Destin Condo Market Update

At Sea30a.com the Emerald Coast Real Estate market is our business. Our market update series of blog posts will detail the most relevant market statistics for the areas we serve. Today we are going to do a statistical dive into the condominium and townhome market for Destin.  These figures have a 1 month lag so the following information is accurate through the Month of January and is comparing the month of January in 2022 to January 2023. Lets take a look at the most recent data. 

Here are some charts that show some of the key individual metrics in more detail over a longer time period. 

Active Inventory 

Active inventory is what is left at the end of the month. It gives you a proxy for demand. Active inventory has nearly doubled compared to a year ago for this market category. This means there are more properties currently on the market when compared to a year ago and that number should increase heading into peak selling and rental season due to the seasonal nature of Real Estate. Couple the increase in inventory with the decrease in new pending and closed sales seen in the infographic and you can get a picture that we are heading into a market environment starting to favor buyers. 

Closed Sales 

Months Supply of Inventory 

 

Months supply of inventory  = number of active listings / number of closed sales over a 12 month period. This describes what the marketplace is like from a broad perspective. Around 6 months is considered a balanced market, less than 6 months is a sellers market and more than 6 months is a buyers market. We are in the range of a sellers market but it is trending towards a balanced market.  However, if you  look back at the months supply inventory levels in early 2020 it is still roughly half. Based on an increase in Active listings and a decrease in closed sales we would look for the months of inventory to continue to increase over the rest of the year. This means more opportunities and options for buyers in the market. 

 

 

Median Sales Price - Median Sales Price is used in place of Average Sales Price to eliminate outliers on the low and high end of the sales spectrum. This figure represents the middle price of all properties that have sold in this category. The good news for sellers is this number has continued to rise which is great for equity positions. One effect we have witnessed is the value of property relative to its pro-rational gross rental return has decreased as property value growth continues to outpace growth in rental incomes. This will make for a more challenging environment for investors looking to purchase property with specific pro-rational rental return requirements. 

 

Cash Sales as a percentage of closed sales - Cash is a proxy for investors and investment activity. The saying "cash is king" still rings true today and will be even more pronounced this year as interest rates continue to rise. Cash buyers will have the negotiating power as they are not beholden to fluctuations in interest rates affecting their ability to purchase. 

 

 

We are seeing an increase in new inventory, days on market and the total months supply of inventory compared to last year in Destin. Investor / cash buyers have remained an active participant in the market heading into the upcoming peak selling season. Inventory levels are trending towards a market that broadly favors buyers over sellers. In case you missed it check out a similar statistical market update we did for the luxury home market in Inlet Beach here.