Attached is our February 2025 Monthly Newsletter. While high mortgage interest rates persist, indicators are that the spring season will see significant improvement in buyer activity. Competitively priced homes and condos in our market continue to sell within 95-120 days, which is historically considered very reasonable.
As always, please call, text or email us anytime for more information!
The National Market:
From a historical perspective, mortgage interest rates are far from reaching a “slam on the brakes” moment. Buyers are in more of an “ease off the accelerator” phase of this economic cycle. Despite this, nearly 90% of metro areas in the U.S. saw home price increases in the final quarter of 2024, according to the National Association of Realtors.
The big picture? Buyers who need to purchase are moving forward, but with adjusted expectations—choosing $850,000 homes instead of million-dollar properties. Meanwhile, discretionary buyers remain active, many of whom are paying cash.
The Local Market
New buyer activity is on the rise. Since December, online searches and inquiries have jumped 37%, a strong indicator of increased market momentum.
Compared to last year, home sales are down across Bay, Okaloosa, and Walton counties—except for single-family home sales in Walton County, which saw a 15.8% increase.
Market strength isn’t just about Days-on-Market (DOM)—the time it takes to sell a home—but also about Absorption Rate, which reflects the number of months’ worth of supply in a given market. Lower numbers favor sellers, while higher numbers give buyers more leverage.
Currently, our analysis shows:
• 8.9 months of inventory for single-family homes
• 24.1 months of inventory for condos
Expect these numbers to improve in the coming months as buyer demand increases.
A summary of January Average Sold Prices:
Single Family Condo
30-A $2,242,224 $1,831,056
Destin/Miramar Beach $1,390,570 $ 874,956
Ft. Walton Beach $ 448,852 $ 360,688
May your Valentine’s Day wishes come true!!
Ed & Terri Smith
Kay, Denis and Mary