By Jon Miller / March 27, 2015
30A sales continues to steam! I sometimes wonder if I’ve gone back in time 10 years to 2004 and 2005. I am seeing many similarities between then and now—except for one major change—which will shape this market in an entirely different way.
Some of the similarities are: new construction is furious on 30A; everywhere you look, you see new homes being built. Also, prices are jumping up at a quicker-than-normal speed. We were on a slow, steady uptrend for the past couple of years, but I am seeing pricing spurts now. This market is shifting speeds into high gear.
Here are just a couple of statistics to demonstrate:
- 793 properties are currently listed for sale along 30A. This average number of listings is down approximately 35 percent from the past few years.
- 255 properties are currently under contract and waiting to close.
- 1,173 properties sold and closed in the last 12 months.
- The average sales price is now $919,000 along 30A.
The market jumped the same way back in 2004 with buyers entering in groves. However, 10 years ago people were walking into a bank and coming out with “borrowed” money—in many cases with little or nothing down on the property, with little or no cash of their own in the property. Today, walk into a bank and try to do the same thing; they will look at you strangely.
Second, many of the people purchasing 10 years ago looked at the property as a short-term investment (Buy and sell quickly to make money). Too many buyers back then were buying for the wrong reason.
Today I am seeing a lot of cash buyers, or people putting a large portion of cash down. And when the buyer goes to the bank, he is much more qualified than many of the buyers in the market 10 years ago. This market may be fast-moving but it has the right people in to make it stable.
The market is getting more costly to enter, but 90% of the market is not over-priced. I will explain the other 10% in a moment.
So, let’s go back to 2004. Properties were entering the market at prices I felt were unreasonably high. I actually called a couple of agents and questioned them on their logic. Basically, they knew they were priced high! They felt the market was moving so quickly that it wouldn’t be long before it would rise to meet their asking price.
Well, I grew up in the 60’s, so I never thought of myself as conservative, but I might be proven wrong because I’m seeing 10% of the market as overpriced again!
It’s the same exact logic. So who’s making the calls here? Is it the seller? Is it the agent? Perhaps a little bit of both? The good thing is, I do feel today’s market is well-supported by serious owners and for the most part, while it’s more expensive to enter than a couple of years ago, it is mostly priced appropriately. But how long will it last?
Moving to a more personal note … I mentioned in my last newsletter that we moved to our new office located at 3567 E. Co. Hwy 30A in the heart of Seagrove. Please feel welcome to stop in, say hello, and discuss the 30A market with us. We can preview properties together over a large screen and give you a feel for the market without you having to drive up and down 30A.
Also, we just launched our new web site: www.gotothebeach.com (in fact you are looking at it right now). It has great search features and is very user-friendly. We offer a map search and also allow you the opportunity to sign up for a new listing’s alert. You can set it up to receive properties that meet your criteria as they enter the market—be among the first to know about all the special 30A real estate opportunities .
If you have any questions or would like me to send you a list of my current “favorite properties” for sale, please send me an e-mail at firstname.lastname@example.org. Also, if you are an owner interested in selling a property in the area, please contact us for a free price analysis.
We sometimes get busy. Tourist season seems longer every year. But please remember we have not forgotten about you. Always feel welcome to give us a call anytime. I make myself available to talk real estate, day and night. I look forward to the opportunity to share my knowledge of 30A with you.
Broker, CIPS, RSPS
850.231.3344 Ext. 1 Office
“Day or night – I’m on your schedule.”