Team Baranowski July 2011 Market Summary and Analysis for Scenic 30A

2011 has been a record breaking year for Real Estate along the Emerald Coast and especially Scenic 30A. This time in 2010 we were seeing the full affects of the BP Oil Spill hit our market. We still had some excellent numbers for July 2010. However, in 2011 we are crushing the numbers across the board not in only real estate but also in visitors to the beach, and rental bookings and revenue. Small local businesses are reporting that they are smashing all time revenue records as well during this peak season. With all the uncertainty in our economy and our national debt, it is refreshing to see that our little slice of paradise is slowly crawling out of the death spiral we have been experiencing since 2006.

Team Baranowski is having our best year on record and are very fortunate to work with fantastic clients! Let’s get down to the numbers and look at the 30A market Summary and Analysis for July 2011.

Overall the gains are huge! Contracts are up 45% YTD for Single Family Homes, Inventory on Hand is DOWN 46% to 10.75 months on hand! This is an incredible number as this time last year we had just under 20 months of inventory and a few years back over 36 months of inventory. The market is shifting slowly from a buyers market to a sellers market…however we still have a ways to go. We need to see a steady 6-8 months of inventory on hand to make it official.

Scenic 30A & Emerald Coast market Summary and Analysis for July 2011 pdf DOWNLOAD

Our two benchmark communities on 30A: WaterColor and Rosemary Beach are experiencing fantastic sales numbers. Rosemary Beach has 48 properties sold year to date versus 32 in 2010 and 8 in 2009! Over 6 homes have sold over $3mil in Rosemary Beach so far this year. Average sales prices are up 38% and price/sf is up 27% from $416/sf to $530/sf. There were a large number of gulf front homes sold in Rosemary Beach that are driving the price/sf up.

WaterColor is experiencing an excellent year for sale growth. Although there is mostly red on the chart, the most important number is the Green one that shows combined residential properties sold is UP 85% from 2010 with 61 transactions YTD 2011 versus 33 YTD in 2010.

Average sales price is down 6%, however from 2009 to 2011 the price has held steady right at approximately $1mil. WaterColor’s Phase IV is selling very well and offers a much lower price point for buyers looking to buy into the WaterColor Community.

July 2010 in South Walton Beach generated some interesting numbers…especially due to the oil spill. The Real Estate Market had a slight hick-up in transaction volume mainly due to buyers waiting to see what would happen with the BP Oil Spill. Once the oil leak was capped our phones began ringing off the hook with buyers jumping back into the market. Feedback from other Realtors was a similar experience. We continue to witness a full cycle market correction in many of the key anchor communities of WaterColor, WaterSound and Rosemary Beach. The market shift in WaterColor and Rosemary Beach continues as we predicted in early 2010.

In 2009 WaterColor experience dramatic price drops and the number of sales transactions increased. During this time, Rosemary Beach sales languished and were almost non-existent in 2009. One year later WaterColor has witnessed a 39% decrease in transaction volume compared to the same period a year ago!

On the other hand, Rosemary Beach had 300% increase in transaction volume year to date compared to the same period a year ago!

If you want to buy in Rosemary Beach…NOW is the time!

• Rosemary Beach 300% increase in homes sold year to date!
• Residential Land pending listings are up 59% year to date and lots sold are up 69% year to date compared to 2009.
• Scenic 30-A Combined Residential sales up 10% year to date 
• WaterColor is finding its way out of the market correction with a 5% in sales prices and 5% increase in price/sf year to date
• The OIL SPILL IS CAPPED AND NOAA SAYS OIL NO LONGER THREAT TO SOUTH WALTON BEACH!!!!

• The impact of the Deepwater Horizon Oil Spill impacted transaction volume in June and July softening our year to date numbers
• Distressed property is up in every category with increases in short sale and REO transactions
• WaterColor's sales transactions are down 39% year to date representing a shift in their market
• Residential land prices are experiencing a significant downward price correction of 30% year to date
• First time home buyer tax credit is over and impacted inventory moved from 11 months on hand in June to 19 months in July!

Scenic 30-A & Emerald Coast Market Summary and Analysis for July 2010 pdf Version

April 2010 in South Walton Beach was an interesting month. The Real Estate Market ran full steam through spring break and into Easter and right into May. The market correction we are going through in South Walton Beach is a fascinating dynamic to watch and analyze. Let's look at WaterColor and Rosemary Beach who have done a complete shift in their market from 2009 to 2010.

In 2009 WaterColor experience dramatic price drops and the number of sales transactions increased and WaterColor was the top selling community on 30-A. During this time, Rosemary Beach sales languished and were almost non-existent in 2009. One year later WaterColor prices have increased…or the great buys have been purchased and the current available inventory is at a higher price point…a 31% increase in average selling prices year to date for 2010 in WaterColor has created a 44% decrease in transaction volume compared to the same period a year ago or a 69% decrease from April of 2009!

On the other hand, Rosemary Beach had a 29% decrease in average sale price and a 750% increase in transaction volume year to date compared to the same period a year ago!

Fascinating how market dynamics work and how simple economics are at play along the Emerald Coast. Was 2009 the market bottom for WaterColor? Maybe. Is now the time to buy in Rosemary Beach? Absolutely!

We have one more big surprise that has the potential to literally muck things up…the oil spill. We are watching the situation very closely. As of right now the media impact has caused more damage than the actual oil spill in South Walton Beach. Currently, they are estimating that the oil spill will not reach our shores. But this can change daily and we will keep you updated.

• Rosemary Beach 300% increase in pending sales and 250% increase in homes sold for April 2010 and 750% increase in homes sold year to date! WOW!
• Residential Land pending listings are up 98% year to date and lots sold are up 97% year to date compared to 2009.
• Scenic 30-A Combined Residential sales up 31% year to date and pending sales for April are up 36% compared to April 2009
• WaterColor is finding its way out of the market correction with a 31% in sales prices and 13% increase in price/sf
• Emerald Coast Single Family Residential  pending listings are up 25%

• The impact of the Deepwater Horizon Oil Spill is yet to be determined on our Real Estate Market
• Distressed property is up in every category with increases in short sale and REO transactions
• WaterColor's sales transactions are down 44% year to date representing a shift in their market. Is it premature?
• Residential land prices are experiencing a significant downward price correction
• First time home buyer tax credit is over. Will this impact home sales?

Scenic 30-A & Emerald Coast Market Summary and Analysis for April 2010 pdf Version

March is the grand kick off for the Summer Real Estate surge that occurs every year. This March the numbers are very positive. It is exciting to see that our market is slowly rebounding and trending in a positive direction as we have predicted. If March is a benchmark for the rest of year, it would be fair to say that 2010 will be an outstanding year for Real Estate! An outstanding year would be a significant decrease in inventory, continued increase in transactions, a continued stabilization of sales prices, surviving the foreclosure surge and the new HAFA program streamlining short sales…that would be an outstanding year!

But don't take our word for it…let's look at the numbers! We are seeing much more GREEN in my monthly spreadsheets than RED…so this is a good thing.

1. Distressed Property continues to be a significant portion of sales and inventory as the number of foreclosures rise. Distressed property represented 32% of all transactions for combined residential sales in March of 2010 down from 62% in February!

2. Scenic 30-A Combined Residential Pending sales are up 19%, and sold transactions are up 58% compared to March of 2009 and up 56% year to date from 2009!

3. Single Family Homes for all of the Emerald Coast had a 36% decrease in inventory year to date compared to 2009 with only 12.48 months of inventory on hand! This is HUGE as we are closely approaching equilibrium for inventory! If you are a buyer, you have seen that your inventory choices are depleting rapidly! Once the great buys are gone…they are gone.

4. 2010 continues to be the Year of Land! I said this back in October of last year, land sales and prices are getting blown to pieces. Year to date pending sales compared to the same period in 2009 are up 129%, lots sold up 136%..Distressed land sales are up 321%…Average price sold is down 37%...percent of selling price to list price is 77%. This means land prices are still too high and will continue to adjust downward until we decrease inventory. We have 3,741 parcels for sale along the Emerald Coast with only 205 parcels selling YTD in 2010. If you looking to purchase land, now is the time to start searching for some fantastic deals!

Distressed Lots and Land under $235K

Distressed Lots and Land over $235K

Scenic 30-A & Emerald Coast Market Summary and Analysis for March 2010 pdf Version

February is always a volatile month for Real Estate…it is after the holidays…just starting the new year…before spring break…and can set the tone for the year for Real Estate. I have been looking deep into the crystal ball to see what 2010 will shape up to be and so far I have been spot on with my assessment:

1. Distressed Property is making up a significant portion of sales and inventory as the number of foreclosures rise. Distressed property represented 62% of all transactions for combined residential sales in February of 2010!

2. 2010 is the Year of Land! I said this back in October of last year and land sales and prices are getting blown to pieces. Year to date pending sales compared to the same period in 2009 are up 177%, lots sold up 135%..Distressed land sales are up 310%…Average price sold is down 42%...percent of selling price to list price is 78%. What this means is land prices are still too high and will continue to adjust downward until we decrease inventory. We have 3,674 parcels for sale along the Emerald Coast with only 120 parcels selling YTD in 2010. If you looking to purchase land, now is the time to start searching for some fantastic deals!

Distressed Lots and Land under $235K

Distressed Lots and Land over $235K

Scenic 30-A & Emerald Coast Market Summary and Analysis for February 2010 pdf Version

2009 set a solid foundation for a slow market recovery for the South Walton Beach and Scenic 30-A areas. January 2010 was an excellent kick off to hopefully a year of solid recovery to our ailing Real Estate Market. Rental bookings, rental rates and buyer activity have been very promising so early in the year. Savvy buyers are getting excellent deals on premium properties. Look for a steady increase in sales volume throughout 2010 and watch as we should be tracking strong market numbers all year! Also take a look at the most expensive homes sold on 30-A for January.

Scenic 30-A & Emerald Coast Market Summary and Analysis for January 2010 pdf Version

It is hard to believe that January 2010 has come and gone with Spring in the horizon. We will be publishing our monthly South Walton Real Estate Review towards the end of the week to see how the Real Estate Market is kicking off for 2010. Rental demand is high, bookings are coming in early for Spring and Summer and rates are holding steady. All signs are showing that we should have a great year for Real Estate and begin the slow and tenuous path to recovery. So far the most popular words from potential buyers are…"if I had known it would sell for that price I would have bought it." If you are waiting on the sidelines before you purchase that special property you have been watching for over a year…you may miss the best buying opportunity of our generation. The best deals and the premium properties are going…going…gone!

There were some excellent luxury home sales in the first month of 2010 and here is a quick recap of the Top 3 Most Expensive Homes sold in South Walton Beach:

#1 – 111 Little Redfish Lane. This exquisite lake front property was our featured luxury home pick in August 2009. This one of a kind home on Little Redfish Lake was an extremely popular home but only one lucky buyer was smart enough to snatch up this gem. Premier luxury properties like 111 Little Redfish do not come along very often and once they are gone…they are gone. 4,287sf was listed at $3,200,000.

#2 – 49 Rosemary Avenue. Rosemary Beach had a very slow start in 2009 with almost non-existent homes sales for the first 6 months. Prices finally began to fall and properties were snatched up by savvy buyers. 49 Rosemary Avenue was a spectacular Tom Christ designed home with majestic gulf views. 4,250sf was listed at $2,300,000.

#3 – 270 Garfield Street. If you wanted an incredible Gulf Front Home in historic downtown Grayton Beach for a steal…it is too late…and if you wanted an incredibly rare gulf front lot in historic downtown next to the house…it is also too late, as the buyer bought both the house and the adjacent gulf front lot at the same time. 3,717sf  listed for $2,495,000 and the lot was listed for $895,000. If you had been watching these two premier properties you definitely will be saying…."if I had known it would sell for that price I would have bought it."

There is never a better time to buy, with historic low prices and interest rates it does not get any better than this. Give Tracy Baranowski a call at 850.259.4270 or Craig Baranowski at 850.259.1788 or email  us info@teambaranowski.com and we can show you some the best deals in town!

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 and Emerald Coast Market Summary and Analysis for 2009 pdf version

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.

November 2009 proved to us that the market continues to recover with increased sales volume. In fact November saw a 44% increase in transaction volume for combined residential on the 30A Market which includes the South Walton East and Santa Rosa Beach South sections of the Emerald Coast MLS. More positive news is the 38% decrease in new listings for November 2009 which shows a continued history of declining volume. Increased transaction volume and decreased inventory is the magic recipe for a market turn around. We are going to keep a very close eye on the market during the December through February months which are traditionally slow. In influx of new foreclosures in 2010 may have an impact on inventory, however most Bank Owned Properties typically get snatched up with multiple offers the moment they hit the market.

Market summary & analysis for South Walton East and South Santa Rosa Beach November 2009

Unfortunately all of the naysayers about our market continue to get a consistent and empirical reminder that the market is working through our bad times and buyers are snatching up real estate at a steady and consistent rate . We have seen a consistent trend of increased sales volume as the prices have reduced. In any buyers market, when prices fall sales volume increases. Year over year we are seeing a consistent 33% growth in transaction volume.

WaterColor homes had a slow month in November with only 3 homes sold:

47 Royal Fern Way was a short sale and sold for $660,000

306 Red Cedar Way was a Bank Owned property and sold for $765,000

110 W. Summersweet Lane was a Huff Homes pre-sale in WaterColor’s Crossings District for $499,000 or $224/sf in WaterColor!

The most expensive home currently listed in WaterColor is 1942 East Co Hwy 30-A in WaterColor’s Gulf District for $3,950,000

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, mortgage rate analysis, and affordability index update.

Recent Government actions including:

• First-time Home Buyer Tax Credit Update
• Credit Score Impact of Loan Mods
• Freddie Gets Serious About Helping

Research for Byers and Sellers:

• Little Improvements Make a Big Difference
• FHA Loans Continues to Be Popular for Buyers

U.S. economy slowly mending as hope remains for sustained housing recovery.

For nine percent of Americans seeking employment, it’s tough going out there. But better economic data is expected in the third quarter, and this projected improvement should translate into a positive boost for the job market and, importantly, lead to broader economic stabilization. At the same time, the housing market remains under pressure from record rates of home foreclosures.

Currently, the housing market’s main lifelines include the $8,000 tax credit for first-time buyers and the Federal Reserve’s massive purchase of mortgage-backed securities. Both of these programs may be running their course, however, as the tax credit is due to expire at the end of November and the Federal Reserve is starting to taper off its purchase of mortgages. In lieu of these government actions, the best hope for a more sustained recovery in the housing sector is a more normalized balance of inventory. Such a balance requires continued stabilization in home prices across the country, which will likely take some time.

In the meantime, as long as mortgage rates stay low and housing affordable, there are buying opportunities to be had and willing and able buyers who will continue to absorb inventory. So while home sales slowed from their strong pace in July, they continue to be much higher than before the stimulus. Lawrence Yun, NAR chief economist said, “The recent trend shows broad improvement in most of the country, but with an expected rise in foreclosures over the next 12 months we need to maintain a healthy level of ready buyers to absorb the inventory. An extension of the tax credit is critical to preserve incentives for financially qualified buyers to enter the market.”

Among the positive developments this month are the jumps in new home sales, personal income and spending. Increases like these show the economy is improving, albeit at a slow pace. Personal savings dropped to about 3%, meaning consumers are actually opening their checkbooks again, while still maintaining a degree of savings. The unemployment picture still remains gloomy, but the rate of layoffs decreased for the fourth consecutive month—a good sign.

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, mortgage rate analysis, and affordability index update.

Recent Government actions including:

• Cash for Clunkers
• Phase I of Credit Card Bill Rolls Out
• Fed confirms commitment, Bernanke reappointed

Research for Byers and Sellers:

• Motivation for moving
• First-Time Home Buyers survey

Some economists believe that the almost two-year-long economic recession ended in June, and they’re forecasting a return to growth in 2010. So while the encouraging news points to prosperity ahead, the overall economy may continue to run into some road bumps along the way. In the meantime, the strengthening housing market indications bode well, as buyer confidence is increasing with affordability playing a big role.

Looking at existing home sales, the July numbers far exceeded expectations. In fact, for the first time in five years, existing-home sales have increased for four months in a row. That’s a lot of activity. So who’s buying, and what are they buying? First-time buyers continue to pace the market. They purchased 30% of homes in July. And distressed homes accounted for 31% of overall transactions.

The numbers indicate critical activity is occurring at the bottom of the property ladder, and this activity is triggering much-needed trade-up transactions. With the gains in sales, excess inventory continues to be absorbed. And with rosier economic forecasts for 2010, “the buyer psychology may be shifting from, ‘Why buy now when I can purchase later,’ to ‘I don’t want to miss out on a recovery,’” said Lawrence Yun, NAR chief economist.

An additional positive factor is the continued stabilization in housing prices. While prices are lower than they were at this time in 2008, home prices have risen from where they stood at the beginning of 2009. And that’s great news. As the prices hold more firmly, creditworthy borrowers are acting quickly to lock in near historically low mortgage rates. These rates, coupled with excellent affordability, make for an impressive buying opportunity for savvy investors sitting on the sidelines. “As long as home buyers stay within their budget, mortgage payments will be very manageable,” Yun said.On the broader economic front, while unemployment remains a major concern, the government has had solid success with its spending programs. The first-time home buyer tax credit and cash for clunkers automobile programs are considered great consumer successes. Additionally, a proactive Federal Reserve is working to keep interest rates at low levels as long as necessary. So while high unemployment will weigh on the economy for some time to come, governmental action, economic expertise, and time should deliver us to greener returns in the months to come.

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. August 2009 marks the last month of summer in 2009 and it was a very busy month for Real Estate transactions. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270.

CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate August 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, martgage rate analysis, and affordability index update.

Recent Government actions including:

• Fed’s latest support for the economy
• Key modification to Loan Modification Program
• Fannie Mae’s policy change concerning job transfers
• FHAs plan to expand capacity

Research for Byers and Sellers:

• Credit Scores Decoded
• Tips from myFICO.com on Credit Scores
• How to impress potential buyers in a competitive market

US housing market seeing growing light at the end of tunnel

The end of the meltdown may be in sight, but the long road to recovery will likely be a long one. The last 24 months have been a rough ride for the US housing market. Thankfully, federal regulation and fiscal policy have been effective in easing the impact of the great recession. And now many experts are citing encouraging signs that are driven by the summer seasonality of the housing market but may also point to stability. Take existing home sales, for example, which have increased for the fifth consecutive month. Also on the rise are home prices, an all-important indicator of stability. In today’s battered market, rising home prices translate to a more balanced supply and demand picture.

By all indications, the market still represents opportunity. The $8,000 first-time buyer tax credit is set to expire at the end of November, but remains a powerful incentive. While first-time buyers are active, more repeat buyers are also taking advantage of favorable mortgage rates and better prices. These two broad groups of buyers are absorbing excess inventory. Mortgage rates, which now sit between 5-5.5% range, are slightly above the record low of 4.78%. Thus they are still very favorable and represent an historic opportunity for qualified potential buyers. The housing affordability index also remains very strong, as prices are adjusted to levels not seen since the mid-2000s.

The overall U.S. economic scene looks a bit brighter as GDP figures came in better than expected for the second quarter. The economy declined at a pace of just 1% over the past quarter, a great improvement from the first quarter’s decline of 6.4%. Economists point to this a potentially strong signal that the longest recession since World War II is finally beginning to wind down. Looking forward, the GDP is expected to return to positive territory in the third quarter and increase further in the fourth quarter.

An increasing trend is American consumers’ movement toward real savings. Last month alone, the U.S. savings rate hit 4.6%, a marked change from the negative to 0% savings rate for the entire decade. Economists consider a savings rate of 5% beneficial for the long-term viability of the economy and housing market. With increased savings, lower consumer spending could result in a slower recovery, but might lay the foundation for sustainable growth in the future. With limited prospects of new job growth, unemployment will continue to remain in focus as the best indicator of broader recovery.

August 2009 was an amazing month for South Walton Real Estate. We personally had our busiest month all year and we are seeing all of our colleagues be equally busy and optimistic about the Real Estate market.  The market is slowly recovering with continued increases in sales volume and a critical reduction in inventory. Single family home prices rose from the same period last year by 25% but are still down 29% year to date. Below you will find market analysis for South Walton East and South Santa Rosa Beach area for Combined Residential (Single Family Homes, Multi-Family and Condos). You will also find single family home summaries for WaterColor and WaterSound.

Click for South Walton Market Summary pdf

Click for WaterSound Market Summary pdf

Click for WaterColor Market Summary pdf

Has the market over corrected? Are we on the fast track to recovery? I believe we are still in for a long recovery of the Real Estate market. Prices continue to stabilize and I believe have over corrected in some areas. Nationwide the signs of recovery are very strong and we will all watch the market closely as we approach the slower winter months.

Every month Keller Williams performs an in-depth analysis of the Real Estate Market. July 2009 was a critical month in Real Estate as July is typically one of the most busy months of the year for Real Estate transactions.. This presentation looks at the National Real Estate Market. If you are interested in our South Walton market or specific areas including Grayton Beach, Seagrove Beach, Destin, Sandestin, Rosemary Beach, WaterColor or WaterSound, please call or email Craig or Tracy @ Team Baranowski 850.259.1788 or 850.259.4270. CLICK HERE TO DOWNLOAD a pdf copy of the Team Baranowski – This Month in Real Estate July 2009 Report.

The detailed report includes: Home sale update, median home price update, inventory update, martgage rate analysis, and affordability index update.

Recent Government actions including:

• Fed’s latest support for the economy
• Key modification to Loan Modification Program
• Fannie Mae’s policy change concerning job transfers
• FHAs plan to expand capacity

Research for Byers and Sellers:

• Credit Scores Decoded
• Tips from myFICO.com on Credit Scores
• How to impress potential buyers in a competitive market

This month offers a lot of encouraging news for the U.S. housing market. Home sales have now shown a steady increase for four consecutive months. Housing inventory has decreased and home prices have edged up compared to last month.

Many economists still cite a recovery in real estate as key to economic stability—bringing more jobs, growth, higher income opportunities, and stronger, more stable tax revenues. The banking sector looks to stand on firmer footing as institutions begin repaying TARP funds. Yet the credit market remains tight, which presents challenges for mortgage applicants. Any sustained rebound will likely be tied to better credit availability for aspiring homebuyers.

Consumer spending has slowed as consumers readjust their personal balance sheets and increase their savings. And in the past month the U.S. savings rate has actually moved above the Canadian rate. While their saved money is not directly benefiting the economy today, restored financial health will improve conditions for sustainable spending in the future.

Given firmer stability in the housing and financials sectors as well as a shift to consumer saving, the overall economy appears to be on a slow track to improvement. While any signs of progress must be weighed against the potential road bumps ahead, sustained economic recovery over the next year is expected to come in piecemeal fashion. Some uncertainty factors include unemployment numbers, rising mortgage rates, and new appraisal rules.

June 2009 proved to us that the market is slowly recovering with increased sales volume. It also showed that our single family home prices are down from the same period last year. WaterColor homes represented the largest sales volume for the month of June. For a detailed analysis see below:

Market summary & analysis for South Walton East and South Santa Rosa Beach June 2009

There are no surprise here. We have seen a consistent trend of increased sales volume as the prices have reduced. In any buyers market, when prices fall sales volume increases. We will continue to see sales volume increase through the summer months and will closely track median sales prices and average price per square foot.

WaterColor homes represented the largest percent of sales volume for the month of June 2009 with 11 of the 36 homes sold. WaterColor’s Turtle Ridge had four homes sell from $499,000 to $425,000 at 1,700sf to 2,000sf. The highest priced home for the month of June was 357 Western Lake Drive in WaterColor. It was a beautiful 6 Bedroom / 6 Bath 5,207sf new home on Western Lake Drive in WaterColors highly sought after Park District. The home sold for $2,750,000 and was $528/sf. The average price per squarefoot in WaterColor for the month of June is $353/sf and median sales price was $895,000 which was skewed by the 4 Turtle Ridge Homes.

The most expensive new listing is 179 Pelican Circle in Seacrest’s Camp Creek Lake subdivision. “Surf Serenade” is a premier gulf front property with 7,295sf and is priced at $5,995,000 which is $821/sf.