The real estate market is an ever-changing landscape. There are many factors constantly affecting how we view and react to market conditions. As we begin coming out of a seller-driven market, it is important to keep the big picture in mind. In the past couple of years, we have experienced historically low interest rates due to unprecedented times. As this trend begins to shift, it is important that we examine all factors such as price point, contingencies, and the current topic of conversation - interest rates.
In reviewing the historical data for 30-year fixed mortgage rates, interest rates have been on the rise. To put things in perspective, we are currently slightly under the 50-year average of 6.13%. The highest mortgage interest rate that we have witnessed in this period was in 1982 when the rate peaked at 16.63%. Did you say wow? We did! The lowest we have seen was in 2021 when the average for the year reached an all-time low of 2.96%. While this was great news for the buyer, the market conditions were countered by steadily rising property values and pricing. During this time, we saw investors dominating the market with cash offers, no contingencies, and sellers wielding the power, which left a challenging market for the average home buyer and subsidized loans.
For 2022, the interest rate has averaged 4.87%. With the rate currently approaching 7%, market trends reveal this is simply a market correction when compared with historical data. In this shifting market, we are beginning to see home prices stabilize, price reductions, buyers gaining some ground in negotiations, and doors starting to open for average and first-time home buyers.
One thing we can all count on is that the Destin real estate market is ever-changing, yet real estate remains one of the best investments for your money. We invite you to learn more about the real estate market by chatting with one of our experienced Real Estate sales agents. Our team is well-versed in discussing Destin real estate trends, as well as the many benefits of homeownership along Florida’s Emerald Coast.
Our team of local experienced Realtors® is standing by to help you navigate this process. Click here to view recent real estate listings in the Destin area.
Not ready to make a real estate purchase? View our collection of 30A and Destin vacation rentals online or call one of our friendly vacation specialists at 1-800-225-7652.
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