Richard Eimers Broker Owner, November 2, 2024
As we approach the November 5, 2024 presidential election, it’s crucial to consider how the outcome might impact the real estate markets in Destin, Miramar Beach, Santa Rosa Beach, and Inlet Beach. While local market dynamics often operate independently of national politics, certain policies and economic approaches can influence buyer sentiment and investment patterns.
If Kamala Harris Wins:
Affordable Housing Initiatives: Harris’s focus on affordable housing could lead to increased federal funding for housing development. This might result in more mixed-income projects in areas like North Santa Rosa Beach, potentially increasing inventory in lower price ranges.
Environmental Policies: Stricter environmental regulations could impact beachfront development in areas like 30A East and West. This might lead to increased value for existing properties due to limited new construction.
Interest Rates: A Harris administration might maintain or slightly increase interest rates to combat inflation. This could lead to a continued slowdown in sales volume across all areas, particularly affecting the luxury markets in 30A East.
Tax Policies: Potential increases in capital gains taxes might encourage some investors to sell properties in high-end areas like Miramar/Sandestin Resort, potentially increasing inventory and putting downward pressure on prices.
If Donald Trump Wins:
Deregulation: Trump’s emphasis on deregulation could lead to easier approval processes for new developments. This might result in increased construction activity, particularly in areas with available land like North Santa Rosa Beach.
Lower Interest Rates: Trump’s push for lower interest rates could stimulate buying activity, potentially reversing the current trend of decreasing sales volumes across all areas.
Tax Cuts: Potential tax cuts could increase disposable income, possibly driving up demand for second homes and investment properties in desirable areas like Destin and 30A West.
Economic Stimulus: Trump’s economic policies might lead to short-term economic growth, potentially boosting the luxury market in areas like 30A East and Miramar/Sandestin Resort.
Regardless of the election outcome, some trends are likely to continue:
Inventory Levels: The significant increase in active listings across all areas (61% overall) suggests a shift towards a buyer’s market that may persist regardless of the election outcome.
Price Stability in Luxury Markets: The resilience of average sale prices, particularly in 30A East (8% increase to $2,572,938), indicates that high-end properties may maintain their value regardless of broader market trends.
Regional Variations: Areas like North Santa Rosa Beach, which showed resilience with an 8% increase in both sold volume and average sale price, may continue to outperform other areas due to local factors.
In conclusion, while the presidential election will undoubtedly influence the real estate market, local factors such as the area’s desirability, inventory levels, and economic diversification will continue to play significant roles in shaping the Emerald Coast’s real estate landscape. Buyers and sellers should stay informed about both national policies and local market conditions to make the most informed decisions in this dynamic environment.