I’ve been selling real estate here at the beach for more than 20 years and I can only remember a handful of times where the market was balanced. For all but a handful of years sellers demanded and got increasingly higher prices. They enjoyed bidding wars and buyers giving up almost all negotiating power just to get a property.
And when the market didn’t dramatically favor sellers, it dramatically favored buyers. After the Great Recession, buyers owned the day as sellers had to compete with bank foreclosures and short sales for whatever buyers there were. Prices plummeted.
Almost always it was one side or the other controlling the market with very little room to negotiate. That is not the case right now.
Today, in the Destin, Ft. Walton Beach (Okaloosa Island), Miramar Beach, and Sandestin areas folks selling and buying condos are having to negotiate to put and keep deals together.
But, because of a demand to supply ratio that usually favors sellers this situation won’t last long.
We are already seeing it with the home sales market, sellers are starting to get more of the power swinging back their way.
What happens as we move through the summer and into fall will depend on the Iran Conflict and how long the mortgage “Locked-In-Effect” holds sellers in place. Let’s take a look at both the condo and home markets and how you can better navigate them as an owner, buyer or seller.
Destin Condo Market
The impact of higher mortgage rates, the SIRS requirements and the overall cost to own and operate a condo at the beach seems to have settled in and while some folks are shying away from buying or selling condos at the beach, we didn’t have a wholesale dropoff here in Destin.
Demand
Closed Sales Year To Date (YTD): The number of listings sold is down -3.7%, moving from 492 closed sales in 2025 to 474 so far this year. June was a sales killer with condo closings off -29.2%. That could be sellers holding off selling while they capture high summer rents. We’ll see.
Sales Price
Median Sales Price (YTD): Prices are not falling dramatically. They have eroded some for sure as they are down -3.0% compared to last year, dropping from $500,000 last year to $485,000 this year. An interesting thing to note is Median Sales Prices have been down 5 of the first 6 months. That trend is something to watch.
Supply
New Listings (YTD): The total number of new listings is down -4.5% meaning buyer options are declining. However, June saw new listings jump up 13.9% but like the median sales price, the number of new listings have been down 5 of the first 6 months so far this year.
Median List Price (YTD): Prices are flat showing a 0.0% change year over year (YoY). It was $499,900 at this time last year and today its at $499,999
Condo Owners- How to Navigate This Summer’s Market
If you already own a condo and plan to keep it, this summer is not a time for passive ownership. It is a time for proactive defense with regard to your asset.
- Audit your HOA Immediately: The deadlines for Structural Integrity Reserve Studies (SIRS) are impacting property values. We see it every day. You need to get with your HOA and thoroughly review your building’s reserve funding strategy.
- Evaluate Your Net Cash Flow Against Rising Costs: With the ban on reserve waivers now fully in effect, HOA dues and master insurance premiums are jumping and squeezing short-term rental ROI. Weigh your rental revenues against rising (non-debt) carrying costs and make sure you’re still getting the highest and best use of your capital.
- Be Smart: If your building has solid, fully funded reserves and has cleared its engineering milestones, you’re holding a premium tier asset will retain its value. If your building is underfunded (<30% reserves), prepare financially for an inevitable special assessment or a significant hike in monthly fees.
Condo Buyers: Extreme Due Diligence & Aggressive Negotiation
Buyers hold a unique and strong leverage position this summer. There are sellers (474 transactions so far) but the deals are price-sensitive or quality driven, either way you must be careful.
- SIRS Compliance is Your Leverage: Do not fall in love with a view, a pool, or updated counter tops. Your very first question to your agent must be: “Can I see this building’s completed SIRS report and current reserve balances?”
- Target the DOM Buyers need to use the longer days-on-market (DOM) as leverage to write aggressive, value-driven offers. Also, look for motivated sellers who are facing upcoming assessment deadlines.
- Be Smart: Treat buildings that are non-compliant or underfunded as high-risk, cash-only plays, because getting conventional financing is unlikely. Focus on well-managed, fully compliant buildings so even if you get only a slight discount on price you’ll sleep a lot better knowing no “unexpected special assessments” are coming next year.
Condo Sellers: Buyers Want Good or Cheap Properties
Rule 1: Good (A Level) properties always sell first and get better prices. For everyone else (B and C properties), if you plan to list your condo this summer, your success will be entirely determined on your willingness to price to the current market, not the peak of 2024.
- The Market Rewards Speed, Not Indecision: Total new listings entering the market are down 4.5% YTD, so you have less competition than last year. However, buyers are extremely-aware of carrying costs. If you launch your (B or C) property with an aspirational (A property) overpriced listing, the market will aggressively penalize you by letting it sit without a buyer.
- The Summer Chasing Trap: Do not chase the market downward with small price cuts every three weeks. In a shifting market, a listing that sits becomes “stale” rapidly. Buyers track these properties and automatically assume a special assessment is brewing or something is structurally wrong.
- Be Smart: Be entirely transparent. Package your building’s clean milestone inspections, insurance disclosures, and funded reserve documents directly into your marketing materials upfront. Price your condo 3% to 5% below your most ambitious competitors right out of the gate. By executing a realistic pricing strategy, you will capture the active summer buyer pool and get out cleanly before the fall post summer rental season slowdown hits in the fall.
Is Your Condo an A, B or C Property?
What category does your building fall into? Click below to check your property’s position before the fall slowdown.
Destin Homes Market
The homes in the Destin and Miramar/Sandestin market are to an entirely differently beat than the condo market. Houses are in a premium-fueled seller’s market.
Demand
Closed Sales YTD: Total sold listings are up 14.8% Year-over-Year (YoY), moving from 290 closed sales in 2025 to 333 so far this year.
Sales Price
Median Sales Price YTD: Prices are exploding rather than eroding, up a massive 25.9% compared to last year. The median price shot up from $895,000 last year to $1,127,000 this year. An interesting thing to note is that prices have been up more than 17% in 4 of the first 6 months of the year.
Supply
New Listings YTD: Total number of new listings is up 4.5%. Breaking away from the condo trend, sellers had been eagerly jumping into this hot market, bringing 675new listings to the market so far this year compared to 646 last year.
List Price
Median List Price YTD: Sellers are starting to show signs of fading confidence with list prices down 2.5%. The median list price dropped from $1,180,000 at this time last year to $1,150,000 today. Not a huge drop but median list prices have been down 4 of the first 6 months so far this year.
For Home Owners: The Wealth Effect
If you own a house in Destin, you are sitting on a goldmine. Unlike condo owners, you aren’t sweating building special assessments.
- The Reality: Sales data shows that your home’s value shot up by almost 26% over the last year.
- Be Smart: If you love your home and have a low fixed-rate mortgage (or no mortgage), you may want to sit back and enjoy it. It’s an asset with incredibly high SaleAbility because of high demand and relatively low inventory. You don’t need to do anything but watch your net worth grow.
For Home Buyers: The Competitive Squeeze
Buying a house in Destin this summer is going to require deep pockets, speed, and absolute clarity about what you want. The “balanced market” of the condo world does not exist in the homes for sale space.
- The Reality: You are competing in a market where the median home price is firmly over $1.1 million. Sales transactions are up 14.8%, meaning other buyers are actively snapping up homes even though mortgage rates remain high.
- Be Smart: You have very little negotiating room on price right now. Sellers are getting their asking prices because single-family homes in Destin are in high demand. If you find a house with high SaleAbility—meaning it’s move-in ready and in a prime location—you need to make a strong, clean offer quickly, or another buyer will.
For Home Sellers: The Ultimate Cash-Out Window
If you have been thinking about selling your Destin house, this summer is your prime window to capture peak dollar volume.
- The Reality: You have massive leverage. Buyers are hungry for single family homes. Even though more neighbors are listing their homes this year (YTD new listings are up 4.5%), buyer demand is easily swallowing up that inventory.
- Be Smart: Do not get too greedy and overprice your home way past the neighborhood comps, but recognize that your SaleAbility is at an all-time high. Make sure your home looks pristine for summer vacationers, highlight that there are no mandatory condo boards calling for special assessments, and prepare for a fast, lucrative sale.
Do You Know Your Value?
Single-family inventory is low, and buyer demand is peaking right now. Find out what your Destin home is worth in today’s $1.1M+ market.
Sneak Peek: A “Good Buy” Investment Property
Colton is currently analyzing a condo that checks the boxes for a strong investment property. Want to see the numbers before it hits the general public?
Respond to this email wth the subject line: Send Me Colton’s Deal.
Final Thoughts
Our job is to help you understand and maximize your position—whether you are buying, selling, or holding. In a market where the “safety net” has disappeared, clarity matters. We can run a SaleAbility Review that shows:
- Your Competitive Position: Are you in the “Top 10%” or the “Stuck” category?
- Your Real Buyer: Who they are and what they are actually paying for in today’s climate.
- The Exit Window: Whether the current 12% surge in volume is your window to exit or an opportunity to scale.
Clarity first. Decisions second.
You can also reach our team directly at 850-654-3325, or simply click the link below to schedule a time.
Committed to your success,
John Moran – CEO
The Smart Beach Investor | Keller Williams Realty At The Beach Team