Destin Florida Real Estate - 2008 Market Summary
The Destin Florida real estate market had a rocky road in 2008. There are some glimmers of hope, but continued signs of price declines. In summary:
1. In Destin, the "% Sold/List" (Sold to List Price Ratio) dropped from 90% to an average of 84% by the end of the year. The ratio bounced around a lot during the last 12 months, but the drop to 84% may or may not be part of a trend. We'll look at this in coming months.
2. The average sale price for Destin real estate dropped from $520,000 to $406,000 in the past year. Again, this figure may not necessarily be a trend, as the average sold price was as high as $637,000 in June.
3. The median sale price dropped in Destin from $350,000 to $263,000. Note the "median" statistic may be more indicative of market trend than "average", because "median" indicates that one-half of the sales were higher and one-half were lower. An "average" may be skewed higher due to some more expensive home sales that affected the the resulting figure.
4. The MLS (Multiple Listing Statistic) report indicates 230 days average market time for Destin houses, condos and townhomes. This figure is inaccurate, it is low. It only tracks the last listing period of the sold home. If a property were listed multiple times and failed to sell during those times, that is not reflected in the figure. Many Destin homes were listed more than once until they finally sold, and even "re-listed" by the same real estate agent.
5. The "Months Inventory" figure is my favorite. Months inventory indicates how many months it would take to sell all the improved properties in the Destin real estate market at the current rate of sales. Note the year started at 68 months inventory, or almost 6 years! It ended at 48 months inventory, or 4 years! This figure is low, because our Emerald Coast Association of Realtors tracking only looks at the last, successful listing period. Additionally, the months inventory statistic has bounced around a bit. In basic terms, a 4 year inventory means there are a lot of properties for sale, and they are not selling very fast.
6. Finally, the inventory of Destin homes for the year started at 3475. By December, the inventory had dropped to 3225. The inventory reduction has been consistent for the last four months. That may good news for sellers. Typically, however, inventory increases in January when sellers decide to put their properties on the market after the holiday season.
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Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
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Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Crestview, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she negotiates successfully to her clients' advantage. She is supported by a team of top buyer specialists. She lists and sells homes, condos and townhomes in and around Destin Florida. Wendy is in the top ½ percent resale agents on the Emerald Coast for listings sold 2008.
All Rights Reserved. *Destin Florida Real Estate Market Summary - 2008* Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2009 by Wendy Rulnick.
This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.
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Hi Wendy, This is a very clear and precise report. The spread between avegare and median sales price is quite large. Is this because of more lower priced sales or more higher priced sales?
Great info. I will be interested to see how this info relates to my area in North Idaho. I will be posting this soon.
I also wanted to point out the 10% difference between list and sold price. That too is an indicator of steadily declining property values. It looks like your market is still far away from finding the bottom of the decline.
Wendy this is a great summary of the market in your area. I like how you have put this all together with a nice chart to document what has gone on month to month.
Bryant - That is exactly why the median is lower than average. Destin has some multi-million dollar properties that will bring up the overall average. I think we are far away from stabilization in the Destin market. The overall Emerald Coast market has about a two-three year inventory. Destin is so focused on resort, second home and investment, it is the "secondary" concern for buyers and sellers who may have real estate recovery issues in their home states. Thanks for looking closely, but you're scaring me! :)
Kent - Let us know about your area, too.
Thanks, Bill. I appreciate it. The chart doesn't look so good when I recreate it on some other blog sites like wordpress and blogger, unfortunately. I love this particular report and look at it often when explaining the local market. My favorite stat is "Months Inventory"- it tells the dire story. Also infomative is the percentage of homes that sell each month. I might add that to the post. 2% of the inventory sells each month. That puts things in perspective when guiding a seller toward proper pricing!