Destin Real Estate Market Statistics

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.

The post Destin Florida Real Estate Market Summary 2008 first appeared on Rulnick Realty.

I received an offer on one of my Destin FL short sale listings.  It was a well-done contract with a fair price- $270,000- just slightly low, but in the realm of “workable” for acceptance by the short sale lender, Chase.  The selling agent said the buyer was a single school teacher, and he provided a pre-approval letter with the offer.  My seller was excited and signed the purchase agreement right away.

The next day, while finalizing my short sale package, the seller called my office with potentially disturbing news.   He said his neighbor mentioned to him at the mailbox, that she received an offer on her own identical floorplan short sale home- from the same agent on the very same day, from the same buyer, the “school teacher”.  The neighbor happened to be a real estate agent.  Concerned, I immediately called the buyer’s agent.  “Is this the same buyer? Does he really intend to buy two homes? Or is he playing games with my seller’s time and my time, waiting to see which offer was accepted and a better deal from the respective short sale lenders?  Would he use the ‘as is with right to inspect’ clause as an out on buying the house he didn’t want? Does he understand both of these properties had to go into ‘pending’ status with our Board of Realtors?” 

Very dismayed, I got uneasy answers from the buyer’s agent.  He said with a chuckle “Yes, he would buy both homes if both were accepted. (On a teacher’s  salary?) Oh, and don’t you know, Wendy, that this is what you should do anyway, this will help you out to see what the bank will take.  This is how short sales are done”, he instructed me.  I explained to him that both houses had to go under deposit per our board rules, and if the buyer was really playing games, there would be serious consequences for one of the sellers.  I hung up the phone and called the neighbor, the real estate agent.  She told me her suspicions were the same as mine, that the buyer was basically using each seller, and that she had unfortunately signed her offer, too.  She was going to speak with her attorney.  I called my seller, and he said he did not want to proceed with the contract unless the buyer decided “which home” he wanted, and to tell the agent to tear up the other contract, or he might have an ethics violation.

The analysis of this situation is indeed disturbing.  The buyer has every right to make an offer on as many properties as he wishes to purchase.  He also has a built-in “out” with the inspection clause, and can easily trump up an acceptable defect to nullify any contract.  But, is his intent legal, if he cannot perform on all his contracts?  This story has yet to be completed.  When I left my last message with the selling agent, his voicemail said, “Thank you for calling Josh, your ‘honest’ Realtor in Northwest Florida.  God bless. ” 

The post "Sly" Short Sale Buyer – A Cautionary Tale first appeared on Rulnick Realty.