What does the future hold for the 2025 Real Estate Market on the Emerald Coast?

What does the future hold for the 2025 Real Estate Market on the Emerald Coast?  In order to answer this question, we need to first look at where we ended 2024.  Caution:  I’m about to hit you with some nerdy statistics.  (If you want the summary – skip to the end).  I’m going to look at single family home sales (including townhomes) in Okaloosa County and also Niceville.  I will leave condos out of the data since they are a completely different animal.

Okaloosa County

The median sales price in December 2024 was $330,750, down -8.02% from $359,588 from the previous month and equal to December 2023.  The average sales price in December 2024 was $410,328, down -10.46% from $458,284 from the previous month and -15.67% lower than $486,575 from December 2023.

The number of properties sold in December 2024 was 272, up 5.43% from 258 from the previous month and 9.24% higher than 249 from December 2023.

The average days on market (DOM) is the number of days a property is on the market before it sells. An upward trend in DOM tends to indicate a move towards a buyer’s
market, a downward trend tends to indicate a move towards seller’s market. The DOM for December 2024 was 84 days, down -9.68% from 93 days from the previous month and 37.70% higher than 61 days from December 2023. The December 2024 DOM was at its highest level compared with December 2023 and 2022.

The number of properties for sale in December 2024 was 1,019, down -14.15% from 1,187 from the previous month and equal to December 2023. The December 2024 inventory was at its highest level compared with December 2023 and 2022. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for
buyers.

Niceville 32578

The median sales price in December 2024 was $408,000, down -18.38% from $499,900 from the previous month and -18.38% lower than $499,900 from December 2023.  The December 2024 median sales price was at its lowest level compared to December 2023 and 2022. The average sales price in December 2024 was $545,976, equal to the previous month and -4.18% lower than $569,805 from December 2023.

The number of properties sold in December 2024 was 38, down -2.56% from 39 from the previous month and 52.00% higher than 25 from December 2023.

The average days on market (DOM) is the number of days a property is on the market before it sells. An upward trend in DOM tends to indicate a move towards a buyer’s market, a downward trend tends to indicate a move towards seller’s market. The DOM for December 2024 was 54 days, down -34.94% from 83 days from the previous month and 50.0% higher than 36 days from December 2023. The December 2024 DOM was at its highest level compared with December 2023 and 2022.

The number of properties for sale in December 2024 was 111, down -15.91% from 132 from the previous month and 15.62% higher than 96 from December 2023. The December 2024 inventory was at its highest level compared with December 2023 and 2022. A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The December 2024 MSI of 2.92 months was at a mid-level compared with December 2023 and 2022.

The Bottom Line Summary

What does the future hold for the 2025 Real Estate Market on the Emerald Coast?  Based on what happened post-election and based on the Fed pulling back on the number of predicted interest rate cuts for 2025, I would expect 2025 to be only slightly better than 2024.  Home prices will see a slight increase (let’s face it, inventory is still low).  Sellers will continue to offer concessions because of the days on market.  Interest rates will be only slightly better than last year.  Sellers should list sooner knowing that it may take longer to sell.  They should also be realistic about pricing.  Buyers should look for homes with an assumable mortgage with a nice low interest rate.