BANNER YEAR FOR REAL ESTATE ALONG THE EMERALD COAST FOR 2011

This article was contributed to The Log by the Emerald Coast Association of Realtors.
In another banner year for real estate along the Emerald Coast, total residential units sold in 2011 increased by 24 percent over 2010 according to data from the Emerald Coast Association of Realtors. A total of 5,290 residential units were sold last year; 4,266 sold in 2010. The total number of units sold is the highest since 2005, one of the infamous boom years in real estate in the last decade. “I said throughout the year that the market was positive,” said Jean Floyd, 2011 ECAR president. “The year-end numbers show that, based on units sold, the real estate market is recovering.” While the number of units sold has steadily increased over the past three years, both the average and the median price of homes have fallen slightly in the past three years. When compared to 2005, the dip in price is much more dramatic. Looking at the units sold versus pricing trends over the past 10 years, the boom years caused a dramatic spike in the curve. Although units sold and prices have been lower than the 2003 to 2005 timeframe, current sales are higher than 2001 and 2002. It is clear that the number of units sold is on the rise, while prices have dropped and are holding relatively steady at current levels. The silver lining in the price drop is that homeownership has become more affordable. Couple lower prices with record-low interest rates, and purchasing a home in 2011 was a smart and affordable move for those able to buy. “Inventory is being absorbed,” said Floyd, “and although the average price was down about five percent from 2010, the market is only going to continue to improve.”
Looking at the individual categories, both condos and detached single family units experienced an increase in 2011. Condo sales along the Emerald Coast increased 32 percent and detached single family sales increased 18 percent in 2011 when compared to 2010.
Individual areas across the Emerald Coast fared well in 2011, as well. Destin sales increased 34 percent; South Walton County 26 percent; and Crestview 28 percent. All real estate is local, even between towns and counties. Crestview’s market was driven primarily by the 7th Special Forces moving into the area, while South Walton County and Destin increases were driven by condo sales which experienced greater increases individually than total residential sales. Destin condo sales increased 37 percent, while condo sales in South Walton County rose by 30 percent over 2010 sales. Looking to the future of the local real estate market, a full recovery will need more than one solution. One avenue to recovery in Florida is the international buyer.
“According to Florida Realtors, reports suggest that international home buyers are a significant component of the Florida real estate market,” said Judi Rutland, 2012 ECAR president. “Last year more than $82 billion of U.S. residential real estate was sold to a foreign buyer or recent U.S. immigrant. The housing recovery in Florida can gain a competitive advantage in serving multicultural clients from around the globe.” According to data released by the National Association of Realtors, using a Realtor to sell property fetched, on average, more than $50,000 per transaction in 2010. Working with a Realtor to purchase property allows for peace of mind that a professional is overseeing the transaction from start to finish. Whether purchasing or selling real estate, remember to rely on a Realtor.