The National Market:
For now, the general consensus for 2025 suggests mortgage interest rates will hover in the 6-6.5% range, with annual real estate appreciation projected at 3-4%. However, these forecasts remain subject to change as new economic data emerges. In resort markets like ours, consumer confidence plays a pivotal role in shaping market trends. Given its largely discretionary nature, the performance of resort markets across the nation more closely aligns with luxury sectors such as yacht sales.
The Local Market:
Compared to last year, home and condo sales—measured by the number of units sold—remain down across Bay, Okaloosa, and Walton counties. However, the trend is beginning to stabilize. When markets recover, they do so gradually rather than experiencing a sudden surge.
Days-on-Market (DOM) and Absorption Rate reflect the strength of a given market. While lower numbers favor sellers, the higher numbers give buyers more leverage.
Our current analysis shows improving trends:
• 8.6 months of inventory and 137 Days-on-Market for single-family homes
• 18.6 months of inventory and 168 Days-on-Market for condos
Expect these numbers to improve in the coming months as buyer demand increases.
A summary of February Average Sold Prices:
Single Family Condo
30-A $2,473,051 $ 718,208
Destin/Miramar Beach $1,116,312 $ 699,664
Ft. Walton Beach $ 463,811 $ 466,267
Ed Sez: Both buyer and seller participation will strengthen as consumers adjust to the new market norms. While mortgage interest rates are expected to decline, a return to 3% rates is not yet on the horizon.
Ed & Terri Smith
Kay, Denis and Mary
“Making Business a Pleasure” ℠