Destin, Santa Rosa Beach, and Inlet Beach Resort Markets: The 2025 Window of Opportunity
As we move past the presidential election and inauguration, the real estate market in Florida's Emerald Coast is presenting a unique opportunity for savvy buyers and sellers. Despite the distractions of political change, the current market conditions offer a rare chance for those looking to make a move in these sought-after resort areas.
Current Market Conditions
The Santa Rosa Beach housing market, which includes the Destin and Inlet Beach areas, is currently not very competitive. Key indicators include:
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Median sale price: $995K, down 5.2% from last year
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Median sale price per square foot: $517, down 14.3% since last year
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Average days on market: 134
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Homes selling for about 5% below list price
These statistics point to a buyer's market, with prices cooling and sellers becoming more flexible in negotiations.
The Election Effect and Market Hesitation
Historically, presidential elections tend to cause a temporary slowdown in home sales. According to data from BTIG, there's usually a larger dip in home sales in the month leading up to Election Day. This year was no exception, with 23% of potential first-time homebuyers reporting they were waiting until after the election to buy.
However, it's crucial to understand that this hesitation is typically short-lived. Home sales have increased 82% of the time in the year following a presidential election. This pattern suggests that the current buyer skepticism may soon give way to increased activity.
Why Now is the Time to Act
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Seller Flexibility: With the market currently favoring buyers, sellers are more negotiable. This willingness to compromise may diminish as market activity increases.
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Potential for Price Increases: As buyer confidence returns and activity picks up, prices are likely to stabilize or even increase. The current dip in prices offers a window for buyers to secure properties at lower rates.
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Less Competition: With some buyers still on the sidelines, those who act now face less competition, increasing their chances of securing their desired property.
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Favorable Financing Options: Despite higher rates compared to recent years, there are still attractive financing options available, including cash-out refinancing and adjustable-rate mortgages (ARMs).
Financing Strategies in the Current Market
Cash-Out Refinancing
Even with potentially higher rates, cash-out refinancing can be a smart move for homeowners looking to leverage their equity. The concept of blended rates can make this option attractive, especially when compared to other forms of borrowing.
Adjustable-Rate Mortgages (ARMs)
ARMs offer lower initial rates, which can be particularly beneficial in the current market. They're worth considering for buyers who plan to sell or refinance within the fixed-rate period.
Looking Ahead
While the market is currently favorable for buyers, this situation is likely temporary. As we've seen in previous election cycles, buyer activity tends to rebound strongly in the year following an election. Current forecasts project an increase in home sales from 4.6 million in 2024 to 5.2 million in 2025.
Conclusion
For those considering a purchase in the Destin, Santa Rosa Beach, or Inlet Beach areas, the current market presents a unique opportunity. Prices are down, sellers are negotiable, and competition is reduced. However, this window may close quickly as market activity picks up post-election.
Remember, once sellers start experiencing multiple viewings and increased interest, their willingness to negotiate may decrease. If you're looking for the best deal, now may be the optimal time to act before the market shifts back in favor of sellers.
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