MONTHLY NEWSLETTER – SEPTEMBER 2017
Many smart prognosticators are now predicting that we may be heading for a period of even lower Treasury yields and home loan rates. These smart people believe that within a month or two we will enter a secular bull market (higher prices, lower yields and home loan rates) for Treasuries which will last from 12 to 14 months.
Low inflation is said to be one of the most significant contributing factors. Look for the terms disinflation (lower rate of inflation) and deflation to become more commonplace. Massive increases in the money supply (M1) and near zero Fed funds rate have resulted in lethargic GDP growth. Low home loan interest rates will help keep the American Dream alive 🙂
As is the case in many markets across the nation, Emerald Coast real estate inventory supplies are tight. The average days on market for a properly priced (within 5% of market value) single family home will sell within 60 days. Condos will take longer at 150 days. The record for “days on market” sale last month was a condo that had been on the market for more than 8 years!
Y-T-D single family home sales are up significantly. Okaloosa, Walton and Bay counties are +9.17, +13.1 and +12.72 percent respectively. Condo sales are similarly up, specifically +23.02, +17.3 and +22.42 percent. Residential lots however have declined significantly in all three counties, specifically –25.3, -7.8 and -6.48 percent.
We expect a brief cooling of the market as things re-stabilize in the aftermath of Harvey and Irma. Disruption of the fuel refining pipeline and the potential impact on insurance companies will cause short term challenges. These challenges will pass quickly.
We give thanks that the Emerald Coast was spared the wrath of Irma and our thoughts and prayers are with all those impacted by these horrible storms.
Please call, text or email us for an update anytime!