Both sides having to negotiate. That almost never happens at the beach.
I’ve been selling real estate here for more than 20 years, and I can count on one hand the number of times this market has actually been balanced. For most of my career, one side or the other has controlled the table — sellers demanding top dollar and getting bidding wars, or after the Great Recession, buyers picking through foreclosures while prices fell. Very little room to negotiate, ever, no matter which side was winning.
That’s not what’s happening right now.
Today, in Destin, Ft. Walton Beach (Okaloosa Island), Miramar Beach, and Sandestin, buyers and sellers are actually having to negotiate to put deals together — and keep them together. But because the demand-to-supply ratio here almost always favors sellers eventually, I don’t expect this window to last long. We’re already seeing the home market start to tip power back toward sellers.
What happens as we move through summer and into fall will depend a lot on the Iran conflict and how long the mortgage “lock-in effect” keeps sellers from listing. Let’s look at both the condo and home markets, and how to navigate each one whether you’re an owner, buyer, or seller.
Destin Condo Market
Higher mortgage rates and SIRS requirements have raised the real cost of owning a condo at the beach — but we haven’t seen a wholesale drop-off here in Destin. Some buyers and sellers are cautious. The market itself is still moving.
Demand Closed Sales YTD: Down 3.7% — 492 closed sales in 2025 versus 474 so far this year. June was the softest month, with closings off 29.2%, possibly sellers holding units back to capture peak summer rents. Worth watching.
Sales Price Median Sales Price YTD: Down 3.0% — from $500,000 last year to $485,000 this year. Prices have been down in 5 of the first 6 months. That trend deserves attention.
Supply New Listings YTD: Down 4.5%, meaning buyer options are shrinking — though June saw a 13.9% jump. Median List Price is flat year over year: $499,900 then, $499,999 now.
If You Own a Condo and Plan to Keep It
This is not a summer for passive ownership — it’s a summer for proactive defense of your asset.
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- Audit your HOA immediately. SIRS deadlines are already affecting values. Sit down with your HOA and review the building’s reserve funding strategy in detail.
- Weigh your cash flow against rising costs. With the ban on reserve waivers now in full effect, HOA dues and master insurance are climbing and squeezing your rental ROI. Compare your rental income to your rising non-debt carrying costs.
- Know which tier you’re in. A building with solid, fully funded reserves that’s cleared its engineering milestones holds its value. A building under 30% reserve funding should be preparing financially for a special assessment or a real jump in monthly fees.
If You’re Buying a Condo
You have leverage this summer — 474 transactions closed, but many of these deals are price-sensitive or quality-driven. Use that carefully.
- SIRS compliance is your leverage. Before you fall for a view or a pool, ask your agent: “Can I see this building’s completed SIRS report and current reserve balances?”
- Use days-on-market as leverage. Longer DOM means room to write value-driven offers. Look for sellers facing upcoming assessment deadlines.
- Treat non-compliant or underfunded buildings as cash-only, high-risk plays — financing will be difficult. Favor well-managed, fully compliant buildings, even at a smaller discount. You’ll sleep better without a surprise assessment next year.
If You’re Selling a Condo
A-level properties still sell fast and get top price. Everyone else — B and C properties — will succeed this summer based entirely on willingness to price to today’s market, not 2024’s peak.
- Speed is rewarded, indecision is punished. New listings are down 4.5% YTD, so you have less competition than last year. But buyers are watching carrying costs closely — overprice a B or C property like it’s an A, and it will sit.
- Don’t chase the market down in small increments. A listing that sits gets labeled “stale” fast, and buyers assume something’s structurally wrong or an assessment is coming.
- Be transparent, up front. Package your clean inspections, insurance disclosures, and reserve documents directly into your marketing. Price 3–5% below your most ambitious competitors from day one, and you’ll capture the active summer buyer pool before the post-summer rental slowdown hits.
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 single-family market is moving to a completely different rhythm than condos — this is a premium-fueled seller’s market, full stop.
Demand Closed Sales YTD: Up 14.8% — 290 closings last year versus 333 so far this year.
Sales Price Median Sales Price YTD: Up 25.9% — from $895,000 last year to $1,127,000 this year. Prices have climbed more than 17% in 4 of the first 6 months.
Supply New Listings YTD: Up 4.5% — 675 new listings so far this year versus 646 last year. Sellers, unlike in the condo market, are jumping in.
List Price Median List Price YTD: Down 2.5% — from $1,180,000 to $1,150,000, with list prices down in 4 of the first 6 months. A small early sign of softening seller confidence, worth watching even inside a hot market.
If You Own a Home
You’re sitting on a genuine wealth event — your home’s value is up almost 26% over the past year, and unlike condo owners, you’re not staring down a special assessment.
That doesn’t mean the only move is to sit still. A 26% run-up is exactly the kind of moment worth pausing on: not because anything is at risk, but because you’re near a peak, and peaks are worth knowing the exact number on. If you love the home and you’re on a low fixed-rate mortgage, staying put is a perfectly good decision — just make it an informed one instead of a passive one.
If You’re Buying a Home
This will take deep pockets, speed, and total clarity on what you want. The negotiating room that exists in the condo market doesn’t exist here. Median price is over $1.1 million, and transactions are up 14.8% even with mortgage rates still elevated — other buyers are actively competing for the same homes you are. If you find one that’s move-in ready and in a prime location, move fast and clean. Another buyer will.
If You’re Selling a Home
This summer is your prime window to capture peak dollar volume. Buyers are hungry, and even with more of your neighbors listing this year (new listings up 4.5%), demand is easily absorbing the extra inventory. Don’t get greedy past the neighborhood comps — but know that your leverage right now is about as strong as it gets. Make the home look its best for summer buyers, highlight that there’s no condo board or assessment risk attached, and move toward a fast, well-priced close.
Find Out Where You Actually Stand
Every section above comes back to the same question: is your specific property in the “A” tier capturing this market, or the “B/C” tier that needs a strategy to compete? A CMA can’t really answer that — ask three realtors and you’ll get three different opinions, because a CMA isn’t a measurement, it’s a guess shaped by who’s doing it and how badly they want the listing.
The SaleAbility Score is built on consistent data instead — rental performance, booking history, location, views, building health, seasonality — the same inputs, the same result, every time. It’s free, takes about two minutes, and most owners are surprised by what they find.
Whether you’re holding, buying, or selling — condo or home — this is where to start.
One More Thing
Colton, an investment specialist, is currently underwriting a condo that checks every box for a strong investment property — priced right, clean building financials, solid rental history. It hasn’t gone public yet.
Want the numbers before anyone else sees them? Just reply: “Send me Colton’s deal.”
Final Thoughts
Whether you’re buying, selling, or holding, our job is to help you see your real position clearly — not guess at it. That’s especially true right now, in a market where the old safety nets (predictable pricing, predictable demand) have thinned out on both sides.
Get your SaleAbility Score above, or reach our team directly at 850-654-3325 to talk through where you stand.
Committed to your success,
John Moran – CEO
The Smart Beach Investor | Keller Williams Realty At The Beach Team