My colleague Chris Petrie has generously contributed a great Year in Review for us today detailing and analyzing all the amazing numbers our market experienced in the wild ride in real estate that was 2021. Chris is an Associate Broker with Coastal Realty with whom I’ve worked for a number of years. I greatly respect his insight and experience, and know you’ll enjoy reading what he has to offer.
2021 was quite the eventful year for our not-so-Forgotten Coast in the world of real estate.
Some pretty impressive numbers were recorded, as 205 homes were sold on Cape San Blas, Indian Pass, and the CR/SR 30-A corridor, a 26% increase from the previous year. There was also a total of 338 vacant lots sold in our comparative market in 2021, which was a 72% increase from 2020. Even more astounding is the volume increase, with over $178M in home sales in 2021 (66% increase from 2020) and just under $65M in vacant lot sales (90% increase from 2020). While values are up across the board, existing home sales proved to be in higher demand than ever thanks to our limited inventory, timeline to build, and rising costs of materials thanks to these unprecedented times.
Taking a closer look at the 2021 home sales statistics, our average sales price was $870,295, an increase of 32% from 2020. The median sales price for homes was a bit lower at $680,000, but still a 21% increase from the previous year. Residential properties were certainly moving quicker, as the average days on the market was 61 days, down 42% from the previous year. The median days on the market was just 22 days, a 67% drop, as this number was a little more reflective of just how competitive this market became for buyers as our inventory continued to shrink, especially in the second half of the year. Our list price to sales price ratio stayed just about the same as the previous year, as homes on average sold for just over 97% of their asking price in 2021, while that number was 96% in 2020. A very significant difference this past year, however, was the fact that 31% of the homes sold in 2021 were sold at or above the full list price, compared to 13% sold at full list price or higher in 2020.
Moving on to the 338 vacant lot sales recorded in 2021, the average sales price in our comparative market was $191,999, up 10% from the average sales price in 2020 for a vacant lot. The median sales price for 2021 was $110,000, which was actually an 8% reduction from the previous year’s median sales price. We did see quite a few more lot owners realize this was a good time to list their property for sale, which helps explain the 72% rise in sale numbers and 90% growth in volume. The average days on the market was down to 112 days in 2021 (26% drop), while the median days on the market dropped from 95 days in 2020 to 53 days in 2021 (44% decrease). Once again, our list price to sales price ratio for vacant lot sales was very similar for the past 2 years, as lots sold for an average of 93% of their list price in 2021, and 92% in 2020.
While most of us thought 2021 would be a good year for sellers, I doubt many expected these kinds of numbers and growth in our vacant lot and residential beaches market. 2021 was the busiest and highest producing year on record for real estate sales for the Cape, Indian Pass and the CR/SR 30-A corridor since 2004, and there is no anticipation that demand will slow down significantly in the near future. Our current market is nothing like what we saw back in the mid 2000s, when our economy and local market were saturated with bad loans and investors looking for lucrative returns. Today’s market is saturated with end-users, folks who want to be here and own property for longer than just a “quick flip.” Our biggest challenge in the near term will be our limited inventory, which currently stands at just under half of what we started with in 2021. We do expect to see rising interest rates this coming year, but they should remain friendly on the relative scale. It’s also important to recognize that our robust rental market continues to spur the residential market and development of vacant lots. Properties are cash flowing more than ever before thanks to the growing popularity of our small-town coastal atmosphere.
The gorgeous beaches, bays and natural surroundings, along with the lack of big crowds and traffic remind us all that Gulf County, Florida is a wonderful place to visit and reside. I hope everyone is off to a happy and healthy start to 2022 – here’s to another great year at the beach!
Have questions for Chris? Text or call him at (850) 899-8765, or email at [email protected].