June 2017: Single Family Home Sales Hit Record Highs
Across the Emerald Coast, the total volume of single family home sales hit record highs in June. Sales, in general, were up when compared to June 2016, as were median prices. Inventory continues to fall and in Walton County, it’s finally in a healthy range which may help explain (in part) the increase in activity.
Will this activity continue through the summer? Only time will tell. Pending sales and the continued decrease in inventory may hamper continued growth in sales over the next few months. If homeowners believe now is a good time to sell – and the data points to “yes” as the answer – the progress may continue.
Single Family Home Sales
Emerald Coast
- Closed sales increased 16%
- 798 total units – highest since current reporting began
- Pending sales increased 2.9%
- Median prices increased 7.8%
- $276,884 – highest since current reporting began
- Inventory decreased 10.7%
- Months supply decreased 18.6% to 4.8 months of inventory
Okaloosa County
- Closed sales increased 18.4%
- 470 total units – highest since current reporting began
- Pending sales decreased 2.3%
- Median prices increased 3.4%
- Inventory decreased 15.9%
- Months supply decreased 25% to 3.6 months of inventory
Walton County
- Closed sales increased 11.1%
- 281 total units – highest since current reporting began
- Pending sales decreased 0.6%
- Median prices increased 12.9%
- Inventory decreased 4.5%
- Months supply decreased 11.8% to 6.7 months of inventory
Townhouse and Condo Sales
Emerald Coast
- Closed sales increased 24.2%
- Pending sales increased 8.7%
- Median prices increased 8%
- Inventory decreased 18.2%
- Months supply decreased 28% to 7.2 months of inventory
Okaloosa County
- Closed sales increased 21.8%
- Pending sales increased 23.8%
- Median prices increased 0.5%
- Inventory decreased 21.4%
- Months supply decreased 32.3% to 6.7 months of inventory
Walton County
- Closed sales increased 22.2%
- Pending sales decreased 3.4%
- Median prices increased 22.6%
- $385,000 – highest since current recording began
- Inventory decreased 8.4%
- Months decreased 16.5% to 8.1 months of inventory
A few things to remember…
Inventory continues to decrease from the year before but is holding steady from month to month with little fluctuation. Other than single family homes in Okaloosa County, inventory levels are at or near healthy numbers. This doesn’t mean there aren’t inventory shortages. Some price points and some areas may not have enough inventory to keep up with demand which can result in new listings in desirable areas being sold quicker.
Pending sales were up year-over-year in June in some areas but in others there was a drop. While it’s easy to imagine pending sales are an indication of the next month’s success, this isn’t always the case. Because pending sales dropped for single family homes in Okaloosa and Walton counties, as well as condos in Walton County, it will be interesting to see what this means for closed sales in July.
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. Unfortunately, if median prices increase too much, affordability can become an issue for some buyers which will slow down sales. It’s too soon to say if this is an issue for the Emerald Coast – especially as total sales volumes continue to hit record post-recession highs.
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.