Coastal Resort Mrket - How did we get here?

[Miss Kitty]

I have skimmed through all of these latest posts, but wanted to say thank you to the posters, even before I go back and read them in depth. This is the kind of conversation that teaches me a lot about the reality and mentality of sowal real estate. Knowledge is power...thanks!

Before a neighborhood short sale knocks on your back door, the reality of it all is "easier" to ignore. knock knock.... Knew it was coming, but, damm....sure am glad I bought for the "right" reasons! ;-)

 

[30ashopper]

I recently heard of someone purchasing a lot in WaterColor for $65,000 that was in foreclosure.

Just wanted to throw that out there.

It always makes me wonder exactly how doom and gloom some folks are willing to go. The simple fact is that there is no more South Walton coming. We don't get more land every year, but we do get more visitors, full time owners, and investors. Short of a rendering plant in Pt. Washington I don't see anything in the pipeline that is going to make this area less desirable.

It's not so much about the desirability as it is about finding buyers with the credit and income needed to purchase high end real-estate. Monthly gross sales for all of Walton County are currently hovering around 50 million, that average hasn't changed in a year and a half. How long will it be before people again have the money to invest in the real-estate they desire? Those folks - the "evil" rich people - are on the cusp of a major set of tax increases. Government will soon realize their GDP forcasts are grossly under estimated and the corresponding deficits currently being generated to mask over how bad things are are unsustainable. Historically, upper-middle and upper income earners are the ones the government turns to to soften things up. I guess what I'm saying is, this aint over till it's over (and it aint over by a long shot) What affects the future will have on our local RE market are hard to predict, but it doesn't look pretty.

 

[Bobby J]

I recently heard of someone purchasing a lot in WaterColor for $65,000 that was in foreclosure.

Just wanted to throw that out there.

It always makes me wonder exactly how doom and gloom some folks are willing to go. The simple fact is that there is no more South Walton coming. We don't get more land every year, but we do get more visitors, full time owners, and investors. Short of a rendering plant in Pt. Washington I don't see anything in the pipeline that is going to make this area less desirable.

Watercolor has always baffled me. This is is the area that tells me I have lived here too long. I believe that $65,000 lot is near the publix. It was actually $69,000. They have had many low sales this year near the publix. One as low as $47,900.00. But.... They have also had 34 vacant land transactions this year. The range has been pretty extreme depending on how close you get to the water. if you want to be within walking distance to the beach in Watercolor you are going to dig very deep. Do not let the publix sales confuse you. On another note, may not be a bad spot to build a spec house.

Like I said earlier. Totally different market a mile away. Even in the same neighborhood.

 

[Bobby J]

It's not so much about the desirability as it is about finding buyers with the credit and income needed to purchase high end real-estate. .

I think there are more then you realize. My earlier point is once the price hits the right spot these very wealthy people will gobble the property up. Every property. It may still be ugly but every property has a price. They circle like vultures.

 

[gmarc]

Bobby what did those homes in grayton cove sell for? i see one listed for $299k tonight at 8 gulf mark lane. i drove by those a few weeks ago and the yards were grown up 10 feet. plus thats a good 1 mile plus to the beach. scounting the area i'm still seeinfg many homes still for sale that have been on the mkt 1 -2 years.

 

[Smiling JOe]

I think most sold of those sold well under $300,000, and most sold within two weeks of each other. Six were to be auctioned, but also had a "buy now" price. I had several customers look at the homes, and cannot recall the prices of the ones not in the MLS. The biggest objection from my customers was the lack of parking. The house they liked the most were the smaller homes tucked into the corners, which on a good day had parking for two minis, unless the neighbor's suburban was parked in their driveway. Still, good prices to be within five minute bike ride to the beach at Grayton.

 

[Bobby J]

Bobby what did those homes in grayton cove sell for? i see one listed for $299k tonight at 8 gulf mark lane. i drove by those a few weeks ago and the yards were grown up 10 feet. plus thats a good 1 mile plus to the beach. scounting the area i'm still seeinfg many homes still for sale that have been on the mkt 1 -2 years.

The range was $250,000-$289,000. The one on Gulf Mark has been under contract twice. It just came back on the market. It is 5 bedroom but has a weird living area. Very small living. Still a good buy. All the landscape is currently be redone and the pool is back in action. The folks that bought in there have already created a community with the same purpose. They all wanted a beach house and not have to worry about rental numbers. One buyer even flipped one to a friend. We have sold 3 of these and are waiting for the next and last of the foreclosures. The homes were very well built. I think parking was OK especially if you look at the majority of the beach properties down here.
I think Grayton Cove was the best deal going in a long time. One buyer in the hood has taken the ball and is fixing all the problems. Basically, creating the value. Take another look next time you go by. The only problem area at this point are the 4 remaining foreclosures. I think the new buyers are cleaning up those yards as well. The homes all had 9'-10' ceilings, granite, stainless, slate, hickory floors, solid core doors, hot water demand systems, community pool, etc. I used that hood as a barometer if my buyer was real or not. If they did not get that one after showing everything else, I found they were tire kicking. The proof is in the sales. Not only the 5 of the 6 auctions are gone but there were 3 other homes for sale that are sold. 8 homes out of 9 active, now sold. I think with the new added value (pool and yard all maintained) the next and last 4 will be gone in days.

The homes you are seeing that have been on the market for 1-2 years are priced too high.

 

[Busta Hustle]

JOE reports 80% drop in revenues from re sales. 2008-2009 through 2nd quarter

 

[gmarc]

joes stock is up 120% since march back to $31. wall street could care less wether joe makes a cent right now its such a mania run

 

[Matt J]

joes stock is up 120% since march back to $31. wall street could care less wether joe makes a cent right now its such a mania run

Maybe it was "the time to buy".