Real Estate Market Overview

Destin and Surrounding Areas

Condo Market -- Local condo prices peaked in June 2005 and have depreciated 25 to 30 percent from then until now.  Homeowners insurance, taxes, management fees, and interest rates have all increased at a greater rate than the potential gross rental proceeds.  The increase in out-of-pocket expense of condo ownership has drive a lot of former investors out of the condo market, and drive about 4,000 current owners toward the "exit".  The resulting oversupply / under-demand has worked to the benefit of buyers still wanting to realize the dream by delivering quality inventory at once again affordable prices.

Since 2005, a market correct has been underway in all markets.   With We all knew that home price and condo prices could not double every 4 years.  It simply was not sustainable.   Depreciation was inevitable.   All markets (condo, homes, and vacant land) have shared in the market downturn over the past 18 months. Vacant land was hit hardest followed by condos and then homes.  Property values are anywhere from 15% to 25% below their Summer 2005 highs.

A "Perfect Storm" of tax and insurance increases has noticeably reshaped the real estate market over the past 18 months.   This sudden deluge of  cost increases caught many by surprise.   Sellers who rushed property to the market at first,  have now begun to take a more restrained approach and many have removed properties from the "for sale" inventory.

The local real estate prices appear to be stabilizing.  While the inventory is still higher than normal, a distinct downward trend is occurring.  Inventory levels in most markets have fallen about 25-30%since the summer of 2005 signaling good news for a return to a more balanced and normal buyer-seller market.