Okaloosa County Real Estate Market: From Hot to Not?
let’s talk about what’s going on in our local housing market. A lot has changed in the past year, and if you’ve been watching, you’ve probably noticed things are cooling off.
So… What’s the Deal With Our Market?
Remember when homes were flying off the shelf? Multiple offers, homes under contract in a weekend? Yeah, those days have cooled — fast.
Right now, buyers have way more choices, and sellers? Well, they’re waiting a bit longer to pop the champagne.
Homes in Okaloosa County are now sitting on the market for around 124 days — that's almost two extra months compared to last year’s average of 76 days. And prices? They’ve barely budged, up less than 1% over the past year.
Why the Slowdown?
It comes down to dollars and cents. Mortgage rates have been hovering between 6.5% and 7%, which puts the squeeze on monthly payments.
Insurance premiums are also on the rise — no surprise for a coastal area like ours. Between rising rates, insurance, and general cost-of-living creep, many would-be buyers are saying, “Not right now.”
Good News If You're Buying
If you're house hunting, the tide has turned in your favor. As of late 2024, there were over 2,300 homes on the market — a 4% increase in just one month.
Even better? Roughly 63% of those homes are selling below asking price. That means there’s room to negotiate, unlike last year when buyers were lucky to get a second showing.
Tougher Road for Sellers
Sellers, it's a different game now. Expect longer wait times and more pressure to price competitively. The average time a listing sits on the market is up 56% from last year.
Translation? You’ll need to be patient — and probably flexible on price.
What About Prices Across the County?
It really depends on where you’re looking:
Destin is still high-end territory — median prices around $627,000
Valparaiso has seen a dip — prices are down 15.5% to about $329,000
Looking for affordability? Check out Holt — average prices hover near $92,500
There’s a big range out there, so your dollar stretches differently depending on your zip code.
Don’t Forget Insurance Costs
In Florida, home insurance can make or break a budget. The average in Okaloosa County is around $1,406/year, which is actually better than in many other coastal counties.
But if your dream home is in a flood zone or near the water, expect to tack on flood insurance — and that’s not pocket change.
What’s Next for 2025?
Experts expect mortgage rates to settle around 6% for the next couple years. Not amazing, but better than where we are now.
Inventory will likely keep climbing — good for buyers, but it could put downward pressure on home prices. If you’re thinking about selling, doing it sooner may be smarter than waiting for the next dip.
Bottom Line
Okaloosa County’s market isn’t as hot as it used to be — but it’s still a great place to live.
Buyers: You’ve got more options and less pressure.
Sellers: Be realistic, be patient, and work with someone who knows how to market right in this kind of market.
