Market and Oil Update- Our Coast is Still Clear

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?

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

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

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

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 Pass9 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

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

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