If you have been actively watching the Perdido Key condominium sales over the past few years you have probably noticed the real estate market here has substantially changed.
How has the condo market changed? To begin with, the available inventory, the number of condos for sale in any given month, has decreased by 72% since it peaked in 2006! If that was not enough, the number of average monthly condo sales has been increasing since the 2006-2007 time frame too.
(The blue data is number of monthly sales while the red is the amount of available condo units)
How has this affected buyers and sellers? On the buyer side, there are more buyers with fewer available condos from which to choose. The result is those properties that are correctly priced to the market sell quickly and many times with multiple offers.
Sellers are now starting to be less flexible on price, that is, they are less willing to negotiate much below list price. Some buyers get very frustrated since they still think this is a buyer’s market when is not.
There no new condos built here since 2006 and there are no plans at this time to build more. With the real estate sales improving across the region there every reason to think this trend will continue as the market conditions shift more to the seller side.
So, what do you do if you are a buyer? Be prepared to act quickly if you find a condo you like. Those buyers that have a “wait and see” approach will only be disappointed by what the improving market does to pricing and availability. This is a great opportunity for buyers that understand the current market. Most importantly, working with a real estate agent that knows this market is essential so you can see what is available here and what represents a good value.