Destin Real Estate Market Year-In-Review 2023 & Forecast For 2024

Navigating Challenges & Seizing Opportunities

The Destin, Florida real estate market in 2023 was marked by a unique blend of challenges and opportunities. The real estate industry saw remarkable shifts, redefining how properties were bought, sold, and perceived. In this year-in-review, we’ll explore the highs and lows by reviewing real estate transactions from the year 2023. In addition, we’ve included year-end figures, categorized by area provided by the Emerald Coast Association of Realtors.

Challenges Faced in 2023:

New Home Sales: The repercussions of supply chain disruptions resulted in higher material costs and delays in new construction. This added pressure to project timelines contributed to inflated prices for new developments.  The demand for inventory in new home construction remained constant throughout the year. 

 Changing Buyer Preferences:  The challenges and uncertainties in previous years have transformed what buyers are seeking in a property.  The opportunity for remote work spurred a desire for more space and flexible home layouts.  The desire for privacy has increased demand for properties in suburban or rural areas. 

Interest Rates: The anticipation of and increasing interest rates affected affordability for buyers, causing some to reconsider their purchasing decisions and budgets. The year began with the lowest interest rate for a 30-year mortgage at 6.12% in February 2023. As the year progressed, we saw multiple rate hikes and the 30-year mortgage interest rate peaked in the month of October at 7.79%.  In December, we witnessed the interest rates decrease by more than a 1%, which has ignited hope for the upcoming year.

Source via: Freddie Mac. All data sourced is deemed reliable. Numbers are considered approximate but may contain errors and are subject to revision.

“High interest rates were our number one challenge in 2023. This slowed the market down considerably and affected the overall appreciation values. Hence, houses are sitting on the market for a longer period. It has a domino effect because the “move up buyers” cannot qualify for the same price property as compared to a year ago,” said Realtor® Diane Green, a 40-year veteran in the industry, and top-performer on Newman-Dailey's Real Estate team.

Home Prices:  Homebuyers are still dealing with the dual challenges of low inventory and high home prices that continue to rise. This scenario challenges buyers to find the features they desire at a budget that they can manage. Some investors have remained on the sidelines looking for a decrease in property pricing, interest rates, or both.

Technology: Embracing technological advancements has become essential for real estate agents. Virtual tours, AI-driven analytics, and digital advertising were some of the key integrations observed in the industry. Top agents have embraced technological resources and are connecting with clients in a new way.

Seized Opportunities in 2023:

Remote Transactions and Digitalization: The accelerated adoption of digital tools allowed for smoother remote transactions, expanding the market reach and convenience for both buyers and sellers. Virtual property tours, the utilization of augmented reality (AR), and virtual reality (VR) Realtors®allowed potential buyers to envision their future homes in immersive detail and make purchases from hundreds of miles away.

Adaptive Marketing Strategies: Agile marketing strategies, leveraging social media and targeted advertising, enabled real estate professionals to reach and engage with a broader audience.  By utilizing data-driven insights, real estate professionals are anticipating the needs and preferences of their clients.  This allowed for a more personalized and efficient homebuying experience.

Diversification in Investments: Real estate investment diversification beyond residential properties, such as commercial spaces, vacation rentals, and co-living/co-working spaces, emerged as a lucrative trend.

Realtor® Diane Green remarked, “When the market gets tough, the competition thins out dramatically.” It is always a benefit to buyers and sellers to enter transactions with a seasoned agent who understands how to navigate the real estate market through its many changes, challenges, and cycles.

2023 Destin Real Estate Market Statics by Area

This is a recap of transactions by area within Emerald Coast Association of Realtors®, including average sales price, days on the market, selling price per square foot, how many homes were actively listed as of December 31, 2023, and how many months of inventory are available for each area:

Source via: Emerald Coast Association of Realtors. Residential Sales for the year 2023.  All data sourced is deemed reliable. Numbers are considered approximate but may contain errors and are subject to revision.

2023 Year in Review – 2024 Destin Real Estate Market Forecast

The year 2023 was a transformative period for the real estate industry.  Success was defined by adaptability, sustainability, and the integration of technology. Navigating challenges and seizing opportunities is crucial in this dynamic real estate landscape.

Forecasts for 2024 are predicting a similar landscape as 2023. The combination of high mortgage rates, steep home prices and low inventory levels are lining up to make the 2024 housing market a challenging one for both buyers and sellers. That said, rates cooled a bit at the end of 2023 and if that continues in 2024, as some experts predict, then market activity should heat up in response.

The assistance and service of a professional Realtor® is vital.  Newman-Dailey Resort Properties has been managing real estate transactions on the Emerald Coast since 1985. Our boutique real estate agency located in Miramar Beach, Florida is comprised of local agents who pride themselves on their ability to provide their clients with an expert understanding of the area and market values.  Our team consistently ranks in the top 10% of agents in the Emerald Coast Association of Realtors®. Learn more about our experienced team members online or call our Real Estate Sales Manager, Melissa Aiken, at 850-837-1071 to help find a REALTOR for your Destin real estate investment. 

View recent real estate listings here to buy or sell your dream home in Northwest Florida.

Published on Monday, January 15, 2024