The National Market
Bank of America is predicting a 10% increase in US home pricing for 2022 and a 5% increase in 2023. But take such predictions with a grain of salt. Take for example Zillow and CoreLogic’s prognostication that US home prices would decline in the spring of 2021. Prices of course did the polar opposite, on steroids. The market expected to see a decline in average prices but actually witnessed a historic, meteoric rise in values and sales volume. Estimates indicated that US homeowners have added more than $10 trillion in real estate wealth to their financial statements over the past 12 months. As we mentioned last month, the Fed is raising the Fed Funds rate by .25% this week. You can find a great article on that subject here: https://rem.ax/3qchImW
The Local Market
The Emerald Coast real estate market does not necessarily comport with the nationwide, broad brush prognostications. Our “bubble-world” continues its growth trajectory as the exodus from shut-down states continues. Additionally, the recent expansions of remote office and work opportunities have fueled much of the buyer influx we see today. And with 1,000 people moving to Florida each day, we continue as one of top growth states in the nation.
Our Emerald Coast has certainly been a beneficiary of that influx. Although mortgage interest rates are not directly tied to the Federal Funds rate, yesterday’s increase will eventually impact mortgage interest rates. With six additional .25% bumps planned for 2022, the cost of financing a home or condo will rise, no question. Higher mortgage interest rates will slow the growth and rates of appreciation. Bank of America’s 2022 estimate for real estate appreciation may be close. We believe that the Emerald Coast will fare far better than average.
If you wish to sell, call us. We probably have buyers lined up and ready. Buying? Let us know what you want. We will beat the bushes until we find an off-market property that checks all your boxes!
Stats at a Glance
Ft. Walton Beach to Inlet Beach
Single Family Homes
• Active For Sale: 333
• Sold: 343
• Avg Active / Avg Sold Price - $2,488,166 / $1,161,383
Condominiums
• Active For Sale: 223 Sold: 233
• Avg Active / Avg Sold Price - $1,194,727 / $640,223
Residential Lots
• Active For Sale: 263
• Sold: 57
• Avg Active / Avg Sold Price - $908,332 / $854,358
Ed, Terri, Kay, Denis, Mary, Nick and Denise
The monthly recap of our market’s diverse Average “Sold” Prices:
Single Family Condo
30-A $1,931,826 $1,047,586
Destin/Miramar Beach $1,330,172 $638,305
Ft. Walton Beach $ 387,588 $423,349
Selling Fine Homes and Condos Since 1987!
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