At Live 30A Real Estate, we take care to create content that will allow those in our care and those in our sphere of influence to make great decisions whether buying or selling. This market report is specifically for "30A Real Estate" from Santa Rosa Beach to Inlet Beach and does not include the communities north of highway 98, such as Watersound Origins.
You'll find the same graphics that we share on our social media @Live30A (Instagram and Facebook), but richer explanations and thoughts accompanying.
30A Real Estate Market Report | First Quarter 2023
Discover the Newest Listings on 30A Today Here
Market Statistic Notes:
1. The 30A Real Estate market in 2023 is trending upwards in sales per month, a trend growing over the past 3 months. Previously trending downwards since summertime last year due to rising interest rates and lack of clarity on the future for those rates, ie. - cost of money and how that may affect the real estate market values.
2. Sales per month and Year to date is about 50% compared with 2022, but right in line with 2019 stats. For example, in March, there were 116 sales on 30A (residential/land), this is about half of what we saw last march, but right in line with the "typical" 118 sales per month we would be use to seeing "pre-pandemic".
3. Absorption rate, sitting at 5months is much higher than 2022, but now it's moving towards a well balanced position. Prior to the pandemic and ensuing market actions, the absorption rate was hovering around 8.5 months (of inventory) - and since then dwindled down to 1 month, an unsustainable level that causes market shortages, multiple offers, supply/demand issues, etc. A market absorption rate between 4-6 months is a healthy place for both buyers and sellers to achieve fair means of buying and selling with "normal" negotiation, sale times, and competition.
4. Days on market. It is "normal" for a property to sit on the market for proper exposure between 1-90 days depending on the property, marketing strategy, exposure, and pricing. Over the past 24 months, we were accustomed to immediate contracts, multiple offers, and no negotiations - again, a trend that is not sustainable, nor ideal for a buyer. Today and moving into Q2, buyers and sellers can expect to have fair exposure (although some of the best will still go very quickly), a time on market between 1-120 days (14-60 most common), and "fair" negotiation.
5. Negotiation. While most focus negotiations simply on pricing, there are multiple factors to negotiate in a real estate transaction such as inclusions, closing date (especially important for taxes or collecting rental income), repairs, and closing costs. Over the past 24 months, many saw zero negotiations and sellers demanding the highest price, no contingencies, and no repairs. Today, and moving into Q2 - buyers can expect to make fair negotiations of 0-4% (depending on pricing, house, etc.) on listing price, and reasonably expect the sellers to make contractual repairs (although limitations often occur. Since we are in a more balanced market, it is not reasonable to expect that a buyer will be able to negotiation more than 4% off a listing price, or expect additional seller concessions. *This is often expected by buyers who lose out on offers over and over again, and/or their agent is unable to coach them during the process adequately.
Strong Factors to Consider when Buying Spring / Summer 2023
Interest Rates. We keep up with a number of market factors and top lenders in the area and country to keep a tight watch on interest rates and how they affect the real estate market. Generally speaking, it is expected, forecasted, and understood that mortgage interest rates in the 5-7% range are here to stay for the time being. When rates dipped below 6%, this triggered a bit of a "buying frenzy" and when rates approached 7%, this triggered a "buyer cool off".
Strategies we are seeing savvy buyers take:
1031 Exchange. Many who buy here on 30A have the wonderful opportunity to re-invest the profits from other real estate investment sales into properties here -- often using the money to completely cover any out of pocket expenses, lowering the mortgage, and then using real estate vacation rental income to cover the mortgage payment for a large portion of the year, or cover the note for the entire year - depending. All the while, enjoying several weeks a year of "free" family vacation time (vs. paying out of pocket for another space).
Getting the mortgage product that allows the lowest rates now, with a plan to re-finance in the coming 3-5 years. With mortgage rates leveling out for the time being, some buyers are taking advantage of the slower market to find the home they really want - with a longer term strategy to re-finance when lower rates come.
Strategies we are seeing savvy sellers take:
Making the details count. With more market exposure and increased competition, two things can happen. 1. properties sit on the market longer and 2. properties start getting better to outdo the competition. Sellers who sell for more, quicker, are making the repairs ahead of time, investing in the things that will make the "stand out difference", and pricing "on the line" rather than thinking in the past and outpacing the market (it's never a good idea to price too high and slowly make your way down... it causes buyers to be cautious and suspicious... both of which cost an inordinate amount of money).
