The National Market:


Mortgage interest rate levels continue to hamper real estate sales. Last week’s 10-year Note Auction did not provide any relief, but the subsequent 30-year Bond Auction performed better. It’s a mixed bag. Mortgage interest rates are still expected to decline over the course of the year.

Nationally, the inventory of homes for sale has been on a downward trajectory. Available inventory has actually declined by 8.6% since October 2024. From 953,000 units to 871,000 units for sale. This bucks previous trends wherein inventory levels tend to rise in lean markets. A much clearer picture should develop by February.

The Local Market:


The first quarter here often sees a good spurt of growth as many buyers wish to purchase in time to be prepared for the spring vacation rental season.  Although not as strong as in some years, we are seeing improving numbers in terms of online and in-person buyer activity.

Locally, SFH (Single Family Home) inventory levels have declined by 11.2% since October. Year over year, SFH sales (in terms of units sold) have declined by 6.9%. Condo inventory levels have increased by 8.5% in that same period. Y-T-D condo sales have declined by 23.5%, much the result of increased insurance costs and statutorily mandated engineering inspections. 

Regardless, the properties here which are being aggressively marketed and properly priced continue to sell. Average DOM (Days-On-Market) for sold Single Family Homes in December was 124.  Average Days-On-Market for the Active yet-to-be sold homes stands at 194, and counting. Expired SFH average was 228 DOM before dropping out of the system. Sold condos averaged 129 DOM. The yet-to-be sold condos averaged 267 DOM and counting. Expired condos averaged 250 DOM before dropping out of the system.

Ed Sez: Unlike smoke which rises and never falls, the real estate market waggles, wiggles and wobbles. Today we are standing on the beach facing a rising tide. Low inventory, short Days-On-Market and values that are holding up well. The 2025 prognosis is good!

A summary of December Average Sold Prices:


                                                                  Single Family                     Condo

30-A                                                          $2,327,925                   $1,848,200                               
Destin/Miramar Beach                         $1,201,878                   $   855,925                  
Ft. Walton Beach                                    $   371,411                   $   443,227    

Ed & Terri Smith
Kay, Denis and Mary