By Richard Eimers, June 2, 2024

The Florida housing market in March and the first quarter (1Q) of 2024 saw an increase in new listings, higher median sales prices, and more inventory compared to the previous year, according to Florida Realtors.

Key Highlights:

1. Impact of High Mortgage Rates: Mortgage interest rates above 6% continue to challenge buyers, particularly first-time buyers. Sellers are also affected when considering new purchases.
2. Sales Figures:
   • Single-family homes: 23,435 closed sales in March, down 10.4% year-over-year.
   • Condo-townhouse units: 9,332 closed sales in March, down 16.6% year-over-year.
   • 1Q 2024: 57,326 single-family home sales (down 3.7%), and 22,811 condo-townhouse sales (down 8.5%) compared to 1Q 2023.
3. Median Prices:
   • Single-family homes: $420,600 in March, up 3.9% from last year.
   • Condo-townhouse units: $330,000 in March, up 3.1% from last year.
4. Inventory Trends:
   • Increased listings in March, though the growth rate has slowed compared to previous months.
   • Inventory for single-family homes at a 4.1-months’ supply; condo-townhouse properties at a 6.6-months’ supply.

Despite the challenges of high mortgage rates, the market shows resilience with steady price growth and a rise in listings.

The following is what is going on in our local real estate market.

In the ever-shifting sands of real estate, the allure of Destin Santa Rosa Beach & Inlet Beach coastal living continues to draw both investors and homebuyers. As we delve into the latest market data, the narrative reveals intriguing trends and valuable insights for those eyeing resort income-producing properties, primary, and second residences.

1st Quarter Analysis: 2023 vs. 2024

The first quarter of 2024 showcases a diverse landscape across key locations. For instance, 30A East saw a notable surge in median sales prices, jumping from $1,450,000 in 2023 to $1,657,168 in 2024, marking a 14.3% increase. This trend highlights the growing demand and perceived value in this area. Conversely, 30A West experienced a slight dip of 0.8%, suggesting a stabilization or minor cooling in that segment.

Destin, with its picturesque beaches, reported a healthy 6% rise in median prices, climbing from $952,500 to $1,010,000. This increase underscores Destin's continued appeal to buyers seeking both primary and vacation homes. Freeport, however, witnessed a 9.5% decline, indicating potential opportunities for buyers to enter the market at a lower price point.

May Comparison: 2023 vs. 2024

The May figures largely mirror the first quarter trends. 30A East maintained its upward trajectory with a 14.3% increase, reflecting consistent buyer interest and robust market conditions. On the other hand, 30A West's slight decrease persisted, reinforcing the need for strategic pricing and market positioning for sellers.

Destin's 6% rise remained steady, while Freeport continued its downward trend with a 9.5% decrease. These dynamics present a mixed bag for buyers and sellers alike.

Insights for Buyers and Sellers

For buyers, the data suggests that now might be an opportune time to explore properties in Freeport, where prices are more favorable. The declines could represent opportunities to secure properties that may appreciate in the future as the market adjusts.

Sellers in 30A East and Destin can capitalize on the rising prices by highlighting the value and unique selling points of their properties. However, those in 30A West might need to adopt more competitive strategies to attract buyers, considering the slight decrease in median prices.

Investors looking at resort income-producing properties should particularly note the upward trends in 30A East and Destin, which indicate strong market confidence and potential for lucrative returns.