HOMES SALES UP IN OKALOOSA AND WALTON COUNTIES IN FEBRUARY

If you have been following my Blog, I had predicted this and expect we will see a greater increase in the upcoming months. I have illustrated in recent months that we have a unique housing market. Supply and Demand is the key. First, Eglin AFB reduced their housing supply from approximately 2750 homes to about 1200 homes in the last year with no mandatory assignment. This is huge; Second, the normal transfer season for military; Third, prices have attracted folks of the north to invest in the south; Fourth, 7th Special Forces folks have begun to arrive and make housing decisions; Fifth, the Joint Strike Fighter Training has begun and their folks are arriving; Sixth, a number of Defense Contractors are repositioning themselves in our area; Seventh, the Crestview Industrial Airpark is growing; Eighth, we have had no substantial home building in the last few years, Nineth; the Short Sale/Foreclosure market is not attractive for most of these folks, who need a home NOW. It is my opinion, if you take these points only, you will see a great upswing in the next 18 months, if not longer. As I said before, we are not a secret anymore. THOUGHTS FROM A FORMER MILITARY HOUSING DIRECTOR.


Home sales up in Okaloosa and Walton in February
Dusty Ricketts
2010-03-23 22:16:28

Real estate markets in Okaloosa and Walton counties are off to a good start this year, and a local economist believes the worst of the housing slump is over.
Metro Market Trends recently released sales figures for Okaloosa, Walton and Santa Rosa counties for February.
Single-family home sales in Okaloosa and Walton counties increased 31 percent and 9 percent, respectively, compared to February 2009. Condominium sales increased by 75 percent in Okaloosa County and by 82.35 percent in Walton County.
David Goetsch, a local economist and Northwest Florida State College’s vice president for community relations, said he believes the worst of the real estate downturn is over.
“What you’re beginning to see now is a slight upturn,” Goetsch said. “This is standard. This is what always happens in a recession, it’s just that it’s taken way longer in this recession for this to happen. When it starts turning around like this, what happens at first is there are a lot of houses for sale. Nice houses going for comparably low prices. Good time for buyers, bad time for sellers. That usually turns around fast. It won’t turn around fast this time.
“We still probably have at least another year of a buyers market,” Goetsch added.
While the new year has started off strong for Okaloosa and Walton counties, sales fell in Santa Rosa County in February compared to last year. Single-family home sales in Santa Rosa fell by 6.72 percent last month compared to February 2009. Condo sales fell 22 percent.

Despite the increase in the number of sales in Okaloosa County, property values have fallen so much that the total dollar amount fell by 2 percent compared to February of last year. Property values also have fallen in Walton County, but not to that level.

On average, Goetsch said houses that sold for $100 to $125 a square foot two years ago are selling for $88 a square foot now.

The three counties continue to see a large number of foreclosed homes on the market. Goetsch said that inventory must be sold off before the market can return to anything resembling normalcy.
“You’ll see those prices start to creep up, but you’re still not in a place where if you wanted to sell a house you’d want to sell it now,” Goetsch said. “You’d do a lot better if you could hold on to it for a while.”
Goetsch said sales in Walton County were better than other parts of the state because South Walton attracts people who are less affected by the recession.

He attributed Okaloosa County’s improved sales to growth at Eglin Air Force Base related to the Army 7th Special Forces Group (Airborne) and the F-35 Joint Strike Fighter program. “Don’t be surprised that Okaloosa is showing a slight upswing,” Goetsch said. “We’re going to go up before others go up and we’re going to go up faster than others go up because of the military influence. We actually already have a small number of people trickling in now to do the preliminary work for the 7th Special Forces and the F-35.”