Local real estate market on a ‘comeback' says ECAR

“We’ve been creeping along the bottom of the market for awhile now, and we’re seeing a little upward movement in price.”— ECAR President Mary Anne Windes

The Florida existing housing market made some sizeable leaps during the final month of 2009. According to statistics released by Florida Realtors, December sales of existing single-family homes jumped 33 percent and condos, a whopping 91 percent.

“The market is on a comeback,” said Emerald Coast Association of Realtors (ECAR) President Mary Ann Windes. “That’s why ECAR’s theme for 2010 is ‘The future’s so bright, we gotta wear shades!’”

Locally, sales of existing single-family homes along the Emerald Coast were up 22 percent. Panama City also saw their numbers rise, albeit modestly at 2 percent, and Pensacola reported a small decline, dipping 2 points.

While most of the markets in Florida saw a decrease in the median sales price including Panama City and Pensacola at 9 and 8 percent, the Emerald Coast was one of only a handful to report an increase, up by 10 percent.

“We’ve been creeping along the bottom of the market for awhile now and we’re seeing a little upward movement in price. Even though we won’t know for sure until we’re well past it, we believe prices hit the bottom in 2009,” said Windes, broker-owner of Real Estate Professionals of Destin Inc.

“It’s too early to say that they’re rising,” she continued, “but I can tell you from personal experience that prices are getting competitive again.”

Condos remained a hot commodity in the chilly month of December, with sales of existing units soaring 91 percent, as compared to the previous year. The Emerald Coast bettered the state’s average, rising 135 points.  Panama City and Pensacola also saw gains, each rising 42 and 70 percent respectively.

Although the median sales price dipped in nearly all Florida markets, gains were reported in three areas, including Pensacola, up 28 percent. While the Emerald Coast and Panama City Beach reported decreases in median sales prices of 8 and 10 percent, both areas skirted under the state’s average drop of 18 percent.

“With the number of buyers increasing in the market, sellers don’t have to reduce their prices to compete, and this seems to be stabilizing prices,” Windes said.

She also noted that short sales and foreclosures appear to be attracting buyers to the market, and this trend probably won’t disappear anytime soon.

“Short sales and foreclosures are a reality of the market and will be for quite some time,” Windes affirmed. “The market continues to adjust to current conditions, as it always does.”

Windes observed that federal tax incentives continue to draw buyers to the market now that the deadline for the first time homebuyers’ $8,000 tax credit, originally implemented in 2009, has been extended to include buyers who sign sales contracts between Nov. 7, 2009 and April 30, 2010, providing they haven’t owned a primary residence in the past three years.

Additionally, a relatively new tax credit allows qualifying repeat buyers to reap up to a $6,500 tax credit, if the home being sold or vacated was used as a primary residence for at least five consecutive years of the past eight.

With all the programs, incentives and other factors affecting the market, it’s particularly important to Rely on a Realtor, said Windes. “Realtors are bound by a higher code of ethics and are required to disclose materially known defects,” she said, listing just a few of the advantages Realtors bring to a transaction. “And Realtors know who’s who among lenders, property and pest inspectors, surveyors, appraisers and closing agents.”

This article was contributed to The Log by the EmeraldCoastRealtors.com.