The National Market:
The spending bill that passed both the House and Senate last week delivered several significant wins for real estate. Notably: 1) a temporary (five-year) quadrupling of the state and local tax (SALT) deduction cap; 2) protection for business SALT deductions and 1031 like-kind exchanges; and 3) a permanent extension of the mortgage interest deduction.
Florida is considering capping or even eliminating real estate property taxes altogether. It’s too soon to know how this could realistically unfold, but the idea is certainly appealing!
The Local Market:
Single Family Home sales continue to outperform Condo sales. Destin/Miramar saw a bump in condo units sold, the result of new construction closings at Seascape Resort. The absorption rates (months of inventory) are still high across Okaloosa, Walton and Bay counties:
• Single Family Homes: 8.3 months of inventory | 118 Days-on-Market to close.
Closed sales averaged 96% of asking price.
• Condos: 12.0 months of inventory | 208 Days-on-Market to close
Closed sales averaged 95% of asking price.
A summary of June Average Sold Prices:
Single Family Condo
30-A $2,017,779 (78) $1,129,864 (11)
Destin/Miramar Beach $1,207,460 (53) $ 782,843 (81)
Ft. Walton Beach $ 460,820 (80) $ 444,024 (32)
Ed Sez: Greater bond market stability and anticipated reductions in the Fed funds rate will go a long way in giving the real estate market a much-needed boost this year.
A lower Fed Funds rate typically eases overall financial conditions, increases consumer confidence, and encourages investment in housing.
Ed & Terri Smith
RE/MAX Coastal Properties
Selling Emerald Coast Real Estate Since 1987!
Inlet Beach - 30A - Santa Rosa Beach - Miramar Beach - Destin - Fort Walton Beach