When coming to the area over the last few years, I have been looking at real estate but figured it was just way too expensive to buy in the area. Last time we came down it seemed some prices were way down from a year or so ago but others were sky high. Is anything selling? There was also a lot of inventory on the market. Am I correct? Are prices falling? Is now a good time to buy or would it be a good idea to wait. Any good sources of information to research price trends?
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What's up with the market in the grayton beach area
- Thread starter billyjoe
- Start date
Welcome. You might want to start by perusing the other threads here in the Real Estate section. Smiling JOe posts some really good info each month on previous month sales.
Then, sharpen your #2 pencil and take a seat … Professor Shelly will be in any moment.
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josebby
Beach Lover
Paula
Beach Fanatic
billyjoe:I saw a very good seemingly well-balanced article about second home ownership in the recent issue of Money Magazine this past weekend. I recommend that you look at that (I couldn't find it online but if I could I would put up the link). And then figure out how to get some good information about the SoWal market and talk to your accountant. Also, factor in taxes, insurance, etc., because they are expensive and the more expensive the house, the higher they will be.
We love our places (we bought two smaller cottages rather than one bigger one) and being able to come to our second home in SoWal when we want to (which is never often enough). When I'm working away or otherwise stressed in Michigan, I can think of the beach across the street and quickly calm down and get perspective.
We rent them out when we're not here, though you can't count on rentals as a significant source of income (even though the rentals certainly help, they aren't dependable given possible hurricanes, economic trends, overbuilding in the area for now, etc.). We bought (when the prices were lower) for the long-term, as places to enjoy and as reasonable investments over the long-term. So, short term economic cycles don't worry us. We're not in Grayton Beach, though, so others who are have a better sense of that beach (we're in the Seacrest Beach area).
I'm no expert, but you will probably be hearing from them soon. In my opinion the Grayton Beach market is too small for much meaningful analysis, as there have been few transactions this year. The south Walton market, particularly along Hwy30-A, is what to look at. This includes Grayton and the other "villages" along the beach.
Try this link for one analysis.
http://www.davisprop.com/newsinfo.asp?id=1001
Here's my opinion, for what it's worth: Lots of stuff for sale. Probably a good time to buy if you are an end-user, not a flipper/investor, and have a three-plus year minimum time frame before selling.
Try this link for one analysis.
http://www.davisprop.com/newsinfo.asp?id=1001
Here's my opinion, for what it's worth: Lots of stuff for sale. Probably a good time to buy if you are an end-user, not a flipper/investor, and have a three-plus year minimum time frame before selling.
That is some scary data from your link... I have a question for you though...
You mention that if you are an end-user you would go ahead and buy, but if you are a flipper/investor... you should wait...
How do you come to this logic that a end user should sign up to lose money, but yet a flipper/investor should stay away... Shouldn't they both stay away from buying in that time frame if the current rental rates are 50% if not less of the cost of ownership at todays rates???
I just don't get the logic of telling an end user he should sign up today when all market indications point to a major correction of prices over the next few years...
I don't think anyone will lose money in a three or more year time frame, if they purchase today at a fair price. (Crikey, is that a topic...). This is a desireable area and will remain so. The white sand and clear water that we have here is found from about Orange Beach (on a good day) to Tyndal AFB. So, it's a limited supply. Additionally, over 40% of land in SoWal is state-owned or otherwise public land. Again, ultimately limiting supply. Yes, we have tons of inventory to choose from and lots of bargaining room. Is this the very bottom? Who knows? Market timing, both in real estate and financial markets, is difficult at best.
So I don't think it's a bad time to "buy and hold", assuming minimal leverage. Where else does one put cash these days?
So I don't think it's a bad time to "buy and hold", assuming minimal leverage. Where else does one put cash these days?
Franny
Beach Fanatic
I believe what he/she is saying is an end user in all probability will keep the property as a long term investment vs a flipper wishing to resell quickly, which we all know isn't going to happen in this market in the "immediate" future. There are buyers desiring a second home because they LOVE SoWalton and are in a situation to buy now rather than the next few years. I also believe our market will readjust much sooner than in a few years.
From the Davis Properties link above... Market Data...
SFR
48 Months Supply
Res. Land
63.5 Months Supply
Condos
52.5 Months Supply
TH
25 Months Supply
All residential property on market compared to current month sales rate gives a whooping (using June data).... 51 months supply...
How can this not end ugly???
SFR
48 Months Supply
Res. Land
63.5 Months Supply
Condos
52.5 Months Supply
TH
25 Months Supply
All residential property on market compared to current month sales rate gives a whooping (using June data).... 51 months supply...
How can this not end ugly???
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SHELLY
SoWal Insider
In "cash."