Beach-house bargains - Mar. 13, 2008
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Friday, March 14, 2008
Wednesday, March 12, 2008
There's Activity in the Market
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.
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
Thursday, February 21, 2008
St. Joe CEO Video from CNBC
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
http://www.cnbc.com/id/15840232?video=656229452&play=1
Wednesday, February 06, 2008
Thank you for 2007
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
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
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,
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,
Tuesday, February 05, 2008
10th Annual Gumbo Festival- Feb 16th
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
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.......
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.
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