Post-summer recap
Summer was definitely a busy time in the 30A area. The number of homes for sale is relatively low, prices are up, and we still have a strong Seller’s Market. Below are some summary stats of Residential homes in key areas of Walton County for August 2021.
There is usually an active fall market in this area. Homes are easier to sell when not occupied by vacationers, and many investors want to complete a transaction or exchange prior to year-end.
End In Sight?
Will the current market conditions continue? Real Estate is local, so what’s true in one area isn’t necessarily true in another. I’ve heard some express the idea that our market will experience a crash like we experienced in the mid-2000s. If the past is a predictor of the future, it’s important to understand what caused the previous crash.
This article from Wharton identifies a few key causes:
- a “rush to lend money to homebuyers without regard for their ability to repay”
- NINJA mortgages (no income, no job, no assets)
- Borrowers who were not adequately qualified in terms of income levels and down payments on the homes they bought
I share the opinion of the authors that we are unlikely to see a dramatic change to this market. We’re not seeing a financing frenzy as we did 15 years ago, and credit-worthiness remains a key factor in getting a loan. Additionally, we see a tremendous number of “cash deals” in our marketplace (over 35%). When a buyer has a significant amount of their own money invested in a home, they are unlikely to walk away from that equity, even with a price reversal.
Finally, our market has a significant income stream generated from vacation homes. This revenue stream helps to offset the costs of financing. With no sign of our tourism business declining, home prices will likely continue to appreciate.
Should I Repair?
If you’re thinking of selling, you’re likely considering what should be fixed/repaired/updated prior to going on the market. Here’s an article with some good food for thought, from Homes.com:
Interested in more information for your specific area, or thinking of buying/selling? Contact me – I’d be happy to help.