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The Reverie Review

Q3 2024 | Market Report

Third Quarter 2024 Review

PRESENTED BY

DISCLAIMER: SOURCE: TRENDGRAPHIX BASED ON DATA SUPPLIED BY THE EMERALD COAST ASSOCIATION OF REALTORS MULTIPLE LISTING SERVICE AND CENTRAL PANHANDLE ASSOCIATION OF REALTORS MULTIPLE LISTING SERVICE. THE INFORMATION, DATA, AND FIGURES CONTAINED HEREIN ARE PROVIDED FOR GENERAL INFORMATIONAL PURPOSES ONLY. WHILE EVERY EFFORT HAS BEEN MADE TO ENSURE THE ACCURACY, COMPLETENESS, AND RELIABILITY OF THE INFORMATION, CORCORAN REVERIE MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE ACCURACY, ADEQUACY, VALIDITY, RELIABILITY, AVAILABILITY, OR COMPLETENESS OF ANY INFORMATION PROVIDED.

Transactions

Scenic Highway 30A

A place unlike anywhere else.

Scenic Highway 30A continues to captivate investors with its unparalleled beauty and exclusive charm. This 28.5-mile stretch along Florida’s Emerald Coast is renowned for its pristine white-sand beaches, crystal-clear turquoise waters, and rare coastal dune lakes. Envision waking up to the serene sounds of the Gulf, spending your days paddleboarding, kayaking, or biking through picturesque trails, and enjoying the quaint, upscale ambiance of communities like Rosemary Beach, Seaside, and Alys Beach. The area offers a unique blend of luxury living and small-town charm, making it a highly desirable destination for those seeking the finest in coastal living. The robust rental market, characterized by high occupancy rates and premium rental prices, continues to provide attractive income opportunities for investors.

Northwest Florida’s economic stability, bolstered by a thriving tourism sector and a favorable tax environment with no state income tax, enhances 30A’s appeal. The area’s continuous development, including new luxury projects and infrastructure improvements, promises to further elevate property values and investment potential. Scenic Highway 30A offers an exceptional blend of natural beauty, vibrant community life, and strong financial returns, solidifying its status as a premier location for both luxury living and investment.

Historical & Present Trends

SCENIC HIGHWAY 30A, FL | 2021-2024

Sales

• Closed Sales Decline with Increasing Days on Market - Closed sales dropped significantly by 19% year-over-year and 21% quarter-over-quarter in Q3 2024, falling to 215 from 265 in Q3 2023. Meanwhile, the average days on market surged by 48% year-over-year, reaching 95 days. This indicates a substantial slowdown in market activity, with properties staying on the market longer, reflecting cautious buyer behavior amid changing economic conditions.

• Contracts Signed Decrease Reflects Buyer Hesitancy - Contracts signed decreased by 7% yearover-year and 6% quarter-over-quarter, suggesting a dip in buyer confidence. This may be influenced by the high costs of borrowing, despite some relief in interest rates toward the end of the quarter. The overall trend shows buyers are less eager to commit compared to the same period last year.

• Sales Volume Reflects Slower Market - Total sales volume in Q3 2024 fell by 20% year-over-year to $506M, down from $629M in Q3 2023. This decrease is even more pronounced compared to Q2 2024, with a 25% drop in sales volume, emphasizing the impact of fewer transactions and lower buyer demand in the market.

• Luxury Market Resilience - Despite the challenges reflected in decreased closed sales and contracts signed, the continued increase in days on market and stable new listings suggest that sellers are not willing to drop their prices significantly. The Scenic Highway 30A area remains attractive, with potential for buyers who have the flexibility to navigate the longer time frames and leverage current market dynamics.

Prices

• Stable Median and Average Sale Prices with Slight Quarter-Over-Quarter Adjustment - In Q3 2024, the median sale price rose by 3% year-over-year to $1.50M, while the average sale price remained steady at $2.358M. The slight 4% decrease in both median and average sale prices compared to the previous quarter reflects some market recalibration, but values are still holding strong compared to last year.

• Increased Listing Prices Show Seller Confidence - New median and average list prices have increased year-over-year (+8% and +10%, respectively) and quarter-over-quarter (+9% and +4%, respectively). These increases demonstrate that sellers are confident in the long-term value of their properties and recognize the premium nature of the Scenic Highway 30A market.

• Navigating a Changing Market - While transaction volumes are down (closed sales -19% YOY, contracts signed -7% YOY), this can also be seen as an opportunity for sellers who present their properties strategically. Buyers are becoming more discerning, but highquality listings in desirable locations continue to command attention. Sellers who price appropriately and highlight the unique appeal of their properties can still attract serious buyers.

• Luxury Market Opportunities - The luxury segment remains strong, with the average list price now exceeding $3M, reflecting a focus on high-end value. For sellers, this means that positioning properties to align with buyer expectations—while understanding current market dynamics—will be key to maximizing returns. The growth in list prices shows that there’s still substantial value in the market, and properties that stand out can lead the way.

Days on Market by Price Range

UNDER $500K

$500K TO $1M

$1M TO $3M

$3M TO $5M

$5M+ $10M+

$500K

$500K TO $1M

$1M TO $3M

$3M TO $5M

$5M+

$10M+

Properties in the mid-range ($1M to $3M) have seen a significant increase in the average days on market, rising by 88% year-over-year to 111 days, indicating a substantial slowdown in buyer activity for this segment. Meanwhile, ultra-luxury properties ($10M+) also experienced a notable rise in days on market, up 61% from last year, now averaging 171 days. Conversely, properties in the lower price ranges (under $500K) have reduced their time on market by 41%, now averaging 70 days, suggesting that more affordable properties are moving faster as buyers seek value in a higher-priced market. The luxury segment ($3M to $5M) has remained relatively stable, with a slight 3% decrease in days on market, pointing to consistent demand in this high-value bracket.

Market Share by Price Range

The market share for properties priced between $1M and $3M has continued to grow, now comprising 53% of all sales, up from 39% in Q3 2021. This segment clearly dominates the Scenic Highway 30A market, indicating strong buyer preference for properties within this price range. Meanwhile, the share of properties under $500K has declined significantly, dropping to just 1% in Q3 2024, reflecting limited availability and a market-wide increase in property values. The $5M+ segment has also seen growth, now accounting for 12% of the market share, up from 9% in Q3 2022, highlighting steady interest in ultra-luxury properties. The shift towards higher price ranges emphasizes the upscale nature of Scenic Highway 30A, where mid to high-end properties drive most transactions.

Inventory

• Active Listings Increase, Focused on High-End Market - Active listings rose by 27% year-over-year in Q3 2024, reaching 914 properties. With the market share showing a shift towards the $1M+ price segments, it’s clear that the increase in inventory is largely driven by higher-value listings, particularly those in the $3M-$5M and $5M+ ranges, which have seen notable growth in market presence.

• Stable New Listings with Emphasis on Luxury Segments - New listings in Q3 2024 remained relatively stable year-over-year (+1%), but the focus on luxury properties is evident. The $5M+ segment grew significantly (+22%), and the $10M+ category saw a 38% increase in new listings. This aligns with the market share data, which highlights that higher price segments now dominate the market, with increased seller activity in these categories.

• Lower and Mid-Range Inventory Decline Reflects Market Shift - Listings in the under $500K and $500K-$1M price ranges have decreased, consistent with their reduced market share. These segments now represent a smaller portion of the market as rising prices push more transactions into the higher brackets, and sellers focus on premium value offerings where demand remains stronger.

• Sellers Positioning for Luxury Demand - The increase in new listings in the $3M+ segments, along with a growing market share in these price ranges, indicates that sellers are catering to premium buyers who remain active despite broader market slowdowns. The current inventory growth offers a robust selection for luxury buyers, emphasizing the high-end nature of Scenic Highway 30A’s real estate landscape.

Breakdown of New Listings By Price Range

$500K TO $1M

$1M TO $3M

$3M TO $5M

$5M+

$10M+

$500K TO $1M

$1M TO $3M

$3M TO $5M $5M+

30A East

SINGLE FAMILY RESIDENCE SALES

30A West

SINGLE FAMILY RESIDENCE SALES

GULF FRONT SINGLE FAMILY RESIDENCE SALES

30A

CONDOMINIUM SALES

Alys Beach

SINGLE FAMILY RESIDENCE SALES

Rosemary Beach

SINGLE FAMILY RESIDENCE SALES

WaterSound Beach

SINGLE FAMILY RESIDENCE SALES

WaterSound Origins

SINGLE FAMILY RESIDENCE SALES

Destin, FL The worlds luckiest fishing villag.e.

Nestled along the stunning Emerald Coast, Destin, Florida, offers a unique blend of natural beauty, upscale living, and robust financial returns, making it a premier destination for luxury real estate investment. Renowned for its pristine white-sand beaches and crystal-clear emerald waters, Destin provides a picturesque backdrop that attracts visitors and investors alike. The area’s scenic beauty, coupled with year-round sunshine, makes it an idyllic location for both vacationers and permanent residents seeking an upscale coastal lifestyle.

Destin is a vibrant and close-knit community, offering an array of exclusive amenities and activities. From world-class golf courses and deep-sea fishing to luxury shopping at Destin Commons and fine dining at award-winning restaurants, the lifestyle in Destin is nothing short of extraordinary. Destin boasts a lively harbor district with bustling nightlife, marinas, and a variety of entertainment options. This dynamic atmosphere, along with a rich calendar of events, ensures there’s always something to look forward to, enhancing the appeal and value of investing in this energetic coastal haven.

Historical & Present Trends