Well a recent U. S. Census Bureau’s American Community Survey reveals that the median age of an owner occupied home is now 37 years old. This means that half of all homes in the U.S. were built prior to 1980. Why is this happening? A decline in residential construction in the past decade.
Another 13.5% of the country’s total housing units were built prior to 1940, while 19% were built before 1950.
Homes built between 2010 to 2016 make up 4% of the inventory. About 70% of homes built after 2010 are owned by Generation X (age 35-54).
So it brings me back to how old is your home?
Currently there are 2,487 homes for sale in my own market. Of those, 943 of them were built after 2010 (37.9%) and 1,230 were built from 1980 to 2010 (49.5%). The remainder were built prior to 1980 with the oldest home for sale built in 1882.
Pier Park, located in the heart of the world’s most beautiful beaches has over 120 stores! Get a detailed map of shops, restaurants and other locations.
Source: Pier Park, Pier Park North and West Pier Park
Pier Park is certainly OPEN for Business. Christmas shopping is brisk.
The Fed announced today that they will slow down the rise of interest rates for the time being and not raise them as fast as they originally planned for 2019. However we are not out of the woods yet. Unemployment is lower today, but factor in the announcement of GM’s factory closings and we may have a new problem lurking ahead. Payroll is not keeping pace and the gap between workers payroll and the ability to pay for housing have become a huge problem.
Although banks are no longer allowing loans on good faith and you must have documentation to qualify for a home loan what is happening is that those that have loans are refinancing more than ever and they are not using the money on their homes. They are taking vacations, buying luxury items, and paying for medical bills.
Student debt from school loans are at an all time high with no sign of any way out for the younger generation to buy a home until much later in life. They are still living at home or renting. Car debt loans are also at an all time high. Keep an eye on the stock market and economy, but I do see some red flags to be aware of as we prepare to go through 2019.
Click on the link to bring up an article on how to prepare your home for a home inspection.
How to Prepare for a Home Inspection
Do you like to buy real estate as an investment? I cannot think of a better time to buy than now in Panama City Beach, FL. The aftermath of Hurricane Michael have left thousands homeless. Most are looking for places to live while they rebuild their homes. I am talking about long term investment properties. All of the rental properties are already rented and FEMA have sent people as far away as Alabama and Georgia to live while they are rebuilding their homes. These folks want something closer to home during their rebuilding months to keep an eye on things.
So it is an excellent time to buy a long term investment to hold for two years and then later sell. I am talking about the $150,000 to $250,000 price range. If you are looking for a place to put your money, please reach out to me for a list of recommended investment properties.
After Hurricane Michael, I am evaluating the local real estate market as well as the global market. Locally, many properties that were for sale are no longer standing. It will take a long time to rebuild the Panama City Beach market and increase the inventory. With inventory being so low, those few properties that are still standing and are available will have higher demand. However, with our market being a “resort market”, how many vacationers will be wanting to come to this area for vacation compared to less affected and just as beautiful areas along the Gulf Coast?
Nationally, the Federal Reserve continues to raise interest rates. New home sales have fallen 22% across the country. Here locally, it will take years to see new inventory as the permitting requirements will be at least a 4-6 month process just to begin the rebuilding process and abide by the newer hurricane building codes. New residential investments have fallen for the last 3 years.
The market to the west of Panama City Beach is were to invest right now. Now only was it unaffected by Hurricane Michael, but there are some really beautiful properties available. With more and more looking for rentals as temporary housing during the rebuilding process, the rental market and rental rates will be in a strong demand.
Check out areas like Miramar Beach, Destin, Okaloosa Island and Navarre Beach as alternative investment areas. I work all of these areas and will be happy to assist you with your next investment. I will look out for your investment dollars. I am here to help.
Economists’ note: Closed Sales are one of the simplest—yet most important—indicators for the residential real estate market.
There were 424 sales in August of 2018. This was a 7.1% increase from the following year. It will be interesting to see what happens post Hurricane Michael. Many homes that were for sale are no longer even standing. Today there are 1,920 properties for sale in Bay County.
108 of the 424 sales were cash sales. That represents a decrease of cash buyers over the past year. This number is down 11.1%.
The Median Sales price in Bay County (Panama City Beach and Panama City) was $212,250 overall. The Average price was $252,987.
It will be interesting to note what the October sales report will look like post Hurricane Michael. I will let you know by December, because it takes a while for the statistical reports to come out.
My feeling is that we will see a sharp downturn of sales due to properties no longer being available for sale and the fear of future buyers of future hurricanes. We are all still trying to get back to some type of normal and this may take years.
Total deaths due to Hurricane Michael now stands at 45. We are Panhandle Strong! If you are looking to buy, make sure you are buying a property built in 2005 or newer. Most all of these survived due to the building codes being strengthened since then.
There are some beautiful condos Gulf Front that are still very attractive. One of the best complexes with the least amount of damage was the Grand Panama Beach Resort. I would be happy to take you there and show you around. Just call me for an appointment at 850-420-2480 or email me at KellyKleinSoldMine@Gmail.com
Thank you! Kelly