Prices Are Up, But Sales Are Dropping Along Scenic 30A

Posted by Jamie Conley on Thursday, June 23rd, 2022 at 2:46pm.

While sales prices on 30A have risen as much as 35% year-to-date, the number of sales has dropped by as much as 28% year-to-date. It would appear our market has finally turned a corner, which in no way means disaster is waiting around that corner. We all recognized the housing frenzy brought on by the pandemic would eventually fade. And thanks, in part, to new lending regulations, our market and that of the nation are in far better health today than what precipitated the crash in 2008.

A few key factors impacting our market locally:

  • Available inventory is still at record lows
  • Prices continue to rise
  • Mortgage rates surged from 3% to 6% within just a week

Several national headlines are reporting record-setting price reductions within the last 4-6 weeks, due to weakening buyer demand in the overall housing market. We were curious to know if the same thing is happening here locally. This week, we looked at several categories in our market to compare with what we’re hearing in the news.

In a year-over-year comparison, we discovered that 30% of listings had price reductions in May 2021 and 37% of listings were reduced in May 2022. However, when comparing the period between June 1-20, 2021 vs June 1-20, 2022, the rate of price reductions is unchanged at 28%.

While it’s possible we may see price reductions tick up in the coming months, the fact remains that the state of real estate is hyper-local. What’s happening in other markets is not always reflective of what’s happening here in South Walton and on 30A. While the economy will always play a part, factors such as demand are a strong counterbalance. Florida is still one of the top states that people are migrating to since and before the pandemic. And even though our market is primarily second-home ownership, South Walton and Scenic 30A remain a beloved destination that keeps on enduring in an ever-changing market.

Current Market Trends on Scenic 30A:

Active Listings: Pre-pandemic, 993 properties were available in May 2019. The market frenzy brought available properties down to just 286 properties by May 2021, a decline of 71%! In May 2022, there were 335 properties available, representing a 56% increase compared to last May.

 


New Listing Activity: New Listings appear to be gaining strength but fell short in a May over May comparison. While 313 properties were added in May 2021, just 286 properties were added this May, representing a 9% decrease.

 

Under Contract Activity: Last May, there were 235 properties under contract, this May there were 149 properties under contract, representing a 37% decrease.

 


Sold Activity: In a three-year comparison, sold activity peaked in July 2020 with 318 properties being sold. A May over May comparison shows 267 properties sold in May 2021, while 158 properties sold in May 2022, representing a 41% decrease.

 

Price Reduction Activity: In this three-year comparison, price reductions peaked at 37% in May this year, compared to just 30% of properties in May 2021.

For nearly 30A years, we've been assisting our clients to navigate the ebb and flow of our market. Reach out with any of your questions, no matter how big or small! We'd love the opportunity to assist you with your real estate goals.

Leave a Comment

Format example: you@domain.com
Format example: yourwebsitename.com