Perdido Key Market Report and Sales Analysis- The Perdido Key 2011 market was by most measures a very good year. It was a mixed bag, up and down, with an unusually active December but slow Sep/Oct and a strong August making up for a lack luster June/July that followed a good first half. Still it was a great year for unit sales and an improvement over the disastrous 2010 average price per sale that was influenced by lingering short sales and foreclosures. We closed 195 on Perdido Key in 2011, far more than last year of course because of the BP oil spill and better than the previous 5 years. We saw a return of some of the higher end buyers with an average sale bouncing back up in the $400K range. Cash was king with nearly 70% of buyers writing a big check instead of financing. Prices/sq-ft remained stable (and on the rise in some isolated complexes) and inventory ended historically low with only 195 units for sale at year's end. We saw a wider demographic in the buyers in the market. This additional buyer group, loosely defined as a family in their late 30's early 40's, were willing to look at higher end properties and buy in the mid-level or above. The low inventory made the options fewer and resulted in an increase in the average sales price but a fairly consistent price per square foot across comparable properties. Sellers found that price (stable but still bargain levels with a few exceptions as noted) was the main motivator with the lower priced units of comparable properties selling first. Our main challenge in 2011 was financing where strict requirements and higher down-payments made it difficult for some. The buyers found bargains in the mid-level condos (price points between $350K-$600K) like Beach Colony, Palacio, Spanish Key and Indigo. The brightest spot was on the rental side of our resort/vacation area. Tourism was the strongest ever with a near sell-out crowd for the peak months of the year and the off-season rentals were also up. In summary: In 2011 the low end price point was the leading sales segment with 65% of total sales sold below $350K. We saw a wider spread in sales prices in 2011 and higher end buyers are in the market with 25% in the $350K to $600K. The difference is in the scarcity of distress sales. Two thirds of sales this year were for cash. The "elite" condos in the segment of $600K+ properties continue to be bargains with the price points getting in the $600-$900K range resulting. There was a paradigm shift in 2011 towards the mid-level prices points ($350K-$600K) as these married couples, strong wage earners with an SUV and 2-3 kids in the back seat, are buying the bargains with low price per square foot in mostly 3 bedroom units. Financing will be the factor for these buyers into 2012 which may influence some. It's available but typically with 30% down. The prediction for this year was for sales numbers of 185 units and a rise in price points by 3-7% at year's end. We ended the year with 195 and a rise in price per sale of 14%. The price per square foot increased by 6.8%. All of this is to say: There is still a limited opportunity for Buyers in this Market We have little inventory still available for the bargain hunter. Sellers are not bringing much to the market with prices just beginning to come off the bottom. With less short sales and virtually no foreclosures there is little pressure on sellers to lower prices below current levels. Buyers should stay closely in touch and react to new listings or price drops. There are some off- beach deals, and a few good buys in Gulf front, mostly in the $400K-$500K three bedroom condos and $200-$300K two bedroom condos. Values are more likely in larger, so-called elite condos. If you are thinking of selling we will get a clearer picture after February when we notice trends.
ZIP Code: 32507 Location Characteristics: Upscale Resort/Vacation home market just west of Pensacola, FL and east of Orange Beach, Al stretching along the sugar white sand beaches of the Gulf of Mexico.
About Peter C. King:
I am a former Navy pilot, U.S. Naval Academy graduate, who went on to become a Delta Air Lines captain. I have had the priviledge to fly all over the world and serve with and meet some of the most interesting people anywhere. I have come home to Perdido Key in the Pensacola area to enjoy the most glorious beaches, superb boating and fishing, the Blue Angels Navy aerobatic performance team overhead, and a down home enviroment you cannot find in any other coastal community. Perdido Key is a resort locale like no other. Let me tell you about my little piece of paradise.
These reports reflect the views and opinions of their authors and are not necessarily the views and opinions of Realty Times.
