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Florida Panhandle Real Estate Market Predictions 2021 and 2022

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The Florida Panhandle is known for its beautiful white sand beaches — but it’s so much more than that! Based on what you’re looking for, you can find the right place to call home in the Florida Panhandle. 

Here’s what you need to know about some of the different cities in this area and what’s going on in the market. 

Destin

The real estate market in Destin is considered “somewhat competitive” by Redfin with a score of 56 out of 100. In August 2021, home prices in Destin were up 27.5% compared to last year, with a median price of $599,000, according to Real Estate Professionals in Destin. Some homes get multiple offers, while the average homes sell for 2% below listing price and go pending after about 14 days on the market. 

Since Destin is a popular vacation destination, condos are extremely popular in this area. The average price of condos in the area is up 59%, from $411,218 in 2020 to $653,747 in 2021. On the other hand, average prices for single-family homes are up 37.7%, from $817,179 in 2020 to $1,125,076 in 2021, according to longtime real estate professionals in the area. 

With an average price this high, there is an extreme lack of “affordable” housing options in Destin lower than $400,000. Within this “affordable” range, you can expect to see more competition with multiple offers within days of placing the property on the market. 

If you are trying to compete for one of these properties, you need to be prepared. Preferably, you will have a cash offer. You also need to be willing to waive all contingencies — including inspection and appraisal — to have a chance of winning the property. 

Expect to see these trends continue throughout the rest of 2021 and 2022 in the Destin area. 

Fort Walton Beach

The real estate market in Fort Walton Beach is considered “very competitive” by Redfin with a score of 79 out of 100. In August 2021, home prices in Fort Walton Beach were up 23.1% compared to last year, with a median price of $320,000. Many homes get multiple offers, while the average homes sell for 1% below listing price and go pending after about six days on the market. 

Fort Walton Beach is still a nice area, but it’s less touristy than areas like Destin. As a result, homes in this area are considered more affordable. While the inventory in Fort Walton Beach has been low, it experienced a 4.5% decrease from August 2021 to September 2021. Expect to see inventory fall further as we move into the fall and winter, when people are less likely to sell their homes. 

Panama City Beach

Like Destin, Panama City Beach is another hot tourist destination — and its real estate market reflects this. In August 2021, the median listing home price in Panama City Beach was $449,000 — a 30.2% increase year-over-year. On the other hand, the median home sold price was lower at $381,000. 

Realtor considers Panama City Beach to be a balanced market where supply slightly outpaces demand. Currently, there are just over 1,000 homes for sale in the area that range in price from $44,900 up to $13.8 million. There’s a lot of variety in this market. 

Some of the most expensive neighborhoods in Panama City Beach are Miramar Beach and Bid-a-wee Beach. Some of the more affordable neighborhoods in Panama City Beach are Lakeside by the Gulf and El Centro Beach, with median prices under $400,000. 

Prices are expected to increase in this area, so now is an excellent time to jump into the market to get a good deal in these popular areas. 

Pensacola

Pensacola is a larger and less touristy area of the Florida Panhandle that also has more affordable housing. According to Redfin, the real estate market in Pensacola is considered “somewhat competitive,” with a score of 46 out of 100. This means that some homes get multiple offers, with the average homes selling for around listing price after about 47 days. According to Realtor.com, the real estate market in Pensacola is considered a buyer’s market with a supply that’s greater than demand. 

Homes in Pensacola have an average sales price of $225,000, which is 1.7% lower than last year. There are currently over 1,000 homes on the market to choose from in Pensacola. And with such a buyer’s market in the area, it’s easy for you to get a good deal. However, don’t expect these low prices to last as homebuyers and investors flock to the area trying to escape sky-high prices in neighboring areas. 

Tallahassee

Tallahassee is the state capital of Florida. It is also home to Florida State University. As a result, it has a unique mixture of professionals and college students that contribute to a unique real estate market. Like Pensacola, Tallahassee is also considered a buyer’s market by Realtor.com. The median listing price in the area was $250,000 in August 2021 — a 2% decrease year-over-year. 

Homes in Tallahassee sold 5.26% below the asking price on average in August 2021 after about 59 days on the market. Right now, there are tons of properties on the market in Tallassee — nearly 1,500, to be exact. Make sure to check out the popular neighborhoods of Southwood, Killearn, and Betton Hills if you’re interested in buying in the area. 

Final Thoughts on the Florida Panhandle Real Estate Market

Take advantage of the rare buyer’s markets in Panhandle cities like Pensacola and Tallahassee by speaking with the lending experts at Vaster. We guide you through the lending process and help you get into the home of your dreams along Florida’s Emerald Coast! 

 

Sources:

Home Prices Are Up: It's a Seller's Market Along the Emerald Coast | The Destin Log

Pensacola Real Estate Market to Cool Slightly With More Homes on the Market | Pensacola News Journal

Housing Demand in Leon County on Par With 2045 Comprehensive Plan Goals | WTXL Tallahassee

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