Welcome back. This week we’re gonna look at what Navarre real estate prices have done over the last year or so, especially for the months since August 2022. As mentioned, August seems to have been a turning point. Interest rates started to climb and you could just feel it in the real estate market.  So, how about some numbers.

The average listing price in Navarre actually hit a high last year in March 2022 at $500K. From there through September there was not a lot of change. At the end of September we were looking at 485K. As expected, the median listing price didn’t change much until a month or so after the August rate hike. 

Then in October, we saw the first significant drop to 459K, followed by a low of 441K  in November and ending at 450 in December. But as anybody in the real estate business knows, listing prices don’t mean much. It’s what they actually sell for that matters.

In 2022 the average sale price was at its peak in April at a price of $438K. Average sales price dropped to a low in August at 386K, and it ended the year at 400K. It looks like the madness that has been caused with such low interest rates is finally coming to an end, or at least a break.. But keep in mind that five years ago the average sale price was 237K .  It was one hell of a run.

Whether it’s listing prices or whether it’s sale prices, we’ve seen a 9% to 10% drop since the peak in July.  You can find plenty of articles that will tell you it’s just the beginning of a bigger crash like 2008. I seriously doubt that. The conditions are totally different, but that’s a discussion for another time and plenty more correction is possible.

What’s the significance of all this? First and foremost is the direct and strong correlation between interest rates and real estate prices, at least here in Navarre . There may be a one month lag before the market starts to catch up, but it will catch up with current interest rate movement, as it is right now. 

Next week we’ll look at buyers versus sellers market. Make sure to e-mail me at  navarreflhomes@gmail.com with questions/suggestions.

Of note, I meant to do some comparisons with Fort Walton but after looking at it, besides the fact that the average sale price is 320 in FWB vs. versus 400 in Navarre, there was a very close correlation in market trends.