Big Demand, Little Supply
Interview with Councilwoman Eva Jean Dalton
(Photo: Housing Report from October 2021, curtesy of SPI Board of Realtors.)
Within the past year, SPI has experienced an economic boom, to which many ask, how long will this last? Councilwoman and Real Estate Broker Eva-Jean Dalton says resort areas in the United States have been significantly affected since she can view the trends worldwide and in other resort areas. Eva-Jean Dalton works for herself at EJ's Sandbox Realty and has been in real estate for over 30 years.
One common denominator Dalton's noticed is that since interest rates have been low and COVID put restrictions on traveling, more Americans were traveling domestically.
Many who find flying a hassle, including herself, search for vacation spots nearby. "Now that people can travel a little bit, people are going to where they can get to easily (and) where they can drive to easily," said Dalton.
Median Price Rise
Local housing reports show South Padre Island's median price increased from $150,000 to $325,000 when comparing September '20 to '21. "The reason that happens is supply and demand," said Dalton. "The prices will go up as there is more demand for properties."
Reduction in Activity
With fewer properties to sell and a reduction in activity, Dalton stands firm with her experience, noting that real estate agencies can make more in a down market than an up market.
Dalton describes up markets as a time when many people get into real estate, but when the market starts going the other way, many people get out of real estate. "But those of us that have stayed for a long time, (we) still have investor connections and things like that."
For Dalton and other longtime real estate agents, it is normal for the bulk of their business to be on referral.
Future Predictions
As far as she can see, this trend will continue as long as interest rates remain low and the rental market stays strong. "Which means that we have to have a good amount of tourists coming that want to rent not just hotel rooms, but condominiums," added Dalton.
According to Dalton, for the first time in a long time, out of the HOT tax money (collected from condominiums, short-term rentals, and hotels), condominiums are now generating about 60% of the total on the island.
(Pictured: Eva Jean Dalton)
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