Okaloosa County Real Estate Market: From Hot to Not?
TL;DR
The Okaloosa County real estate market has cooled: homes are sitting longer, inventory is rising, and buyers have more leverage than they’ve had in years. Sellers? It’s time to be flexible and smart. If you’re thinking about selling, sooner may be better than later.
From Sizzling to… Sitting
If you’ve been keeping an eye on the local market lately, you’ve probably noticed something. The frenzy’s over. Those bidding wars? Weekend contracts? Long gone. Right now, we’re in a market that rewards patience—and punishes wishful thinking.
The Reality: Days on Market Are Up, Way Up
Homes in Okaloosa County are now sitting around 124 days on average. Just last year? It was 76 days. That’s nearly two extra months waiting for the right offer.
And prices? They’ve barely moved—up less than 1% year-over-year. So no, your home didn’t magically gain $50K in value just because it’s near the beach.
What’s Behind the Slowdown?
It’s simple math:
Mortgage rates are hovering between 6.5% and 7%
Insurance premiums are rising, especially in coastal areas
Cost-of-living increases are making buyers pump the brakes
Buyers are more cautious—and honestly, they have every reason to be.
If You’re Buying: Welcome to Leverage
Here’s the upside: inventory is up 4% from just a month ago, with over 2,300 homes currently on the market in Okaloosa County.
Best part? 63% of those homes are selling below asking price.
This is where strong negotiation makes a big difference—and where working with someone who knows the area (hint: me) really pays off.
If You’re Selling: Be Smart or Be Sorry
The game has changed. You need to:
Price right (don’t chase last year’s comps)
Prep the house like it matters (because it does)
Be flexible (yes, you might need to throw in closing cost help)
The average time on market is up 56% from last year. That means if you don’t stand out, you sit.
Area Snapshot
A few numbers from across the county:
Destin – Holding strong, median price around $627,000
Valparaiso – Down 15.5%, now averaging $329,000
Holt – One of the most affordable spots, with homes averaging $92,500
Where you buy makes a big difference in what you get—and how far your money goes.
Don’t Sleep on Insurance Costs
Florida insurance isn’t cheap, but Okaloosa County holds its own. Average homeowners premium? Around $1,406/year.
But if you’re near the water or in a flood zone, add flood insurance to your budget. And it’s not a “nice to have”—your lender will likely require it.
Learn more about Florida flood insurance from FEMA
What to Expect in 2025
Here’s where things are likely headed:
Mortgage rates: Expected to settle around 6%
Inventory: Likely to continue rising
Prices: May start softening as more listings flood the market
If you’re a seller? Waiting might cost you.
If you’re a buyer? It’s time to get off the fence.
Bottom Line
The Okaloosa market isn’t on fire anymore. But it’s not dead, either.
Buyers: You’ve got options and breathing room.
Sellers: Be strategic, and get expert help to market right.
I'm Jim Whatley with Uber Realty, and I've been doing this for 18 years. Whether you're looking to cash out, move up, or buy your first place, I’ll help you make the smartest move—without overpaying or underselling.
FAQ
Is this a buyer’s market now?
Not quite—but we’re definitely in a more balanced market, especially in mid-price ranges.
Should I wait to buy until rates drop?
Not necessarily. Waiting could mean higher home prices even if rates dip. It’s about your timeline, not market timing.
Are homes still selling at full price?
Some are—but most are not. About 63% are selling below asking price right now.
Do I need an agent if the market is slow?
Absolutely. The slower the market, the more you need expert advice to stand out (as a seller) or negotiate well (as a buyer).
