The real estate market can be tumultuous at times, with the market shifting in a new direction in what will sometimes appear to be a moment’s notice. In recent months, this segment of the financial market has garnered a command of the headlines as inflation, rising interest rates, and record median home prices have caught the attention of financial forecasters and consumers alike. Knowing what the current climate is showing for a local real estate market is an important piece of information whether you are considering selling an existing property or purchasing a new one. As local markets can deviate some from the nation as a whole, you’ll enter this important transaction with as much information as possible. What is the Destin real estate market like? Let’s see how local experts have weighed in.
The current real estate market in Destin
Supply chain issues and fallout from the COVID-19 pandemic put into motion a series of events that would cause dramatic rises in median home values in Destin in 2020. By mid-2021, the shortage of available homes also began to significantly impact the cost of rentals, as
average rents increased more than 25%.
When the Federal Reserve began to increase interest rates more than 18 months ago, it was believed to be an important weapon against lowering inflation and dropping the median home values to make them more affordable. And while these subsequent increases in the base interest rate did help some at first, the short supply of available homes in Destin has meant that home values remain much higher than they were pre-2020.
The Destin real estate market isn’t the seller’s market that it was over a year ago. But it remains a seller’s market nonetheless, with many homes selling at or above their listed prices. But will this trend continue?
What does the future hold for Destin real estate?
Interest rates will remain a hot topic of conversation, with the Federal Reserve looking to continue the rate increases. This could create a situation in a local real estate market where home prices will begin to drop. But forecasters aren’t so sure about what these future rate increases will mean in Destin.
Florida real estate has seen home values rise by
80% over the last five years. This statewide trend is expected to continue, with the greater Tampa market leading the way. This metropolitan area remains one of the hottest in the nation, as it continues to attract transplants year after year. The housing supply all along the Gulf Coast, including Destin, is thought to continue to be in high demand.
With such a high demand and a short supply, rising interest rates might not have the impact on cooling the Destin market that it will in other parts of the country. It will only be when the number of units available can meet or exceed demand that the median home prices will drop.
This forecast will mean different things for buyers and sellers, however.
What to expect as a buyer in Destin
With home prices and interest rates higher than they’ve been in decades, you might be hesitant to buy a home in Destin. But the forecast shows that you might be in a better position to buy today than if you wait until next year. Here is why.
Rates are expected to continue to increase. Though you’ll pay a higher rate today than you would have a year ago, you’ll save money on your payments if forecasters are correct and the rates tick up. Buying today means locking in on a rate that will likely be much lower than it will be this time next year. Plus, you can always refinance down the road and get a more favorable rate once they drop in the future.
Another item to consider is the amount of equity you’ll have in the home. If the median home values in Destin continue to increase, you’ll be buying a home for less than you would be if you waited a year. Should your home increase in value in that time, you’ll have near-instant equity in it without investing time or money back into it.
How to handle today’s market as a seller in Destin
As a seller, you have different items to consider. You can certainly make a great profit if you sell while the median home values are high. And if experts are correct and the market continues to grow in Destin, you could stand to make even more if you wait.
It’s worth considering that interest rate increases could cool the market some. While it’s not likely that the market will result in drastic drops in home prices in Destin’s future, the short supply of homes available today will likely lead to a faster (and perhaps more profitable) sale than one in six to 12 months.
The expert advice of a real estate agent will be a valuable tool in your decision to sell, as well as when you should list your home. Selling in today’s market in Destin means an agent is more important than ever, as they’ll work to get the most qualified buyers to your home, leading to greater profits at closing.
Ready to make a move in Destin?
The decision to buy or sell a home should be carefully considered. In order to have the best strategy possible, the guidance of a trusted real estate professional is strongly recommended. If you are looking to buy or sell real estate in Destin, a real estate agent from the
Abbott Martin Group has the experience to make the transaction a seamless and stress-free event. Consult with one of their professionals before deciding your next moves.
