The National Market
The national housing market remains constrained by affordability. The average 30-year mortgage rate rose to 6.69%, near its 2026 high, while mortgage applications declined in the latest survey. Inventory continues to improve, giving buyers more choices and making accurate pricing increasingly important for sellers.
The Local Market
More Choices for Buyers - More Competition for Sellers.
Within our primary market area, stretching from Fort Walton Beach to Inlet Beach, July’s absorption rates reveal a market that varies considerably by property type.
With 1,704 single-family homes available and 349 sold during July, the market had approximately 4.9 months of supply. Condominiums had a much higher 10.5-month supply, based on 1,234 active listings and 118 sales. Residential lots had approximately 13.1 months of supply, with 406 available and only 31 sold.
Countywide sales activity remains ahead of last year. Through July, single-family sales increased 7% in Okaloosa County and 28% in Walton County, while condominium sales rose 14% and 34%, respectively. However, higher closed-sale totals and lengthy marketing times can coexist. Sales statistics tell us what buyers purchased—not how many listings remain unsold.
Average sold-price movement was also uneven. Year-to-date, average single-family prices increased approximately 5% in Okaloosa County and 6% in Walton County. Okaloosa condominium prices declined approximately 7%, while Walton condominium prices increased about 13%. These averages are influenced by the mix of properties sold and do not indicate that every property appreciated.
For buyers, the elevated supply of condominiums and residential lots provides greater selection and negotiating leverage. For sellers, the message is straightforward: buyers remain active, but they are highly selective. Properties priced beyond what today’s buyers will support can remain unsold for many months—or even longer than a year.
Exposure puts properties in front of buyers. Price brings them through the door.
The market is not stalled. It is simply distinguishing between properties priced for today’s conditions and those priced according to yesterday’s expectations.
A summary of July’s Average Sold Prices:
Single Family Condo
30-A $2,824,556 (127) $1,905,095 (21)
Destin/Miramar Beach $1,246,242 (66) $ 725,825 (78)
Ft. Walton Beach $ 403,240 (104) $ 439,421 (19)
Ed & Terri Smith Team
Making Business a Pleasure ℠