30A and Destin Real Estate Market Forecast For 2023

The real estate forecast for the Destin area remains positive for residents and investors. The Newman-Dailey Real Estate Team is collectively optimistic that the market has stabilized regarding property pricing and interest rates. While inventory is still low, the number of listings on the market month over month is increasing as compared to 2022 (3,504 vs. 1,782 active listings).  Another indicator of our changing market is the increase in the average days on the market (DOM), which is also been rising for listings along 30A and in the Destin area (68 vs 42 days). Finally, the decrease in the average sale price of approximately $45K for January 2023 compared to January 2022 further underscores the market correction.

The demand for real estate in Florida is still strong and many potential buyers and investors are currently on standby in hopes that property prices will continue to normalize and possibly decrease. In the field, our team is seeing an increase in Open Houses and agents returning to a more traditional pace of listings and closing in the Destin area as compared to the previous two years when it was a seller’s market. As the market corrects, real estate agents are no longer inundated with multiple offers for the same listing and are now returning to “tried and true” methods of selling real estate. Due to this shift, Destin REALTORS^® are better able to offer superior client services. 

The market shift has created two schools of thought. Sellers, who think “My neighbor got $XYZ for their property last year, so why can’t I get the same now?”  Simply put, the market has changed, and buyers are now sharing the power in transactions.  What applied then, does not apply today.  Some sellers are adjusting their mindset by approving price adjustments, offering to buy down mortgage interest points, or offering to assist with closing costs.

On the flip side, many buyers are thinking, “I’ll wait until the price drops further to make my real estate investment; I do not want to compete with multiple offers and contracts that do not have contingencies like financing, the sale of their current home, and the like.“ In addition, some buyers are fearful of the rising interest rates, which are actually still at a historically low average rate as compared to the past 50 years. Mortgage lenders are reacting to the increased interest rates by offering improved loan products to help buyers achieve their goal of purchasing a property.

Fannie Mae, Freddie Mac and the National Association of REALTORS^® all forecast a gradual decline in mortgage rates in 2023, with the 30-year mortgage averaging between 6.1% and 6.5% by the fourth quarter of this year. In addition, some forecasters believe that the lower rates might reinvigorate the market and incentivize those with home-buying dreams in 2023.

New construction is also still on the rise within the South Walton and Destin area. New home construction has surpassed the increase the area experienced post-hurricane Opal in 1995. Buyers will benefit from the increased inventory, which will help to drive down prices.

Homeowner insurance has increased, and in many neighborhoods, Homeowner Associations (HOAs) have increased dues as well. This is especially true in buildings larger than three stories where HOA management has become state regulated and these buildings must now be inspected by a structural engineer. Buyers who have owned condominiums in the past may wish to review the new guidelines and Condominium HOA requirements.

Our experienced team of real estate agents is advising clients that investing in Destin Real Estate is a solid investment strategy that has proven long-term growth.

While the Destin Real Estate Market can be difficult to navigate, experienced Destin REALTORS^® can provide counsel, expertise, and guidance.  According to the Emerald Coast Association of REALTORS^® (ECAR), Newman-Dailey’s Real Estate Division consistently ranks among the top 10% of real estate brokerages in the Destin area.  As a small boutique agency with deep local roots, Newman-Dailey’s Real Estate Team provides a comprehensive understanding of the home purchase process, investment property strategies, and vacation rental management.  Choose Newman-Dailey to be your “one-stop shop” for all your real estate needs. Learn more about our real estate team here.

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