Archives for September 2017

August 2017: Ending Summer on a High Note

Labor Day might mark the unofficial end of the summer season on the Emerald Coast but August always has a feeling of finality to it. This is when summer fun comes to an end for many families. Buyers along the Emerald Coast ended their summer with new homes – both single family properties as well as condos and townhomes. As a result, when compared to August 2016, sales are up, inventory is down, median prices are mostly up (with a few exceptions), and the local real estate market continues to move in a positive direction.

               Single Family Home Sales

Emerald Coast

• Closed sales increased 8.6%
• Pending sales increased 6.8%
• Median prices increased 5.8%
• Inventory decreased 11.7%
• Months supply decreased 19.6% to 4.5 months of inventory

Okaloosa County

• Closed sales increased 9.1%
• Pending sales increased 4.7%
• Median prices increased 2.3%
• Inventory decreased 13.9%
• Months supply decreased 22.7% to 3.4 months of inventory

Walton County

• Closed sales increased 8.7%
• Pending sales increased 9.2%
• Median prices increased 4.5%
• Inventory decreased 4.4%
• Months supply decreased 11.1% to 6.4 months of inventory

               Townhouse and Condo Sales

Emerald Coast

• Closed sales increased 7.0%
• Pending sales increased 5.6%
• Median prices saw no change
• Inventory decreased 19.7%
  • Record low since current reporting began in 2011
• Months supply decreased 29.5% to 6.7 months of inventory
  • Record low since current reporting began in 2011

Okaloosa County

• Closed sales increased 15.2%
• Pending sales saw no change%
• Median prices decreased 24.6%
  • Median prices in August were $226,250, the lowest since December 2015
• Inventory decreased 22.3%
• Months supply decreased 34.1% to 6.0 months of inventory

Walton County

• Closed sales increased 9.2%
• Pending sales increased 42.6%
• Median prices decreased 7.7%
• Inventory decreased 11.4%
• Months decreased 18.9% to 7.7 months of inventory

A few things to remember…

Inventory continues to decrease from the year before. Other than single family homes in Okaloosa County, inventory levels are at or near healthy numbers. Inventory shortages are occurring across the Emerald Coast. 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. This will also lead to a slow-down in sales as well as median price increases until new listings hit the market in greater numbers.

Pending sales were mostly positive in August when compared to last year. While it’s easy to imagine pending sales are an indication of the next month’s success, this isn’t always the case. The biggest jump occurred in Walton County for condos and townhomes. It will be interesting to see how this pans out for September sales.

Single family median home prices continue to increase. In August, condo and townhome prices took a hit. Because sales were positive, this may mean that buyers were looking at more lower priced units in August than in the past. While investors continue to be interested in the Emerald Coast, August is a time for vacationers to realize they’d like to own a little piece of our area. This may have contributed to the increase in sales and the decrease in median prices.

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.

3 Things to Know After Hurricane Irma

Here on the Emerald Coast, we’ve been fortunate not to take a direct hit from any of the recent storms. But, like me, you probably know people or even have family and friends who lived in areas along Irma’s path and are dealing with the aftermath. Share this information with them, but also keep it in mind for the next storm that hits our area. 

File Those Hurricane Claims

While the Emerald Coast was mostly spared from any major damage this time, this is important for all homeowners affected by Irma and any other hurricane. Any amount of damage from a hurricane should have an insurance claim filed. Don’t avoid filing an insurance claim out of fear of increasing your premiums. While this may be true for other types of insurance claims, hurricanes are considered acts of God and don’t follow the same insurance rules, according to Security First Insurance founder and president Locke Burt.

The claim may not be enough to receive a pay-out for because of your deductible but you’ll have it on the record as potential damage. And if another hurricane hits, and you sustain more damage, part of your deductible has already been used for the year. Hurricane deductibles used to be required per hurricane event, but in 2004 that changed when we were hit with four in one year.

Rebuilding Will Take a While

Ask anyone who remembers Ivan, Opal, or Andrew – let alone Katrina and many other storms – rebuilding takes a while. The higher the devastation, the longer rebuilding lasts. With Hurricane Harvey in Texas and Louisiana and Irma here in Florida, resources are stretched thin. Contractors and builders were already doing great business before the storms with waiting lists for new projects. The rebuilding process takes that wait and amplifies it for everyone. The heaviest hit areas might not be completely rebuilt for several years.

Regardless of whether you sustain hurricane damage or need any other kind of work done on your home, always work with a licensed contractor. Check to make sure they’re licensed by the state of Florida by going to the Division of Business and Professional Regulation website. If they’re a local contractor, you can also find out if they’re a member of the local home builder’s association at the Building Industry Association website. Do your homework before you hire someone, or the rebuilding effort could take much longer than necessary.

IRS Postponing Deadlines for Affected Areas

Hurricane Irma hit just before an important IRS payment deadline – September 16. In response, the IRS has postponed some tax filing and tax payment deadlines for businesses and individuals. You have to be located in an area designated by the Federal Emergency Management Agency (FEMA) that qualifies for individual assistance to be eligible. Businesses and individuals who had already received extensions may or may not qualify – check with your tax professional to be sure.

The tax relief provided by the IRS is automatic if you’re located in a designated area. You don’t have to contact the IRS to take advantage of the help. Florida Realtors reports, “Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at 866-562-5227. This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.” So if you live on the Emerald Coast but have property or a business affected, or you’re one of thousands of volunteers, give that number a call to get the tax relief you deserve.

Before, during, and after hurricanes hit, there’s more information than most of us can handle or hear. A lot gets lost as we focus on the saved lives and lost homes. The information that can help individuals, families, and businesses might be missed by those who need it most. 

Understanding Mortgage Recasting

If you’ve had a mortgage for any amount of time, you’ve heard of refinancing especially when interest rates go down. You’ve probably received offers in the mail for it, too. Most homeowners dream of the day they can pay off their mortgage. But most people have never heard of mortgage recasting.

What is Mortgage Recasting?

An alternative to refinancing your mortgage, mortgage recasting can occur when you pay a large sum of money towards your principal balance. Assuming your mortgage lender offers the service, your loan will be reamortized and recalculated based on the lower balance. Your interest rate and loan terms will stay the same, but the payment will be lower.

Benefits of Mortgage Recasting

Although it’s a little-known option, there are several benefits to having your mortgage recast.

• Your mortgage payment will be lower.
• You can continue to make the same payment you’ve always made but more will be applied to your principle balance.
• It’s simpler than refinancing because no credit check or appraisal is required.
• Mortgage recasting can be much less expensive than refinancing.

What You Need to Know About Mortgage Recasting

Like all things in life, mortgage recasting isn’t for everyone. While it may sound like a great way to use a large sum of money or a good way to lower your expenses, not everyone can recast their mortgage.

• Not all loans are eligible. FHA and VA loans cannot be recast.
• Not all lenders offer mortgage recasting. You’ll have to contact your mortgage lender to find out.
• Some lenders charge a fee. It may be a few hundred dollars or more.
• Jumbo and non-conforming loans aren’t always eligible.

Whether or not you’re eligible to recast your mortgage, you should ask yourself one question. Would your money be better spent on credit card debt, student loan debt, in savings, or some other way? The idea of paying down your mortgage or lowering your housing costs sounds good but you may have other ways to lower your expenses.

If you think you may be a good candidate for mortgage recasting and want to put lump sum inheritance or proceeds from a sale to good use, contact your mortgage lender. They can help you understand all your options.

Do You Have Flood Insurance?