Destin Florida Condos - Market Update

The new year brings the promise of spring and the traditional upswing in buyers interest. Buyers looking for deals this year have begun sorting through all condos for sale looking for the right property and the right price.

Condo Inventory High but Falling. There are currently 3,313 condos for sale in our local area. Inventory is down 10% from the same time last year. The gradual decline is indicative of a slowly changing market. Our property summary table below shows the distribution of the home inventory across the geographic markets of our area.

Strong Buyer Market Will Persist. Although the high inventory and rate of condo sales spells more bad news for sellers, it is good news for buyers. Condo buyers looking for a bargain can expect to be rewarded, especially in the next few months as winter markets are the best markets for buyers in beach front communities like Destin.

Destin Condo Sales Slow, but Not Stagnant. While the market is slower than normal, it is far from stagnant with an average of 111 new and existing condos sales per month. If you find that perfect beach property - go for it. Don't count on it being available later. Don't confuse "slow sales" with "no sales" and remember that there are likely to be other bargain shoppers looking at the same property you are for all the same reasons.

True Bargains are Scarce. Buyers searching for bargains must do their homework. Real bargains are scarce, but smart buyers are the rule these days and they seem to have a way of finding them. Seller's who price carelessly receive no attention and quickly become frustrated as the time on the market grows. Sellers who price well, however, are rewarded with a quick sale from bargain hungry buyers.

Condo Value Trends. Statistics show condo values along the coast have adjusted downward 30-35% from their market peaks in mid- 2005. Although a slight downward trend continues, recent decreases in interest rates, property taxes, and hazard insurance are beginning to lessen the cost of ownership and assert a positive effect in our local market tempo.

What does this mean to condo buyers and sellers? The higher than normal condo inventory will likely sustain the current buyer's market throughout the upcoming year. The rate of downward momentum (the rate of which prices fall) is diminishing by most analytical accounts.

1. Sellers should be prepared to price aggressively to catch the interest of buyers in our high-inventory market. Make certain you are the lowest comparable price in your condo complex if you want to sell.
2. Buyers should choose their target property now to gain better pricing in a winter market where buyers are scarce. Although time is still on the side of the buyer, slowly improving conditions (lower property tax, interest rates, and insurance quotes) may end the prime buying opportunity earlier than originally projected.

Source : http://www.destin123.com/