Researched & Written By Richard Eimers, Broker Owner, Beach Road Realty
The forecast for residential real estate sales of resort and second home beach properties in Destin, Miramar Beach, Santa Rosa Beach, Inlet Beach, and along 30A under President Trump’s administration in early 2025 is cautiously optimistic, despite the challenging national market conditions.For the Destin and 30A area specifically:
- Modest growth expected: Home sales in the region are projected to see a slight increase, with the average sold price for homes in April 2024 at $848,135. This trend is likely to continue into 2025, especially for luxury properties.
- Increased inventory: The area has been experiencing a spike in listing activity, with a significant increase in homes and condos for sale. This trend is expected to continue, potentially offering more options for buyers in 2025.
- Potential “Trump Bump”: Some experts anticipate a slight increase in housing activity due to Trump’s administration, likely driven by economic optimism. About 22% of potential homebuyers cited optimism about the economy under Trump as a factor in their decision to purchase.
- Tax policy effects: Trump’s proposed tax reductions could benefit high-income earners, potentially stimulating activity in South Florida’s luxury housing market. This could have a spillover effect on the Gulf Coast’s high-end properties.
- Deregulation efforts: Trump’s push for less regulation in construction could lead to an increase in housing supply by making it easier and cheaper for developers to build. This might be particularly beneficial for resort areas looking to expand.
However, challenges remain:
- Mortgage rates: While rates are expected to decline slightly, they are still projected to remain above 6% throughout 2025. This could continue to impact affordability for some buyers.
- Economic uncertainty: The implementation of new policies and their broader impact on the economy may create some market volatility, potentially affecting buyer confidence.
- Seasonal factors: The resort and second home market in this area is heavily influenced by seasonal trends. The first two quarters of 2025 typically see increased activity as buyers prepare for the summer season.
In conclusion, while the national housing market faces challenges, the unique appeal of the Destin and 30A area, combined with potential positive economic factors under Trump’s presidency, suggests a more resilient market for resort and second home properties in this region for the first two quarters of 2025. However, buyers and sellers should remain cautious and monitor both local and national economic indicators.