Destin Florida Homes - A Real Market Bottom in Action

Last year, when someone asked, it was easy to sum up the Destin Real Estate Market.  Generally speaking, there was a surplus inventory of homes and condos for sale in Destin accompanied by lackluster buyer interest, rapidly decreasing prices and anxious sellers.

I still get the same question today but the answer requires a more thoughtful response.  For a variety of reasons, buyers have come back in to the market in full force.  However, they are discrimating and all price ranges aren't seeing the same activity.

The "sweet spot", the price range that accounts for approximately 80% of Destin home sales is important to understand.  In 2008, this range extended to all homes priced below $600k while in 2009, the range includes sales up to only $500k.  The graph below illustrates some key statistics of the sweet spot.

 As you can see, not only are Destin home sales in this range at a pace of 30% more than last year, the inventory of homes for sale has dropped to just 9 months.  Clearly, for homes in this price range, we are quickly approaching a normal market.  In fact, we quite possible could already be there.

For homes above the sweet spot, the story is considerably different as can be seen from the graph below.

While home sales have increased a remarkable 32.4% year over year, there has been only a marginal reduction in supply.  For example, at the end of June '09, there was almost 68 months of homes available for sale.  This price range still has some work to do on the bottom.

If you are a looking to buy one of our many Destin homes for sale, then the statistics have the following implications:

Budget less than $500k

• The quality of homes available is decreasing with time.  If you see what you like, buy it.
• Don't expect sellers to be as negotiable as last year.  They don't have to be.
• Expect competition from other buyers including mulitple offers on well priced properties.

Budget greater than $500k

• There are some high quality homes owned by extremely motivated sellers.
• Negotiate agressively because you can.  Expect deep discounts and concessions in some instances.
• Buying activity is increasing and inventory levels are decreasing.  Don't procrastinate! Your advantage will not last forever.

The bottoming process in real estate is distinct among various property classes, varies from location to location, and is dependent on price.  If you have been waiting for the bottom to buy, now is the time to start looking.  If you don't, you may miss the boat!

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