I briefed a local bank on the Market Trends on the Emerald Coast.
Below is a quick summary of our observations:
•Growth with Signs of Stabilization in Okaloosa and upward pricing pressure in pockets of South Walton
•Tightening of Single Family Home Supply
•Tightening of Vacant Lot Supply For Independents
•Builders’ Land Cost Increasing - Subs
•Aggressive Price Increases over past Three (3) Years
•Buyer is Not as Price Sensitive though some push-back on price increases in past two years
•Seeing Some indications of Speculation
•“Affordability” – Low Interest Rates and Aggressive Loan Programs
•Still See Foreclosures –
–Inventory Quickly Soaked Up
–Provides Development Opportunities to Meet Demand – Pro-cyclical?
•Expect Prices To Be All Over the Board.