Hello to all our friends and customers ‘sheltering at home’ wherever you may be.
We are all currently experiencing a new normal, which for me means working at home with my wife, home-schooling kindergarteners and having Disney + as a full-time babysitter for my 18-month old
As your agents and real estate experts along the beach, we have spent time looking at the most recent data available, thinking about what effect the current situation is having, and identifying key insights to consider. In this Real Estate Update, I walk through what I consider a few of the most important data points to help you ‘see what we are seeing.’
Comparing Q1 2019 data to Q12020 data for the 30A, Miramar, and Destin markets, here are the highlights:
Q1 2020 was strong. Q1 2019 vs. Q1 2020
Year on Year Comparison Sales shows the actual number of units sold was up, as well as, the dollar volume. Prices were up, in some cases by 25% or more. We sold more units (homes/condos) for more money than last year with less inventory than 2019.
Pending Contract Sales, a leading indicator of what’s to come, is showing a ‘wait and see’ approach. Anecdotal evidence was showing buyers, many of whom were unable to travel to the area, were increasingly saying they were ‘going to wait and see what happened next’ and the pending contract sales data supports that view. Each area 30A, Miramar and Destin were drastically under their 2019 pending marks for March.
In the next Real Estate Update, I will be looking at additional metrics for insight:
# of New Listings coming to market. This will help us see if sellers are also starting to take a “wait and see approach.”
Cancellations, withdrawals, the total number of new listings, and the rate new listings come to market will provide insight in the coming months. This refreshing of the pipeline will impact the overall number of properties on the market.
Sale Price vs. List Price comparison will also be a key metric. Historically, property in our area has been able to command no less than 95% of list price, so it will be interesting to see if sellers accept lower offers in order to get a deal done.
I hope this review is helpful. As someone who has been selling homes for a number of years along our coast, and sold properties through the 2008 recession, I believe it is important to stick to the real numbers everyone can see, rather than enter into trying to predict the future, especially in such uncertain times. The data we used includes primary residences, second homes or investment residential properties; the primary driver of our real estate market.
If you have any questions about this report or would like to discuss your property or your search please contact one of our agents - we are here to help guide you through the process of buying or selling property along our coast and in our communities and neighborhoods.