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February 2017: Sales Up Ahead of Spring Selling Season

If you’ve heard that now is a good time to sell your home, you’ve heard correctly as we head into the spring selling season here along the Emerald Coast. Single family, townhouse, and condos sales were positive across the board in February when compared to the year before. Prices are increasing while inventory continues to drop. Buyers are scooping up the best properties as fast as they can.

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 4.4%
• Pending sales increased 11.4%
• Median prices increased 7.7%
• Inventory decreased 7.4%
• Months supply decreased 15.5% to 4.9 months of inventory

 

Okaloosa County

• Closed sales increased 3.2%
• Pending sales increased 5.5%
• Median prices increased 6.2%
• Inventory decreased 16.4%
• Months supply decreased 21.7% to 3.6 months of inventory

 

Walton County

• Closed sales increased 9.9%
• Pending sales increased 10.1%
• Median prices increased 2.4%
• Inventory increased 2.4%
• Months supply decreased 5.5% to 6.9 months of inventory

 

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales increased 42.9%
• Pending sales increased 32.8%
• Median prices increased 2.5%
• Inventory decreased 14.6%
• Months supply decreased 14.3% to 7.8 months of inventory

 

Okaloosa County

• Closed sales increased 38.5%
• Pending sales increased 6.1%
• Median prices increased 13.6%
• Inventory decreased 21.4%
• Months supply decreased 26.3% to 7.3 months of inventory

 

Walton County

• Closed sales increased 38.9%
• Pending sales increased 10.8%
• Median prices increased 8.5%
• Inventory decreased 8.5%
• Months decreased 3.5% to 8.2 months of inventory

 

 

A few things to remember…

 

Single family homes along the Emerald Coast are firmly in a seller’s market right now – as long as a home is priced right and staged well. Okaloosa County is seeing especially low inventory levels currently. Buyers have very little to choose from, even as new listings come on the market. A seller who prices competitively and stands out from listings that have been on the market for months should do well. Townhouses and condos have a higher inventory but it continues to shrink to healthier levels which will continue to help sales improve.

 

Pending sales were the first signs of positive movement in the current market in January as an indication of February sales. They remained higher than previous years in February. This doesn’t automatically mean that March sales will increase over last year, but it is a metric to watch.

 

An increase in median prices are tied to multiple issues: an improved economy, more lending, and the amount of inventory available. As inventory shrinks, competition for good homes increases among buyers. This can turn into multiple bids and more solid bids as buyers hope to have their offer accepted.

 

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2012 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

Understanding Reverse Mortgages

A reverse mortgage isn’t for every homeowner, and you should never enter into one without doing some research on the process or the bank offering it. But there are also a lot of misconceptions out there about what you can and can’t do with a reverse mortgage.

 

Here are just a few things you might not realize about how reverse mortgages work.

 

You Own Your Home

 

The common thought is that the lender owns your home once the mortgage closes. In reality, you retain the title and ownership of your home during the life of the loan. You can also sell at any time. Like every other mortgage, the bank would be paid back from the proceeds of the sale. As long as you meet the loan obligations described in the terms of your mortgage, the loan will not come due. Make sure you know and understand those obligations before you close.

 

You Can Have a Mortgage When You Apply

 

Some people actually use the reverse mortgage to pay off their existing mortgage. This helps them get rid of the mortgage payment right as they might need the financial help the most. It can be a good financial strategy if you’re entering retirement or anticipate rising costs where your money can be better spent.

 

Affluent Owners Use Reverse Mortgages Too

 

Many people think of reverse mortgages as something poor homeowners need. While it can eliminate a costly payment for people, some wealthier owners are using reverse mortgages, too. In their case, it’s often part of an overall financial strategy to help grow their current wealth.

 

Your Children Can Keep Your Home

 

Many people believe that their home will be immediately taken once they die, leaving their children with nothing. That’s not automatically true. Yes, the bank can keep the home but your kids do have an option. If the loan balance is higher than the worth of the home when you die, your children will only have to pay 95 percent of the appraised value in order to keep it. It’s important that you talk to your children once you have the reverse mortgage so they know what they need to do after you die.

 

Reverse mortgages aren’t something to be done lightly, and it’s important to talk to a lender about the process and the requirements. If it’s what you need as you age to eliminate a mortgage payment, it could be the right step for you. Talk to a variety of lenders and shop around before committing to a reverse mortgage to make sure you’re armed with facts and are getting the best deal possible.

 

Source: Reverse Mortgages: Myths vs. Reality, Florida Realtors

March 2017 Events Across the Emerald Coast

Looking for something to do in March? There’s something for everyone – especially now that the weather is warming up and feeling more like spring.

 

Multi-Chamber Business Expo and Taste of Okaloosa County

Thursday, March 2; 4:00 p.m. to 7:00 p.m.

Emerald Coast Convention Center

 

The Destin and Fort Walton Beach Chambers have partnered once again to bring an amazing networking and marketing opportunity for businesses across Okaloosa County. Make contacts for your own business and learn what the area has to offer. Admission is free! Learn more.

 

Emerald Coast Autism Center’s Hole in One Golf Tournament

Friday, March 10

Blackstone Golf Course, Defuniak Springs

 

Play a round of golf and help kids with autism at the same time. The tournament begins at noon. Registration is $125. There will be raffle prizes, food, and entertainment. Learn more.

 

4th Annual Tequila and Tacos Fest

Saturday, March 11; 1:00 p.m. to 5:00 p.m.

HarborWalk Village, Destin

 

Try tequila of every flavor and from across the world while eating your weight in tacos. Best of all, spend the day in HarborWalk Village enjoying the beautiful weather, the sunshine, and the water. Tickets start at $20 for non-drinkers. Proceeds benefit the Salvation Army. Learn more.

 

11th Annual Children in Crisis Charity Golf Tournament

Friday, March 17

Fort Walton Beach Golf Club

 

Come for lunch at 11:00 a.m. and to play at noon. Registration is $100 per player or $400 per team. You’ll receive lunch, a shirt, drinks, and the chance to win awards while helping local kids. Learn more.

 

17th Annual Run with the Dogs

Saturday, March 18; 9:00 a.m.

Destin, Florida

 

Run with or without your dogs in this annual 5K race. Even if you don’t run, you’re welcome. If you bring your dog, remember they must wear their current rabies tag and be on a short leash. Also, you’ll be responsible for picking up behind them so bring those baggies. Learn more.

January 2017: Sales Up Across Emerald Coast

Closed sales increased by double digits for single family homes and condos/townhomes in January when compared to the same time last year. Median prices continued to rise as inventory shrank further. The gains in January continue the trend seen with 2016 sales.

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 18.2%
• Pending sales increased 9.1%
• Median prices increased 12.6%
• Inventory decreased 6.4%
• Months supply decreased 14% to 4.9 months of inventory

 

Okaloosa County

• Closed sales increased 19.6%
• Pending sales increased 12.2%
• Median prices increased 12.6%
• Inventory decreased 16.6%
• Months supply decreased 23.4% to 3.6 months of inventory

 

Walton County

• Closed sales increased 14.5%
• Pending sales increased 11.5%
• Median prices increased 15.1%
• Inventory increased 6%
• Months supply decreased 1.4% to 6.9 months of inventory

 

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales increased 47.9%
• Pending sales increased 51.9%
• Median prices increased 2.5%
• Inventory decreased 14.3%
• Months supply decreased 12.2% to 7.9 months of inventory

 

Okaloosa County

• Closed sales increased 7.9%
• Pending sales increased 8.1%
• Median prices increased 7.2%
• Inventory decreased 21.9%
• Months supply decreased 24.5% to 7.4 months of inventory

 

Walton County

• Closed sales increased 52.5%
• Pending sales increased 82.1%
• Median prices decreased 13.5%
• Inventory decreased 8.3%
• Months supply saw no change at 8 months of inventory

 

 

A few things to remember…

 

An increase in median prices are tied to multiple issues: an improved economy, more lending, and the amount of inventory available. As inventory shrinks, competition for good homes increases among buyers. This can turn into multiple bids and more solid bids as buyers hope to have their offer accepted.

 

Single family homes along the Emerald Coast are firmly in a seller’s market right now – as long as a home is priced right and staged well. Okaloosa County is seeing especially low inventory levels currently. Buyers have very little to choose from, even as new listings come on the market. A seller who prices competitively and stands out from listings that have been on the market for months should do well. Townhouses and condos have a higher inventory but it continues to shrink to healthier levels.

 

Pending sales are an indication of the immediate future of the real estate market – typically the next month’s sales. These numbers are not a guarantee of future sales as not all pending sales make it to the closing table, and those that do may take more than 30 days to complete. Pending sales in January were stronger than they’ve been in months. We’ll have to wait and see what this means for February.

 

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2012 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

2016: The Year in Real Estate Along the Emerald Coast

Looking at the whole year of 2016 (as compared to 2015) in terms of real estate across the Emerald Coast shows a clear picture of success in some areas and where the problems lie in others. Single family homes, as they did for most of 2016, outperformed previous years in terms of sales and prices. Condos and townhomes struggled through the year, for multiple reasons.

 

Note: To get a better picture of the real estate market in 2016, additional statistics have been included from the available reports.

               Single Family Home Sales

 

Emerald Coast

• Closed sales increased 6.8%
  • Total: 6738, highest in current reporting history
• Pending sales increased 1.4%
• Median prices increased 6.9%
  • Total: $245,900, highest in current reporting history
• New listings increased 2.4%
  • Total: 9039, highest in current reporting history
• Median days on market decreased 15.1%
  • Total: 62 days, lowest in current reporting history
• Inventory decreased 7.1%
• Months supply decreased 13%
  • Total: 4.9 months of inventory, lowest in current reporting history

 

Okaloosa County

• Closed sales increased 5.9%
  • Total: 3817, highest in current reporting history
• Pending sales increased 1.4%
• Median prices increased 8%
  • Total: $205,000, highest in current reporting history
• New listings increased 1%
  • Total: 4,482, highest in current reporting history
• Median time to contract decreased 11.9%
  • Total: 52 days, lowest in current reporting history
• Inventory decreased 16.6%
• Months supply decreased 21.7%
  • Total: 3.6 months of inventory, lowest in current reporting history

 

Walton County

• Closed sales increased 5.6%
  • Total: 2,385, highest in current reporting history
• Pending sales decreased 1%
• Median prices increased 4.6%
  • Total: $368,759, highest in current reporting history
• New listings increased 6.3%
  • Total: 3,140, highest in current reporting history
• Median time to contract decreased 11.8%
  • Total: 82 days, lowest in current reporting history
• Inventory increased 6.3%
• Months supply saw no change with 6.9 months of inventory

 

 

               Townhouse and Condo Sales

 

Emerald Coast

• Closed sales decreased 6.1%
• Pending sales decreased 3.1%
• Median prices increased 0.9%
  • Total: $290,000, highest in current reporting history
• New listings decreased 3.5%
• Median days on market decreased 7.3%
• Inventory decreased 10.4%
  • Total: 1,303, lowest in current reporting history
• Months supply decreased 4.7%
  • Total: 8.2 months of inventory, lowest in current reporting history

 

Okaloosa County

• Closed sales increased 2.9%
• Pending sales increased 1%
• Median prices increased 12.8%
  • Total: $265,050, highest in current reporting history
• New listings decreased 6.7%
  • Total: 1051, lowest in current reporting history
• Median time to contract decreased 14.7%
• Inventory decreased 27.8%
  • Total: 496, lowest in current reporting history
• Months supply decreased 27.8%
  • Total: 7.0 months of inventory, lowest in current reporting history

 

Walton County

• Closed sales decreased 12.2%
• Pending sales decreased 8.6%
• Median prices increased 2.2%
  • Total: $330,000, highest in current reporting history
• New listings increased 0.5%
• Median time to contract decreased 9.1%
• Inventory increased 2.1%
• Months supply increased 16% to 8.7 months of inventory

 

 

A few things to remember…

 

The current reports date back to 2011, a few years after the start of the Great Recession and the catastrophic drop in the housing market. Since then, in many ways, numbers have continued to improve year after year.

 

Even in areas that didn’t see an increase in closed sales, median prices are up to record highs. Some increases were modest while others were more dramatic, but it all points to what we’ve talked about all year long – values and prices improved in 2016.

 

If inventory doesn’t improve in the single family market, especially in Okaloosa County, sales will suffer in 2017, although prices may continue to increase as competition increases. Townhouse and condo inventories are still on the high side but a lack of new listings coming on the market has contributed to a lack of growth in sales. It’s not the only reason but it’s a contributing factor.

 

The boom year for condos, according to current reporting, was 2013. It was a year of record gains and sales. Numbers have dropped off since then.

 

The median days on market/median time to contract shows a great improvement in nearly all categories. Homes are selling quicker than in years past.

 

It’s best to look at the data as part of an on-going trend. One month does not dictate the entire market. If you view the data collected since 2011 for the Emerald Coast, Okaloosa County, and Walton County as a whole, you can get a good feel for what’s happening in the local housing market. Overall, the market has improved greatly.

 

All sales data is from the Emerald Coast Association of Realtors® (ECAR) Multiple Listing Service (MLS) and is compiled by Florida Realtors®, the state association for Florida. The Emerald Coast statistics cover both Okaloosa and Walton counties as well as surrounding areas based on the listings entered into the MLS by ECAR MLS participants.

The Talk: Paving the Way for a Solid Financial Future

With the need seemingly greater than it was for previous generations, it’s not uncommon for parents to financially support their adult children—at least at some level. Providing that assistance, however, shouldn’t happen without first setting boundaries, says Stephen Williams, co-head of BMO Private Bank’s U.S. Financial Planning Strategy.

“Parents need to keep in mind that today’s young adults face unique financial challenges and may require different levels of support than they themselves received,” Williams explains. “If parents and children have frank conversations with each other about the amount of support they expect to provide or receive, they can avoid misunderstandings that could put their financial situations in jeopardy.”

Williams advises hosting a conversation with your own children, and considering these tips.

 1. Start now. Gaining an understanding of the basics of personal finance at a young age can        help set up a child for future financial success and independence.

 2. Consider a Roth IRA.A Roth IRA can make savings more tax-efficient and extend parents’ ability to use their resources to meet financial goals. Although the amount that can be contributed annually to a Roth IRA is limited by IRS guidelines, income earned in the account is generally not subject to any federal or state taxation.

3. Use Gift Tax rule exceptions.If appropriate, take advantage of exceptions in Gift Tax rules that can help to increase the benefit available to children and dependent parents. For example, gifts made for tuition purposes or to pay medical expenses are not subject to the Gift Tax.

4. Leave a legacy of financial comfort. Parents can ensure their estate plans, including wills, provide for their children adequately. Proper insurance planning to supplement income of a surviving spouse or to support children who may be struggling financially is also critical.

Source: BMO Wealth Institute