CRESTVIEW, Fla. (WKRG) — Okaloosa County realtors are expecting a rise in supply and sales for the housing market going into 2023.

The Emerald Coast Association of Realtors presented the latest market and interest rate status’ for the area to the Board of County Commissioners Tuesday morning.

“Ad Valorem as we know it is about 16 percent of our budget but is something on the horizon for us to be mindful of in terms of interest rates, in terms of inflation, property values and really the market overall,” said the board chairman Mel Ponder.

ECAR treasurer and local realtor Amanda Grandy broke down the housing market from a national range to the local Okaloosa County status.

“New mortgage originations are down about 50 percent, so if you talk to any lender today they are down half of their business,” said Grandy. “As of yesterday, the average 30-year fixed mortgage was 7.08 percent, 15-years 6.36 percent.”

Grandy said these interest rates and lack of new mortgages or loans are affecting the market negatively.

What is most interesting is that in June of 2022 we saw median single family homes at $420,900.
Whereas in August 2022 the median was at $396,300.
7.6 percent change since last year

Amanda Grandy, ECAR Presentation (National Prices)

“The inventory is going up while our expense to purchase a house is going up as well to include insurance,” said Grandy.

Grandy said nationally, there is a three month supply of homes on the market. Locally, Okaloosa County has 2.4-months while a ‘healthy market’ sits at 5.5-months supply.

In terms of people moving across the county, the South had the most activity for housing sales in the last year.

“Florida is a hot market, we have about 45 percent just in the region is the majority of people moving here,” said Grandy.

But even with more people moving, supply and rates continued to increase at the same time, making the current fall-off more noticeable.

Crestview – Fort Walton Beach – Destin Market

“The closed sales in October of this year for our county alone was down 15.8 percent,” said Grandy.

Since February 2022, the overall numbers are trending down. Grandy said houses are staying on the market longer.

“Our sales are going down, our inventory is going up and our buyers are stopping in this market to sell or buy anything,” said Grandy.

Grandy said a lack of housing contracts is causing the recovery time for the current recession to take longer than normal.

Grandy said that overall there is a positive note to come out of the market when it comes to federal interest rates and the coming spring months.

“The good thing is a recession is followed by a recovery,” said Grandy. “What the feds are saying is they’re are going to increase interest rates until February, then sit on it for 12 months to let everything kind of stall.”

Below is the display of the ECAR Presentation:

You can watch the full presentation by Amanda Grandy on the county commissioner meeting website.

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