because less speculation occurred during the boom. I think some of the people getting good newer homes in the $150 K range will have the opportunity to sell for a profit once the hospital opens. There are relatively few newer homes in Port St. Joe. I think that will be a product that many of the hospital employees and other new industry employees coming to PSJ will want and be able to afford in the low $200 K range. This link will show some of the best deals in Port St. Joe :

http://rafsg.net/RAFSGReports/ listings.asp?ID=1206224000

Have a Great Weekend,

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

2008 Market Recap and Good Start to 2009

2009-02-10T05:55:00.000-08:00

I planned to send out a detailed 2008 report last month. Fortunately, I’ve been surprisingly busy showing property and helping buyers and sellers negotiate deals. I have 8 properties currently under contract! There are a lot of people looking at property and making offers. There were as many Realtors showing property last weekend as there usually are during a typical weekend in July. I’ve already shown close to the number of people property in the last 3 months that I did the rest of last year. I think it’s a combination of the big price reductions and foreclosures hitting the market that is causing the increased buyer activity. The sellers are also realizing that they must compete with the foreclosures, and they are starting to take lower offers than they would have even a few months ago. The properties getting the most attention are the seriously discounted vacant lots and residences that have good rental potential. Not all of the people purchasing these properties with good rental potential are planning to rent them. It’s often just knowing that these properties could rent well if they need to be rented that’s helping them sell.

Port St. Joe Realty is starting the year off very well, and one of my favorite weekends is coming up next weekend. The Mexico Beach Gumbo Festival being held on February 14th is always a lot of fun. I can’t take any of the credit for Port St. Joe Realty being the defending champion in the amateur division. I don’t know if we will be able to enter a team this year because everyone is so busy. I’m showing property to a different potential buyer the day before, day of, and possibly the day after the Gumbo Festival. The El Governor is offering rooms for $50/night that weekend and you need to hurry to make your reservation as they are almost completely booked: http://www.elgovernormotel.net/ Another great lodging offer for that weekend is the discovery packages that Windmark Beach is offering. http://windmarkbeach.com/specialOffer.htm

In 2008, there were more sales than most people realize, especially in the Mexico Beach/St. Joe Beach/Windmark Market. It looked like sellers were done reducing and then came the unforeseen number foreclosures hitting the market. I was looking back over an old newsletter that I sent out at the end 2006, and I was still not aware of a foreclosure in the Mexico Beach Area at that time. Now there are enough foreclosures and short sales that their sales prices are setting the market. (Short sales are much different and often misleading, more on that later) For the most part, the banks are pricing foreclosures aggressively, and they are selling relatively quickly. This process isn’t entirely negative and is actually helping the local economy in a way. For example, in one community there were 2 spec houses that were foreclosed on. Now, these homes are occupied by happy new owners who are spending money and paying taxes in the local economy. I recently listed a 3rd foreclosure, and it’s the best deal yet in the Sea-grass Community. Most of the people buying the lots that have been foreclosed on are planning to build on them in the near future and that will also help the local economy.

2008 Sales Totals on MLS
(Our MLS Service only Shows 50 properties per link, the most recent 50 are displayed)
Mexico Beach Area: 105 Sales (72 Residences and 32 Vacant Lots)
Port St. Joe Area: 27 Sales (18 Residences, 6 Vacant lots, and 3 Commercial Properties)
Cape San Blas/Indian Pass: 59 Sales (40 Residences and 19 Vacant Lots)
St. George Island: 55 Sales (45 Residences and 10 Vacant Lots)

Not all sales are foreclosures or short-sales and some sellers are offering better prices than the banks. I have 3 bank owned properties under contract, 1 short sale, and 4 “regular” properties under contract. All types of properties are not being foreclosed on as well. For example, I have still not seen a single family gulf front home or vacant lot foreclosed on in Mexico Beach or St. Joe Beach. (The first possible foreclosure of this type may be in the auction mentioned below) I know of around 15 potential gulf front single family home buyers between my clients and buyers that other Realtors are working with. They all know the best deals are 2 homes built in the 90’s that are at $749K and $750K. Both of these homes could be very nice and just need the standard updating a beach house built 10 years ago typically needs. (Replace the infamous green carpet, paint, etc) Because of foreclosures bringing prices down on Cape San Blas, it is the first time I am aware of that you could now actually get a better deal on a new Gulf front home on Cape San Blas for less than the Mexico Beach Area.

“I am not comfortable buying on the Cape because of flood zone issues”. I have heard that 1000 times and completely understand. Here’s a cheat sheet for the Cape. The best flood zone for the Cape, Mexico Beach, or anywhere in Florida is “X”. If you are not in zone “X” on Cape San Blas, you will be required to carry private flood insurance if you have a mortgage on a home, which is usually pretty expensive. Private flood insurance for a nice gulf front home on the Cape can easily be $10,000-$20,000. That’s a whole lot extra vs. $0 for a home in the “X” Flood zone. The private flood insurance is not required on vacant lots and I’m afraid a lot of people did not realize the huge difference when they bought lots in flood zones. When they tried to resale to end users, these people found out what a discount it takes to sell a lot in a flood zone and many of these are in foreclosure. The last gulf front lots in the “X” flood zone sold a few months ago for $550K and $575K. These sold at the top of the market for as high as $1,600,000. There was an “X” flood zone just listed for $399K. With the cost of building as low as it is, you could have an incredible gulf front house with $100K/year rental potential for around $700K. The best deal by far for a gulf front home in a flood zone is this one at $599K which actually has reasonably priced flood insurance.

There haven’t been as many foreclosures in the Mexico Beach Area as there have been on Cape San Blas. When comparing apples to apples the best we can, the Cape market was higher than the MB market and now it’s a little lower because of the foreclosures being priced for quick sales. There have been and are a few of the really good deals on Cape San Blas. These really good deals are what buyers are looking for and consequently I’m spending more and more time on the Cape. The beach re-nourishment project is complete and the beach ranked # 1 in America by Dr. Beach in 2002 has some positive momentum going into spring. Check out these pictures of the beautiful beach taken from the $399K lot. This link will show a cool video of Cape San Blas and Gulf County. I am working on a new Cape San Blas search website that I hope is complete by next month.

Now back to Mexico Beach. There are a lot of people looking for the “deals” in the Mexico Beach area. Two of my listings went under contract last week, and another is being shown regularly after taking a big price reduction. This home originally listed at $649K is now listed at $299,000! This bank owned lot listed for $179,000 was purchased in November of 2004 for $460,000. Casuna lots were originally released prior to the boom for $50K and quickly went up over the next 4 years to over $200K. Now you can buy one again for $50K.

Financing terms are varying substantially for homes vs. vacant lots. Buyers are finding lenders eager to lend on personal and second homes and are finding solid 30-year fixed mortgages with 10% down in the 5% interest range. Finding financing for vacant lots is much harder to obtain and I am seeing strong borrowers having difficulty finding anyone requiring less than 35% down! If you know of someone offering better terms on lot loans, please let me know. It’s driving me crazy how much easier it is for someone to borrow $350K for a home than it is for the same person to try and get $100K for a lot. There are some exceptions that make lending on lots less stringent if the borrower plans to start building within the next 6-12 months. It’s far different from a few years ago when you could “state” your income and receive 100% interest only financing on vacant lots.

What is the difference between a short sale and a foreclosure? There is a huge difference. A short sale is when someone is trying to sell for less than they owe, and they are trying to get the bank to forgive the difference. These can be very frustrating to deal with and often take months to get some kind of an answer from the lender, which is often “no”. Many times the sellers need an offer before the lender will negotiate so they reduce the price until they get an offer. This price is usually not yet approved by the lender and often buyers will make full price offers that the banks won’t accept. This is very frustrating for buyers and myself. A buyer that’s only here once every three months will come down and focus on a property and then leave and make a full price offer and be told no. There are great deals occasionally on short sales, but it’s a process that needs to be understood.

Bank Owned Foreclosures are a totally different story. I enjoy working with both the banks and the buyers on purchasing foreclosures. Once the bank has foreclosed on a property, they are in 100% control of the property. For example, a bank in New York is not in the business of owning a lot in St. Joe Beach. Once they are in possession, they then assign it to an asset manager that usually assigns it to an Realtor that is told to price it aggressively enough to sell it within 90 days. The whole process is handled by professionals with the job of getting the property sold quickly. It is usually much easier to purchase a foreclosure than a short sale.

Windmark Beach and The St. Joe Company are being forced to make some tough decisions. I don’t know when that community will finally take off and start getting “rooftops” as they like to say. What is certain is that they have built an incredible development that will one day be the most prestigious community in this area. Keep an eye on their progress and you should drive through there if you haven’t done so in a while to see all of their improvements and additions. I like the leadership of Joe Rentfro. He and the other customer-oriented employees like Kristy Grove have that community going in the right direction. They are now offering a price guarantee on lots that’s pretty interesting. Phase I is active with foreclosures, but St. Joe controls over 99% of the inventory in phase 2 and there hasn’t been a foreclosure in phase 2. Their momentum will temporarily be slowed down if Brennan’s Restaurant does not reopen in the spring. I hope they are able to resolve that and/or find a better solution for the community at least by this summer. They have opened a first class gym in Windmark and I believe that a new women’s clothing store called “The Fuss” will be opening later this year.

Another exciting date could be auction of Toucan’s Restaurant being held on March 12th. I am skeptical of these auctions because no property has actually sold at the last 4 that I have attended, but who knows, this may be the one where you get a great deal. There are neighboring property owners adding their property to the auction including a very nice gulf front home. Here’s a link with more info: http://www.roebuckauctions.com/

Take Care,

Season's Greetings, Foreclosures and Eagles on the Beach

2008-12-28T14:03:00.000-08:00

Season’s Greetings,

National banks and mortgage companies have started selling their inventory of foreclosed properties and providing incredible opportunities for buyers. Sales volume has remained steady as bargain hunters purchase these and other properties that individual sellers have reduced to stay competitive with the foreclosure listings. At one time a few weeks ago, Port St. Joe Realty had 8 properties under contract. (All 8 are still on track to close or have already closed) I helped two sets of buyers this month purchase two of the best deals in the last five years. In my last newsletter, I talked about my #1 pick on http://www.mexicobeachsales.com/ . It was a large, 2nd tier, gulf view, newer, 4 BR/4BA, single family home w/ over 4000 total sq ft that the sellers purchased for $835K. I told everyone last month that the sellers thought their bank may take a very low offer. The buyers purchased this home that sold for $835K on 10/04/2005 for $350,000. It also came completely furnished and equipped.

These buyers are good friends of mine that I met while helping them purchase their first property here two years ago. They had been patiently waiting to purchase a 2nd property to place on the rental market. I knew what they were looking for and after they looked once at this house, they made an offer. As I have been saying about rental income potential, it is possible when marketed properly. Their rental company is projecting this home to gross $45,000 in rental income for 2009. (It grossed $35K this year and wasn’t placed on a rental program until April)

A misconception about this market is that the cost of property insurance is extremely high. It was higher in 2005, but has come down substantially. I would give Andy Smith at Hannon Insurance a call if your policy hasn’t come down (850-258-5128). The home above was insured for around $1500/year and the next home I’m going to tell you about was insured for under 900/year. Taxes are also way down due to assessed values coming down with the market.

The other home I sold this month had been foreclosed on earlier this year. It’s a very neat house built in 2005 that’s a short walk to the beach and it’s pictured below. This home had 3 offers made on it within 3 days of it hitting the market. The buyers I was working with ended up purchasing it for $244,000. There is not an abundance of deals with low asking prices on the market. When one is listed at a great price, it’s selling fast and usually getting multiple offers. Both of these homes had relatively quick closings and were both financed through Amber Lowery at Vision Bank. Amber did a wonderful job and had great rates (850-227-4492). Speaking of great rates, I’ve been emailed quotes this week as low as 4.5% for a 30 year fixed mortgage.

I have been working along with Steve Newman on listing a number of foreclosures. We listed a vacant lot on Cape San Blas for $99,000 that was purchased in 2005 for $380,000. It quickly received multiple offers and went under contract. We also listed a lot in Highland View for $24,999 that was purchased in 2005 for $205,000!!! The deals are coming and you need to be ready. I am doing the paperwork and pre-market analysis for a number of other foreclosures. Since they usually sell quickly, I need to know what you are looking for if you want me to contact you when they are listed.

Another Great Deal that recently closed is the Gulf front home below that had an asking price of $800,000. It ended up selling for $520,000. It’s was built in 1980 and needs some work/updating. However, it’s the first Gulf Front home in this area on MLS to close under $800,000 in at least 4 years. Two Gulf front homes both listed at $1,500,000 went under contract as I was writing this. It will be interesting to see what these 2 homes rumored to be going into foreclosure end up selling for.

With the number of foreclosures in the pipeline to hit the market, there are going to continue to be tremendous values for buyers. The best new deal on the market is a great beach house that sits right across the street from the beach in St. Joe Beach. Vacant lots similar to the one this house sits on sold for over $600,000. It is now listed for $329,000. There are two foreclosure homes that I think someone may get a very good deal on. One is a home in phase 1 of Windmark Beach that was purchased for $1,400,000. It’s now on the market at $559,000. For comparison to other properties in Windmark Beach, it’s the only home listed under $1,000,000. The second home is located across from the dedicated beach in Mexico Beach. The previous buyers paid $1,100,000 and now it is on the market for $649,000. Both of these are owned by National banks that are motivated to sell. I am very curious to see what the banks would actually take for them. There is also a great lot in the Casuna Subdivision on the market for $59,000. Possibly the best long term investment is the 3 acres of commercial land available in Mexico Beach for $449,000. (An identical piece sold for $1,600,000 in 2006)

Best Deals in Port St. Joe
Best Deals on Homes in Indian Pass and Cape San Blas
Best Deals on Vacant lots in Indian Pass and Cape San Blas

Below are the sales that have taken place in the last 90 days as well as the properties that are currently under contract.

Mexico Beach 30: http://rafsg.net/RAFSGReports/listings.asp?ID=1206191089
Cape San Blas 21: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190551
Port St. Joe 9: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190553
North Gulf County 12: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190554
St. George Island 26: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190555
Apalachicola 10: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190556
Carrabelle: 16: http://rafsg.net/RAFSGReports/listings.asp?ID=1206190557

I will be sending out a thorough analysis recapping the market in 2008 and giving my projection for 2009 in the coming weeks.

Occasionally I’ve been taking a small camera with me while I jog in the morning. I was lucky enough to have my camera the morning this bald eagle was out cruising the beach

Fall Market Update

2008-10-14T07:22:00.000-07:00

Of course our market is affected by the mortgage/financial crisis. The cheapest properties on the market in 2005 sold for $200,000. Some of these same properties are now available in the high $50’s. I have spoken with real estate professionals in other areas and some of them report almost no sales. Their sellers have only reduced 10%-20% and they feel they are giving it away. Our market has taken the huge reductions necessary to move properties. This has rapidly driven prices down 25 to 70% over the past three years. You’ll see some these tremendous reductions on my new Top 25.

From July 1st to October 5th of this year, 32 properties have sold and another 10 are currently under contract in the Mexico Beach Area. In comparison to the same time period in previous years: 43 sold in 07’, 33 in 06’, and only 53 at the top of the market in 2005. My point is that in spite of horrible news, people are buying. Port St. Joe Realty has been very fortunate and had 9 closings during this time. It takes guts to buy when the market is down and confidence low, but fundamentally this is the time to buy. It’s ironic how we are all comfortable paying more than the last guy in a good market and scared to pay less in a bad one.

My advice remains the same. There are too many opportunities on the horizon to purchase a marginal deal. Be patient with the market, understand you may have to offer on numerous properties, and you will find what you are looking for. Just remember, you are not the only one looking for these great deals. They will go fast once people know about them and you need to be ready to act.

There are deals too good to pass up. A single family home in a nice area sold for $87,000. It needed a lot of work, but that was solid. Especially considering that a non-mobile single family home has not sold for less than $175,000 in the last few years. Check out my maybe #1 pick. It’s a short/sale foreclosure that the buyers purchased for $825K. There is a rumor that their bank is willing to take in the low $400’s. Furthermore, check back for a development opportunity that should hit the market next week. It’s a 3 acre commercial/high density (18 units/acre) tract with huge development potential. An identical tract was purchased in 2006 for $1,600,000. This tract may hit the market under $450K. It would be a great one to buy and hold until the market recovers. We also placed 1 of our 4 offices on the market. This office/house is priced right and located in the peaceful Beacon Hill area better suited for residential use. We plan to move to a higher traffic location in Mexico Beach.

I watch the news and hear how tough loans are to obtain. However, the majority of people I am dealing with are not having that much trouble borrowing for primary or secondary homes. I have seen regular borrowers get 30 year mortgages in the 5.5% range lately. With 20% down on a $250,000 house, principal and interest payments would only be $1,135/month. That’s awesome. (I added a great new mortgage calculator to http://www.mexicobeachsales.com/) Lot and mobile home loans seem to be a little tougher to obtain and owner financing is remaining attractive to buyers. Three of my listings that recently sold offered owner financing and the sellers were able to charge an interest rate over 7%.

In hindsight, banks see that lots were a more speculative investment than homes. If the average single family home is down 30%, then the average lot is down 60%. More borrowers have stopped paying on lot loans. In these cases, the banks are way upside down on a non-income producing investment if they have to foreclose. I am working with 2 different couples right now looking for nice single family homes 2-3 blocks from the beach. There is one brand new competitively priced home in this area that hit the market last week. With an exception to it, they will be able to buy a lot and build exactly what they want for $25K-$75K less than they would spend if they purchased the best deal at listing price for an existing resale home. Normally the opposite is true.

Building costs (labor and materials) are down substantially and this is another variable that is making building such and attractive option. These factors and great customer service are two of the reasons that Big Fish Construction is continuing to build a number of new homes for their clients. Bo and Steve are easy and fun to work with. If you have any questions about building, give these guys a call and you may be pleasantly surprised at your options. Steve Newman 850-527-5117 or Bo Spring 850-527-0194.

In the midst of the banking failures, I am asked almost daily about the strength of the local banks. I don’t know the complete financial situation of any banks. I will share what I know and who I enjoy working with. To start with, you need to understand that banks sell a large portion of the loans they originate. Many of the bad loans are the “bad paper” you hear about in the news. I’m saying this to address the concerns that the local banks have all of the loans on foreclosed coastal properties. That’s not true. I also remember during 2005 that many people were using mortgage brokers who shopped hundreds of national programs. For example, the lot loans I remember most people using were from Royal Bank of Canada.

Sure, all of the local banks have their share of bad loans. Vision Bank has a solid community presence. I regularly work with and highly recommend Jim Norton, Johanna White, Kyle Adkison, and Karen Fontaine as top notch bankers. Vision is owned by the conservative Park National Corp out of Ohio. Their stock (PRK) is trading at $77/share as I write this and they have over a BILLION dollar market cap. The other banker that I enjoy working with is Sam Tyus at Superior. Superior operates in the Southeast and they have a good common sense approach at the local level. They are also publicly traded. (SUPR).

Discussions abound whether the volatility and losses in the stock market and banking concerns help or hurt real estate. One side of the argument is that as people lose money in the stock market, they have less to spend on real estate. The other side to the argument is that as the stock market struggles, people move money into real estate for a safer investment. There are properties selling for a low as $.30 on the dollar that are generating solid returns from rental income. There are listings that are safely grossing 8-10% of their purchase prices in yearly rental income. 24 out of the 83 buyers in the Mexico Beach Area this year have paid cash. After the owners take advantage of the expenses and depreciation allowed as income tax deductions, the properties are yielding an effective return over 10% in some situations. That sure beats 3.5% in a bank and seems less risky than the stock market in times of financial uncertainty. Check out a few of the potential high income properties currently on the market.

I’m not sure anybody has all of the answers right now. I can tell you that this fall has been absolutely beautiful. I hope you have been able to come and enjoy this wonderful place that I’m lucky enough to call home. We don’t have a traffic light and the only crowds this time of year are seagulls and seashells. I don’t think you can find a more relaxing place. If you need an excuse to visit, the Art and Wine Festival is October 18th.

Below are links to see the closings for other areas that have occurred since July 1st. The Mexico Beach Area remained the most popular choice with buyers and had almost twice the number of closings compared to all of the other areas.
Cape San Blas 18: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172106
Carrabelle 16: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172110
Port St. Joe 10: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172107
St. George Island 10: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172108
Apalachicola 8: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172109
North Gulf County 7: http://rafsg.net/RAFSGReports/listings.asp?ID=1206172111

Take Care,

Sacred Heart Hospital Update

2008-10-01T07:31:00.001-07:00

FOR IMMEDIATE RELEASE Contact: Mike Burke
September 12, 2008 850-969-1319

Construction Proceeding on Target for New Hospital
In Port St. Joe

Construction is continuing on the new $35 million Sacred Heart Hospital being built along Highway 98 in Port St. Joe. The new hospital and adjacent medical office building will bring quality healthcare to Gulf and Franklin counties and will provide as many as 150 new jobs.
"The construction is progressing nicely, and we have been fortunate not to be impacted by any inclement weather, which could delay the project. We are still on target to open the hospital in the fall of 2009,” said Brian Matson, vice president of strategic planning for Sacred Heart Health System.
Work on the foundation and excavation of retention ponds on the 27-acre site is now complete. Installation of underground electrical and plumbing infrastructures is underway, and vertical construction of the building is slated to begin the first week in October. Construction of the adjacent medical office building is anticipated to begin in the next 60 days, and is scheduled to open with the new hospital.
“Offering a medical office building on the hospital campus will provide patients convenient access both to physicians and any required diagnostic services,” said Peter Heckathorn, executive vice president, Sacred Heart Health System.
Sacred Heart has provided radiology services in local area for more than a year and recently began offering rehabilitation services in both the Port St. Joe and Beacon Hill communities. "Sacred Heart is pleased to show our commitment to the local community by offering these services in advance of our hospital opening," said Sidney Scarborough, vice president of ambulatory care, Sacred Heart Heath System. "Response to the rehab clinics and radiology services has been encouraging, and the physicians have been extremely supportive." The new Sacred Heart Hospital will provide residents of Gulf and Franklin counties with healthcare facilities that include:
A community hospital with private rooms, an 24-hour emergency department and operating rooms
A full complement of diagnostic and laboratory services
A medical office building with space for primary care and specialty physicians, as well as various outpatient services
A helipad to be used by Sacred Heart's AirHeart helicopter, providing rapid transport for trauma patients and other critically-ill patients
For more information about Sacred Heart Health System, visit www.sacred-heart.org.

Gustav- No Damage, Cool Surfers

2008-09-04T09:21:00.000-07:00

Thanks to Denise Nichols for taking these pictures from my deck. It's rare we have waves big enough for surfers and this was a treat for all of us. We couldn't believe it, but surfers had flown in all the way from Hawaii. We had a photographer for Surfer Magazine taking pictures in front of the house.

Fay and Market Update

2008-08-25T06:23:00.000-07:00

We boarded up windows and got ready for a storm that luckily decided to skip us over. I’m getting lots of calls from people with damage in South Georgia and other areas of Florida. There is no damage in our direct area. We had a little bit of wind and maybe 1-2 inches of rain. I took a jog down the beach this morning and could not tell there had been a storm. It’s a beautiful day and kids are playing on the beach. If you are worried about your property, I will be glad to check it out and send you a picture if you would like one.

The biggest impact the storm had on Mexico Beach was the rescheduling of the MBARA Kingfish Tournament that my father puts on every year. The new date is September 13th. The tournament is a lot of fun for everyone and brings a big crowd to the area with nearly 200 boats entering each year.

The Mexico Beach Market has quietly been active the last 30 days. There are 36 properties that have sold or that are currently under contract! The main sellers have been interior (2-3 blocks from the beach) single family homes for under $300K. There were starting to be a lot of good deals in this category and I predicted last month that these would start selling. There has also been a run on the single family lots 1.5-3 blocks from the beach priced under $75,000. This link will show you all 36 properties: http://rafsg.net/RAFSGReports/listings.asp?ID=1206160066 .

Top Picks #3, #4, #7, #10, and #17 went under contract in the last few weeks. All 6 of the lots that have sold or gone under contract recently were featured on my Top 15 lots. Last month, I talked about an unobstructed gulf view lot being reduced from $385K to $200K. It received 3 offers in a matter of days and ended up closing above asking price at $205K. The 2 lots I talked about being such a great deal in Mexico Beach that were purchased for $125K each were resold for $160K and $170K.

The Cape and Port St. Joe haven’t seen as big of a spike in activity over the last 30 days, but they are seeing activity. The Cape has had 14 properties and Port St. Joe 11 properties that have sold or are currently under contract.
Cape San Blas 14: http://rafsg.net/RAFSGReports/listings.asp?ID=1206160067
Port St. Joe 11: http://rafsg.net/RAFSGReports/listings.asp?ID=1206160068

Be sure to check out www.mexicobeachsales.com . I updated the Top 25 this morning. I’ve added a few foreclosures, short sales, and other aggressively priced properties including; a newer gulf front home for $750,000, the lowest priced Surfside unit EVER, 4 Apartments bringing in $31,000/year for $299K, and a newer gulf view beach house reduced from $549K to $349K.

Take Care,

Zach

Mid Summer Market Report

2008-07-24T13:08:00.000-07:00

Be sure to check out www.mexicobeachsales.com. After many requests, I have gone back to ranking the Top 25 deals on the Market. You can also click the “what’s selling?” button to see the last 50 properties that have sold in the Mexico Beach/ St. Joe Beach/Windmark Beach Area.

I think we had the largest crowd ever in Mexico Beach on The 4th of July. The beach looked great and the weather was perfect. Every motel room and vacation rental, including the many new units now on rental programs were rented. Most of these are also rented for the majority of July and lots of people are looking at property. The message I am trying to communicate this month is that there will be a low number of sales this year despite the increase in numbers of people looking to purchase. There are more people looking than in 2006 or 2007.

Closings comparisons for May 1st to July 12th from 2003 to 2008.
Mexico Beach Area
Currently Under Contract 15: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152034
Number of Properties on the Market: 528
Number of Closings
5/1/08-7/12/08 24: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152047
5/1/07-7/12/07 36: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152046
5/1/06-7/12/06 20: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152041
5/1/05-7/12/05 52: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152040
5/1/04-7/12/04 89
5/1/03-7/12/03 76

Cape San Blas
Currently Under Contract 4: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152031
Number of Properties on the Market: 481
Number of Closings
5/1/08-7/12/08 10 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152048
5/1/07-7/12/07 17 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152045
5/1/06-7/12/06 8: http://rafsg.net/RAFSGReports/listings.asp?ID=1206149180
5/1/05-7/12/05 72: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152039
5/1/04-7/12/04 116
5/1/03-7/12/03 76

Port St. Joe
Currently Under Contract 8: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152030
Number of Properties on the Market: 213
Number of Closings
5/1/08-7/12/08 4 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152049
5/1/07-7/12/07 10 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152044
5/1/06-7/12/06 14: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152043
5/1/05-7/12/05 37: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152036
5/1/04-7/12/04 68
5/1/03-7/12/03 43

Here’s my simple theory on the current market and explanation as to why there are so few properties selling this season. To get a feeling for the market, put yourself in the shoes of a prospective buyer. You love the beach and want a place to enjoy. You understand this is a big investment and prices have been falling since the summer of 2005. You and every other buyer want to make sure you get the best deal in the last 5 years. You are an educated buyer and know that the last property like the one you are looking for sold for $200,000 three months ago. 9 out of 10 buyers in this market have a mindset that they are not buying unless they can get a better deal than the last guy. Even though this $200,000 property was worth $400,000 3 years ago, your thinking is to not pay more than $175,000. The bottom line is that these potential buyers are hesitant to buy. They only purchase if they feel like they are getting a great deal.

This has been the mindset of buyers since the market started coming down in 2005. The market is running out of sellers that can afford to sell for less. While I do not think that we are at the bottom of the market, this is a good sign that we are getting closer to the bottom. With so many properties on the market, there will be a few sellers that have to sell quickly. Individuals forced to sell for whatever they can get quickly and banks that have to sell foreclosed properties will continue to result in low sale prices. There are not many of these stand out deals. Do not pass them up if they are what you’re looking for.

Earlier this year there were 8 Gulf-side townhouses that stood out from the other similar properties as solid deals. There were multiple buyers sitting back waiting on them to reduce more. Once one of them went under contract all 8 of them sold within 2 ½ months. The result is not that people have paid more; rather not one unit like these 8 has sold since May. There are 4 other similar units that are short sales that have been under contract for a while. These short sales often take a few months to get the terms worked out with the banks. (Short sales are sales where the seller is trying to get the bank to allow him to sell for less than is owed on the mortgage) There is a similar situation to the townhouses right now with a number of single family homes with asking prices from the $180’s to $400’s. http://rafsg.net/RAFSGReports/listings.asp?ID=1206150826 A few of these listings are getting shown 4 and 5 times a week. That is a ton of activity.

I think once one of these goes under contract that at least 4 or 5 of them will sell before summer is over. There are a few townhouses that have started to see activity after reducing their prices as well. One of the eight units that was purchased earlier this year for a very good price was put back on the market with a new asking price over $100,000 more than was paid a few months ago. It went under contract while I was writing this report. Not many people know the market well enough to successfully flip property. The key to being successful is to purchase it for such a good deal that you can resell it for a great deal to the next guy and still make a profit. (Minutes before I sent this the $125K lot in the next paragraph looks like it went under contract for considerably more than the buyer paid a few weeks ago)

It’s ironic with so many more sellers than buyers that buyers are starting to become frustrated because they can’t find what they consider a super deal. I could probably sell 10 of the beachside lots looking down the canal that had an asking price of $375K and sold for $125K. That’s the kind of deals people are looking for but now they can’t find anything comparable under $215K. With the $125K lot in the back of their minds, the other lots on the market seem overpriced and the result is no sales. There was a lot in St. Joe Beach just reduced from $385K to $200K. It sits right across from the beach with unobstructed views and I know that there were 3 offers submitted within 24 hours of it being reduced. Similar lots to this one start at $350K. I truly believe that the buyer will be getting a great deal. http://rafsg.net/RAFSGReports/listings.asp?ID=1206152035

The negative side to this is that it makes every other similar lot look severely overpriced. The result will again be very few sales. There will be 10 people that want a lot like this for $200K, but these lots sold for $600-$700K three years ago. There aren’t many sellers that can afford to sell that low. I don’t know if you consider it helping or hurting the overall market, but that’s how these very good deals reduce the number properties that sell. If the current rate of sales continues, I estimate that less than 1 out of 9 properties on the market will sell this year.

We have not been exempt from the foreclosures and it has forced banks into raising their lending requirements. This makes it harder and harder for people that want to buy to get loans. This has started leading to more sellers offering owner financing. It’s not as easy and clean as a quick close, but it seems to be a win/win in many situations for the buyer and seller. I was not involved in 1 owner financing transaction from 2005-2007 and I heard of very few. I was involved in one earlier this year and I am currently in negotiations with 2 other sellers that have attracted buyers by offering owner financing. Owner financing looks like a trend that will become more common. I am now advising sellers to at least consider offering this to attract buyers.

I have no doubt that properties purchased between 2004 and 2006 will continue to be foreclosed on through this year and into 2009. Port St. Joe Realty is very connected with local banks and has national connections as well that enable us to quickly get information about foreclosures to our clients. The majority of banks are continuing to ask more for their foreclosed inventory than they can sell for in the current market. However, there have been 6 or 7 foreclosed properties have been great deals this year and sold in a matter of days. Our 4 offices continue to perform well despite the market conditions. This link will show you some of our recent sales including 3 properties that we currently have under contract. http://rafsg.net/RAFSGReports/listings.asp?ID=1206149385

I often get calls from people asking me to refer them to attorneys and appraisers. I’d like to tell you about 2 friends that have recently opened their own businesses. Jeremy Novak has experience as a Realtor and in property management. He has recently opened his own law firm in Port St. Joe located next to our Port St. Joe Realty office on 7th Street. Jeremy offers great personal service for real estate closings and other legal matters. Matt Terry has recently started The Appraisal Group of North Florida and can help with any of your appraisal needs. Another trustworthy appraiser is Greg Norris. Jeremy Novak: 850-527-9121, Matt Terry: 850-227-6478, Greg Norris: 850-596-6505.

Total 2008 Sales:
Mexico Beach 54 (43 Residences and 11 Vacant Lots)
43 Residences http://rafsg.net/RAFSGReports/listings.asp?ID=1206152057
11 Vacant lots http://rafsg.net/RAFSGReports/listings.asp?ID=1206152058
Port St. Joe 13: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152055
Cape San Blas: 35 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152056
Carrabelle: 41: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152050
St. George Island: 39: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152051
Apalachicola 21: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152052
North Gulf County 12: http://rafsg.net/RAFSGReports/listings.asp?ID=1206152054
Eastpoint: 13 http://rafsg.net/RAFSGReports/listings.asp?ID=1206152053

Take care,

Zach Childs

Market Update and AJC Article

2008-05-09T07:49:00.000-07:00

I wanted to give a quick update on the market and share an article that appeared recently in The Atlanta Journal Constitution.
It’s getting to be Summer and that means that more and more people are at the beach and looking at property. So far this year, we’ve had 32 closings in the Mexico Beach/St. Joe Beach Area. There are an additional 15 properties under contract at this time. I need to point out that 9 residences are selling for every 1 vacant lot that sells. Gulf front and beachside townhouses were the hot sellers over the last 2 months with 12 selling or going under contract. I showed one group of potential buyers 4 of these units. In the following 2 weeks while they were considering their options, all 4 sold. With those 12 properties off the market, asking prices for similar units start $70,000 higher. That’s created a similar situation to what happened earlier this year when the 4 top deals on Gulf Front houses sold and asking prices now start $100,000 higher.
We are seeing more and more foreclosures. Six out of the Twelve townhouses I mentioned earlier were either foreclosures or some kind of short sale. On the positive side, there are a number of buyers looking for these good deals and foreclosures. There have been very good deals on foreclosures and properties that people needed to sell. There was a foreclosed beachside townhouse that hit the market at $180,000 last week. This unit was at one time worth over $500,000. This particular unit could be in great shape with about $50,000 of repairs/updating. It would then be able to sell for around $325,000. There were 8 people that made offers within 3 days of it hitting the market!
You’ve got to be ready to move on the best deals. Call me and let me know what you’re looking for anytime on my cell at 850-819-0833. Let me work for you. I can keep you updated on the best deals and help you find the property that is right for you.
There have continued to be a few sellers that have accepted offers way less than their asking prices. The way to find out about these is to make offers. A great lot had an asking price over $350,000. I would say it’s worth around $225,000 and I didn’t think much about it because it was overpriced. Somebody made an offer last week and the rumor is that the seller accepted $250,000 less than their asking price! The buyer got a great deal by making offers. I don’t understand why the seller wouldn’t try asking less, but this happens time and time again. I’ve helped 2 buyers this year find properties where the sellers each accepted more than $400,000 less than their asking prices. Just tell me what you’re looking for and what you’d like to pay. I can probably find it. I enjoy finding buyers the absolute best deals available.
Port St. Joe Realty is continuing to be a top producing real estate company in the Mexico Beach Area as well as Port St. Joe and Cape San Blas. We had 2 agents work very hard and close 3 Gulf front properties last week for $1,600,000. We’ve also updated www.psjrealty.com and added a 4th office that is located in Barrier Dunes on Cape San Blas. I recently listed 3 great places and have some other bargains listed as well. Take your pick of the Mexico Beach Canal, a very peaceful setting on St. Joe Bay, or a Gulf Front Home in St. Joe Beach. http://rafsg.net/RAFSGReports/listings.asp?ID=1206133039
Additional 2008 Sales Information
20 Cape San Blas Sales: http://rafsg.net/RAFSGReports/listings.asp?ID=1206133067
5 Cape San Blas under contract: http://rafsg.net/RAFSGReports/listings.asp?ID=1206132854
9 Port St. Joe Sales: http://rafsg.net/RAFSGReports/listings.asp?ID=1206132851
2 Port St. Joe under contract: http://rafsg.net/RAFSGReports/listings.asp?ID=1206132855
22 St. George Island Sales: http://rafsg.net/RAFSGReports/listings.asp?ID=1206132852
15 St. George Island under contract: http://rafsg.net/RAFSGReports/listings.asp?ID=1206133106
Next, read the article from The Atlanta Journal Constitution.
New airport could put Florida's Forgotten Coast on mapBy MELISSA NELSONAssociated PressPublished on: 04/27/08
Mexico Beach, Fla. — Marilyn Theus peddles costume jewelry, chipped china plates and other "junktiques" on the roadside between Port St. Joe and Mexico Beach. On Tuesdays she's joined by a friend who markets fresh shrimp from the site overlooking the turquoise waters of St. Josephs Bay.
The vendors are part of the local charm of Florida's Forgotten Coast, which stretches along the Gulf of Mexico from Mexico Beach to about 100 miles east to St. Marks. Mom and pop motels, bait shops and undeveloped beaches dot the coast south of the Apalachicola National Forest.
But a new $330 million international airport, scheduled to open in early 2010 on a 4,000-acre site north of Panama City, could mean big changes for these quiet oyster and shrimping towns, long bypassed by tourists.
Political leaders and the St. Joe Co., formed by the du Pont family to harvest timber for paper products in the 1930s, pushed for the airport and the access it would bring to the an area known as "Florida's Forgotten Coast."
The St. Joe Co. is now a developer and owns some 700,000 acres of undeveloped Florida land mostly in the Panhandle, making it the state's largest private landowner.
St. Joe donated the 4,000 acres to relocate Panama City's existing airport and owns 78,000 acres of undeveloped property surrounding the new airport.
The state, with the help of a land donation from the St. Joe Co., recently rerouted four miles of U.S. 98, the major east-west coastal highway, to improve the traffic flow in the area and make way for development. High-end vacation homes began replacing motels and recreational vehicle parks a decade ago. In sleepy Port St. Joe, trendy interior decorating stores have opened near the local Piggly Wiggly.
"We aren't forgotten anymore," said Brad Hart, a commercial painter who has lived in the area for 30 years. The national mortgage crisis has slowed the bulldozers and construction cranes, but building continues.
The airport has withstood legal challenges from environmentalists, a local pilots group and others who have argued it is unnecessary and will destroy environmentally sensitive wetlands. The lawsuits continue, but the future of the new airport — the first since Sept. 11, 2001 — appears increasingly certain to both supporters and opponents.

"We did our battle and we were unsuccessful," said Fred Werner, a Panama City pharmacist and amateur pilot whose organization, Friends of PFN — the FAA's designation for the existing Panama City airport — sued to block the new airport.
Werner objects to the airport as a "corporate welfare scheme," which he says will benefit the company in future decades by ensuring tourists easy access to the region. The project will also force tax dollars to be spent extending roads, sewer lines and other infrastructure to St. Joe-owned properties surrounding the airport, he said.
Proponents of the airport relocation, including the St. Joe Co., argue the existing airport's runways are restricted by St. Andrews Bay, that it's vulnerable to flooding in tropical storms and hurricanes, and that the area needs a larger, regional airport capable of handling international flights for long-term growth.
St. Joe Chairman Peter Rummell said the airport is key in the company's long-term strategy to maximize the potential of its vast northwest Florida land holdings.
On a recent Friday afternoon, campers played horseshoes at the El Governor RV Park in Mexico Beach. Their motor homes were parked on a vacant lot overlooking the white-sand beach and turquoise waters stretching below the nearby El Governor Hotel. But campground manager Jerry Metz fears beachfront camping is part of a bygone era.
"You never know what the economy is going to do, but I'm assuming it will go up and then all of this stuff is going to sell," he said, sweeping his hand toward nearby vacation home and condominium projects.
These aren't the high-rise condos of Panama City Beach.
They are homier and built in the local architectural style using a clapboard design with brick driveways and white picket fences. They are designed to appeal to a wealthier market than the traditional Panama City Beach crowd.
Finding a place to park an RV along the Forgotten Coast isn't as easy as it used to be, said Metz, who estimates there are only two or three such places left in the region.
Camper Walter Pumphrey enjoyed riding his Harley-Davidson along the winding beach front highway with breathtaking ocean views. But the highway has been rerouted around Windmark, a vacation home development under construction by the St. Joe Co.
Motorists now drive through a thick pine forest until they reach the town of Port St. Joe, but plans call for an additional section of highway to be rerouted and bypass Mexico Beach.
"Right now, only 8 percent of the people that come to these beautiful beaches are flying, St. Joe Co. spokesman Jerry Ray said. "Millions of people come down here every year, but most of them drive. What [the airport] means over the long, long term is that this is a marketplace that will broaden."
Take Care,

Zach Childs

CNN Money-Beach House Bargains

2008-03-14T05:20:00.000-07:00

Beach-house bargains - Mar. 13, 2008

There's Activity in the Market

2008-03-12T11:49:00.000-07:00

The News is full of stories about the troubled economy, inflation, recession, and falling housing prices. It is very impressive to see how many people are taking this “bad” time in the economy to buy coastal property. There are 139 properties from Mexico Beach to St. George Island that have already closed in 2008 or are under contract. Even more impressive is how active the high-end market has been. 41 of these properties have been over $500,000 and 16 are over $1,000,000 http://rafsg.net/RAFSGReports/listings.asp?ID=1206120588. Yes, people are purchasing $1,000,000 houses that were once worth close to $2,000,000. It’s still a lot of people investing a lot of money right now in this market. It’s shaping up to be the most active year since prices started declining in late 2005.
I’m not saying the market is going to fly back up. I am saying that if you can get a good deal on a property that you like and want to use, it’s time to buy. I was interested in purchasing 3 of the different properties on the market this year. All 3 went under contract while I was hoping they would go a little lower http://rafsg.net/RAFSGReports/listings.asp?ID=1206120596. Those of you looking for a good deal on a Gulf front home between Mexico Beach and Windmark know that there were only 4 good deals coming into the year. Now all 4 have sold or are under contract http://rafsg.net/RAFSGReports/listings.asp?ID=1206120589. The next best deals start $200,000 higher and both of the gulf front homes available in Windmark will be off the market. I’m actively involved in the Gulf front market and I or another agent at Port St. Joe Realty have sold or listed 4 out the 6 Gulf front homes that have sold. http://rafsg.net/RAFSGReports/listings.asp?ID=1206120594. I’m interested to see what the next buyer has to pay in this niche market. I had to write that. The next day the house I am living in went on the market at a great price: http://rafsg.net/RAFSGReports/listings.asp?ID=1206120821
Interest rates on a 30-year mortgage are down in the upper 5% range. This lower cost of borrowing already has more people looking at properties. Many are looking from an investment standpoint and want high rental potential. Their thinking is to buy while the market is down and rent aggressively-short term, then sell when the market goes back up.
We are also getting a boost from cash buyers due to the interest rate cuts. With new CD’s only paying 3.5% and a stock market that could scare anyone, people are looking at depressed real estate prices as a good investment option. We are starting to see very conservative cash buyers that have known the market through the ups and downs buying again.
Are we starting to see foreclosures? Yes. Are the best deals properties that have been foreclosed on? Sometimes. Most of the foreclosed properties have balances owed to the banks that are much higher than they can sell for. A few banks have taken sizeable losses and a handful of foreclosed properties have turned out to be great deals for the buyers. What we are seeing more of than foreclosures, are “short sales”. Sellers are selling for less than they owe on their mortgages and are working out terms with their banks that allow them to sell. Of the 23 properties that have sold this year or are under contract in the Mexico Beach/St. Joe Beach area, at least 9 have been foreclosures or some type of short sale: http://rafsg.net/RAFSGReports/listings.asp?ID=1206120591
I need to be clear; there aren’t a ton of great deals on the market based on asking prices. Only a few of the sellers are willing to ask these lower prices. That makes it easy to pick the best deals and 16 out of the 23 properties that have sold or are under contract were featured in my top 25 @ mexicobeachsales.com before they went under contract. Here’s a link to see all 23: http://rafsg.net/RAFSGReports/listings.asp?ID=1206120592 . (Notice only 3 vacant lots have sold or gone under contract) The only way to find out what the sellers will take is to make an offer. I helped a set of Gulf Front buyers find a great place this year. They were able to be patient and negotiate with the seller who ended up taking $470,000 less than his asking price! The lesson here is to not be scared of a big asking price. It’s a great market to make offers on the property you want. I updated my Top 25 picks today and have added new info to mexicobeachsales.com this morning.
Sellers: There’s no question it’s a tough market and you have a lot of other properties to compete against. People are looking to buy the deals and there will be 50, 60, 70, maybe 80 properties that sell this season. If you are looking to sell, you need to have your property on the market from March through August. This is the time of year that the most people are here and the market is most active. If you would like to discuss your situation, call or email me anytime. The full blown marketing campaign for Port St. Joe Realty’s listings is very impressive and starts April 1st.
You missed a good time if you missed the Gumbo Festival. The weather was perfect and there was a grand turnout. I can’t take any of the credit, but Port St. Joe Realty won the non-restaurant division beating out 25 tasty gumbos. Thanks to our team and everyone that helped to put on another great event in Mexico Beach.

Take care,

Zach Childs

St. Joe CEO Video from CNBC

2008-02-21T15:25:00.000-08:00

I thought this was a good interview of Peter Rummell. He takes questions about the Florida Real Estate Market.

http://www.cnbc.com/id/15840232?video=656229452&play=1

Thank you for 2007

2008-02-06T14:02:00.001-08:00

I sent this out in early January. Please email me if you would like to be added to my monthly e-newletter.

I hope everyone enjoyed the Holiday Season and shares my excitement about 2008. The market was great for buyers with a huge selection at reduced prices. I’m preparing a thorough summary of the market in 2007 that I will send out on Monday.
I’d like to say “Thank you” to everyone that worked with me in 2007. I was helped by a number of people and can’t thank everyone enough for their assistance during the year. I have a great team of co-workers, closing agents, bankers, attorneys, appraisers, insurance agents, and problem solvers at Garlick Environmental that work very hard to provide great service and results.
It was a tough year for most Realtors and I was extremely fortunate to have a productive year. I had 21 closings in 2007 totaling just under $6,000,000. ($47,500, $59,000, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $81,500, $83,000, $175,000, $375,000, $450,000, $651,000, $899,000, $1,060,000, and $1,200,000)(Not all on MLS) I’m very proud that only one other agent closed more deals in the Mexico Beach Area.
I’ve stayed honest and realistic with sellers and did not promise more than I thought I could deliver for them. I did not get nearly as many listings as my competitors, but a higher percentage of my listings closed in 2007 than any other agent. My strong commitment to finding new buyers allowed me to have the 2nd highest number of closings even though 30 Realtors have more listings than I do. My personal marketing along with Port St. Joe Realty’s marketing is as effective and thorough as anybody’s in the business. If you are serious about selling, please talk with me.
My fellow agents at Port St. Joe Realty have the most extensive knowledge of the market and it is a pleasure working with them. We have a lot of new, exciting ideas for 2008 and are already off to a good start with well over $4,000,000 already under contract. I look forward to improving and working with you in the future.
Thanks again and Happy New Year,

Zach Childs
Port St. Joe Realty
850-819-0833

2007 Market Report: The Year of Educated Buyers and Price Reductions

2008-02-06T13:52:00.000-08:00

I send out a monthly newletter. The property links in these emails only work for a few weeks. I sent this out on January 3rd. Please let me know if you would like to be added to my newsletter list.

2007 was the year of educated buyers and price reductions. It became clear to sellers that they would not be able to sell for the high prices of 2005. Sellers had to reduce fast enough to be one of the best deals on the market. They competed against a high number of other sellers for the limited number of buyers in the market. Only about 1 out of 6 properties on the market sold in 2007. Buyers were doing their homework and forced sellers to negotiate. I did pick over 50% of the properties that sold and featured them on my http://www.mexicobeachsales.com/ before they sold.

The reductions were enough to make buyers act. The number of sales was up 67% from 86 sales in 2006 to 144 sales in 2007. Many buyers had been watching a particular property be steadily reduced since August of 2005 and they purchased at huge discounts in 2007. The biggest reductions were definitely seen on vacant lots. Lots that once sold for $2,000,000 were sold in the $600’s and lots that sold in the low $200’s went as low as $59,000. Windmark Beach lots have had to take the largest reductions. Residences did not have to reduce as much, but 30% to 40% reductions were not uncommon. It was a typical year with the Summer having the most sales; the exception was a large number of new condos that closed in February when they were completed.

What Sold?

Vacant Lots: 39 Sold, 189 are still on the market.
16 of the sales were for under $100,000
Only 7 sales were for over $200,000, all of which were located in Windmark Beach.
All Sold Lots: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110014

Residences: 104 Sold, 318 are still on the market.
38 Single family homes sold from $120K, including 4 gulf front homes from $850K
Single Family Solds: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110017
12 Mobile Homes: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110016
45 New Condos: The majority of these had been under contract since as early as 2003.
Condos Closed in 2007: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110018
Townhouses, other: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110019

12 properties are under contract: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110068

Other Areas
Cape San Blas:
20 Lots Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110025
35 Residences Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110026

St. George Island:
17 Lots Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110072
33 Residences sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110077

Port St. Joe:
11 Lots Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110071
32 Residences sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110079

Carrabelle:
20 Lots Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110073
30 Residences Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110076

Apalachicola:
11 Lots Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110074
22 Residences Sold: http://rafsg.net/RAFSGReports/listings.asp?ID=1206110075

PSJ Realty agents had over $15,000,000 in sales for 2007!

Take care,

10th Annual Gumbo Festival- Feb 16th

2008-02-05T12:04:00.000-08:00

I plan to use the blog to let people know about the fun events in Mexico Beach. The Gumbo Festival is one of my favorites. It's a fun gathering in Mexico Beachd at Sunset Park. Sunset Park is right next to the El Governor.

There were 25 plus teams that made some of the best gumbo I've ever eaten last year. Hundreds of visitors enjoyed live music, great gumbo, and cold beer. This year should be better than ever.

This link will you to a page to see pictures from last years event:
http://www.mexicobeach.com/cdc/PhotoAlbumDisplay.cfm?Category_ID=25#cat

Starting a Blog.......

2008-02-05T11:40:00.000-08:00

Here we go. I've had a number of people ask me to start a blog about the real estate market. I will do my best and welcome all comments and suggestions.

The True Market- Mexico Beach FL to Cape San Blas Real Estate

Happy Holidays - Mexico Beach to Cape San Blas Market Report

St. Joe Company Announces 98 Real Estate Group as the Chosen Windmark Beach Brokerage

Good Summer - Mexico Beach to Cape San Blas Market Update‏

It's Summer and There's Lots to Do- Market Update‏

Late Spring Market Update-Mex​ico Beach to Cape San Blas-98

Spring Market Update- 98 Real Estate Group

Fortune 500- CNN Money Article about JOE- Windmark

Happy New Year-Mexico Beach to Cape San Blas Market Update & More

Fall Market Update

Market and Oil Update- Our Coast is Still Clear

Mexico Beach to Cape San Blas-Sales Way Up-New Hospital & Airport-Oil?

Happy New Year- 311 Sales in 09' and What to Expect in 2010

Turtle Rescue in St. Joe Bay

Summer Recap-Sales Volume Up & 68 Properties Still Under Contract

Happy 4th of July- Market Update

Early Summer Update, Foreclosure Websites, Auctions

Early Spring Market Update

2008 Market Recap and Good Start to 2009

Season's Greetings, Foreclosures and Eagles on the Beach

Fall Market Update

Sacred Heart Hospital Update

Gustav- No Damage, Cool Surfers

Fay and Market Update

Mid Summer Market Report

Market Update and AJC Article

CNN Money-Beach House Bargains

There's Activity in the Market

St. Joe CEO Video from CNBC

Thank you for 2007

2007 Market Report: The Year of Educated Buyers and Price Reductions

10th Annual Gumbo Festival- Feb 16th

Starting a Blog.......

Late Spring Market Update-Mexico Beach to Cape San Blas-98