What a crazy year 2009 was for Real Estate! It is already January 8th and I have almost long forgotten 2009. The good news is that across the nation and locally the lag in home sale transactions is over and the rate of price declines has slowed. The bad news is that we continue to see a large number of distressed property transactions such as foreclosures and short sales dominating the South Walton Real Estate market.
Short sale and foreclosures will be a significant part of transactions for 2010 especially for Condos, Residential Land and Commercial Real Estate. These three market segments have been lagging on recovery compared to Single Family Residential Homes. Panama City Beach Condos Market Analysis for 2009
30A Combined Residential [Single Family Homes, Condos and Town homes] had a 17% decrease in new listings and a 40% increase in transactions in 2009 from 2008. One of the biggest indicators to watch for in 2010 is the massive 300% increase in short sale and foreclosure transactions. This number will continue to grow in 2010.
WaterColor had a strong year of sales in 2009 with 31% increase in home sales compared to 2008 and a 750% increase in foreclosure and short sale transactions. WaterColor will continue to be a strong resale community and will have a large number of distressed residential lot sales in 2010. Click here to look at WaterColor Real Estate for Sale.
Single Family Home sales in the Emerald Coast MLS saw strong gains of a 23% increase in transaction volume and a 14% decrease in new listings from 2008. The great news is that inventory on hand went from 23 months in 2008 to 17 months in 2009 which is a 26% decrease from 2008. Currently we have 3,900 single family homes active in the MLS and had 3,890 homes sold for 2009. If we continue to see a slow down in new listings, inventory will continue to deplete as predicted and get into a manageable 12 month on hand of inventory. Distressed inventory including short sales and foreclosures for single family homes will continue to be a major influence on the overall market.
2010 should see significant changes in Residential Land. We are beginning see major price reductions many areas such as Forest Lakes, Grande Point, Draper Lake, and WaterColor as examples where attractively priced lots are being snatched up. This reduction in lot prices has been spurring on a flurry of lot sales and we will see an increase in new construction in 2010 and 2011 as inventory for single family homes dries up and lot prices continue to fall.
2010 will have a significant increase in Lis Pendens and foreclosures as unemployment continues to rise and the Obama Making Home Affordable Programs run their course. Many lenders had put moratoriums on foreclosures in 2009 while analyzing which home owners could participate in the bail out programs. As lenders work through the volumes of mortgages in default we will see an increase in foreclosures and bank owned property.