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2020 trends, coronavirus, covid 19, Destin, Florida, homes, housing, investing, investment property, open house, real estate, Real Estate Trends, second homes, South Walton Beaches
Spring is usually prime home-selling season here on the Emerald Coast—but this spring is a whole different story.
With the coronavirus crisis intensifying and the economy in a tailspin, real estate is in a sort of holding pattern. At the beginning of April while almost every state was under some sort of “stay at home” order approximately 90% of residential Realtors reported buyer interest down according to Realtor.com. That’s the bad news, but as states open up the news has gotten better. As of April 27th, a survey of 2,500 real estate professionals saw that the number had dropped to just 35% of Realtors seeing buyer interest down.
According to Zillow sales will likely drop by up to 60% this spring from what was previously predicted to be a robust spring home buying season. Either way you look at it this spring selling season is going to be a tough one.
April saw our absorption rate, rate at which available homes are sold in a specific market during a given time period, along the Emerald Coast down approximately 20% from April 2019. Zillow predicts that sales will likely drop by up to 60% for the rest of the country this spring. I’m hopeful that we’ll be spared that type of drop off.
The good news is that most are predicting prices will only dip slightly and will recover quickly. Zillow announced it sees no more than a 3% drop by the end of the year and then it will inch back up throughout 2021.
I’m going to predict that in our area we’ll see up to a 35% drop in our absorption rate in May and that sales prices stay steady in May. Here’s where predictions get tricky and why I am only predicting a month out. There is still too much uncertainty in the world with the covid-19 virus. Will there be another wave of outbreaks, when will our area open up our rental market again, how long can owners, who depend on rental income, hold on without any renters. Time will tell.
As bad as this sounds transactions are still taking place and the industry is adjusting to the new normal. There are signs of demand, Zillow is reporting the number of new listings and pending sales are increasing and “window shopping” or viewing homes online is way up. Whether that funnels down to sales after the social distancing lifts remains to be seen. However, agents like myself are adapting to technology that allows for virtual showings, virtual meetings and closing companies are adapting to the new social distancing policies. For now, stay safe and remember there is always a place for you in Miramar Beach and the Beaches of South Walton. Just in case you’re ready for a move to the beach here’s my featured listing this month.
Life on South Walton's Beaches 