Santa Rosa Beach, Fla., has been a popular destination for decades due to its emerald green waters, powdery soft sand, and charming neighborhoods. Visitors often fall in love with the area and choose to make it their permanent home. Others recognize its investment potential and seek to purchase real estate.
However, knowing what is happening in the market is essential before buying property. Read on for insight into the current state of the Santa Rosa Beach, FL, real estate market.
Santa Rosa Beach housing market
As of July 2023, over half the available properties in Santa Rosa Beach are single-family houses
. Of these, 10% are priced at $5 million and above. When browsing these top-tier homes, you’ll find the majority are either on the beach or have direct beach access. For single-family homes, over half the properties are listed between $1 million and $4 million.
Santa Rosa Beach has a growing market for condos
. They typically range in cost between $400,000 and $10 million. Like single-family homes, the most sought-after condos in Santa Rosa Beach have beach access; the highest developments offer spectacular views of the Gulf Coast. The most popular condos have at least three bedrooms, three bathrooms, and 2,000 square feet.
Throughout the year, interest rates have been fluctuating. Starting at 6.5% in May, they gradually increased
to 6.81% in the first week of July. Market experts are predicting a decrease in rates by the end of the year as long as no unforeseen events occur.
Although Santa Rosa Beach is a highly sought-after location, many homeowners hesitate to sell due to the current high-interest rates. Potential buyers are also cautious about entering the market. However, purchasing property in Santa Rosa Beach is generally a good bet.
If rates do indeed decrease, savvy investors can benefit from the drop. It is impossible to predict market changes, but taking advantage of a decrease in interest rates would be a wise move.
As we have seen, Santa Rosa Beach has various housing options, including houses and condominiums. Approximately 21% of these properties are occupied by renters
, with the median rent
in 2021 being $1,769.
Among renters, three-bedroom properties are the most in-demand, followed by two-bedroom and four-bedroom options. The location is a good choice for individuals interested in leasing out properties.
Walton County housing market
Walton County, Fla., contributed over half of the $11 billion in home sales
on the Emerald Coast in 2022, with South Walton being the most significant contributor to this growth. The median sale price in Walton County
for June 2023 was $700,000, marking a 2% decrease from June 2022. On a positive note, the inventory for June increased
to 1,258 properties, a 32% increase year-over-year.
Although dollar volume, closed sales, and new listings are down, there is no indication of a recession. In recent years, the high demand and low supply led to prices exceeding their normal range. With the market now stabilizing, prices will adjust to their expected levels.
How COVID-19 affected Walton County real estate market
The pandemic brought significant changes to the real estate market, particularly in Florida, where the impact was felt the most. The influx of remote workers and other individuals caused a surge in demand and a depletion in the supply of homes, leading to a significant rise in prices. However, after three years, prices are gradually starting to adjust.
Santa Rosa Beach foreclosures
Foreclosure rates rose across the country in May 2023. In the state of Florida, one out of every 2,470 homes had started the process of foreclosure
. Experts expected the rise due to the economic downturn. Year to date, there have been 14 foreclosure filings in Santa Rosa Beach
While foreclosure filings and starts went up and down throughout the year, only two homes in Santa Rosa Beach have completed the foreclosure process so far this year. In May of this year, there were two more foreclosure filings which is a 33% drop
in filings and starts for the area year over year.
Should you invest in Santa Rosa Beach?
The prices in Florida have surged significantly higher than the national average in recent years. The real estate market may experience a slight drop in prices due to various factors such as low inventory, seller hesitation, and interest rates, among others. Despite this, it does not necessarily imply that investing in Santa Rosa Beach is not wise. Instead, the market may adjust to align with the rest of the country.
It is unlikely that the market will crash because it would require a lot more inventory than is currently available in the area for prices to take a dramatic downturn. Also, Santa Rosa Beach, along with the rest of 30A, is a hot spot for vacation rentals, and that does not seem to be changing. However, some areas do not allow short-term rentals, so if you are purchasing an investment property, it is essential to ask before the bidding starts. Here are just two beautiful neighborhoods where homeowners can rent out their property.
NatureWalk at Seagrove
Naturewalk at Seagrove in Santa Rosa Beach, FL, is a sought-after community nestled along 30A, near Seaside and Watercolor. This charming haven seamlessly blends modern living with serene nature, offering quick access to the Gulf's crystal blue waters through its forest trail to the renowned 30A beaches. Tucked amidst the forest, the community provides tranquility while remaining connected to Hwy 395 for convenience. At the heart of Naturewalk lies The Gathering Place, an amenity center boasting pools, a hot tub, kiddie pool, firepit, grills, and more. Explore miles of trails, fitness stations, and access to Point Washington's trails, all encapsulating a harmonious blend of coastal lifestyle and forest retreat.
Gulf Place is a well-designed residential area with beautiful tree-lined streets featuring mid and low-rise condominiums. This community is home to a mix of permanent residents and renters. The Town Center is a popular destination for locals and visitors, offering charming boutiques and locally-owned restaurants, all within easy walking distance along the area’s wide sidewalks. An ample green space surrounds the amphitheater that provides live music for entertainment, while walking and cycling trails offer opportunities for outdoor recreation.
Find your dream home
Are you looking to invest in Santa Rosa Beach real estate? Tanika O'Brien
is here to help! With Tanika’s real estate expertise
and extensive area knowledge, she can make finding your dream home or investment property a breeze.
If you have any questions about homes for sale in Santa Rosa Beach or want to list your property, call Tanika
. She would be happy to assist with your real estate needs.*Header photo courtesy of Shutterstock