Why Some Homes Near the Coast Are Sitting — And How to Spot a Hidden Gem

If you’ve been watching the market in Fort Walton Beach, Shalimar, Niceville, or Destin, you may have noticed something interesting:

Some coastal and waterfront homes are taking longer to sell.

That doesn’t mean they’re bad properties.
And it doesn’t mean the coastal market is “crashing.”

It means buyers are thinking more carefully — and that’s not a bad thing.

Let’s talk about why this is happening, and how to recognize when a property is a risk… and when it might actually be a smart opportunity.

What’s Changed Recently?

Inventory has increased in many coastal and luxury segments across Northwest Florida. That includes:

• Gulf-front condos in Destin

• Waterfront homes in Fort Walton Beach

• Bay-front properties in Shalimar

• Elevated coastal homes in Niceville

At the same time, days on market have stretched in certain price ranges.

Buyers are still purchasing — but they’re asking more questions, especially about long-term costs.

That’s healthy market behavior.

Why Some Coastal Properties Are Sitting Longer

There are a few consistent factors I’m seeing when homes linger:

1. Insurance Costs

Flood and wind insurance have become a bigger line item in the decision process. Buyers aren’t just looking at the purchase price anymore — they’re evaluating total monthly carrying costs.

2. Flood Zones & Elevation

Properties closer to open water or lower elevations may require additional coverage. Some buyers are cautious about long-term exposure.

3. Older Construction

Homes built before updated hurricane codes may require:

• Roof replacements

• Impact window upgrades

• Foundation reinforcement

• Electrical updates

Those aren’t deal-breakers — but buyers factor them in carefully.

4. Condo & HOA Considerations

In condo-heavy areas like Destin and parts of Fort Walton Beach, association fees, reserve studies, and building maintenance plans matter more than ever.

Buyers are reading the fine print. And they should.

This Doesn’t Mean “Avoid the Coast”

It means understand the coast. There’s a difference.

Waterfront living in Northwest Florida is special. Whether it’s a bay view in Shalimar, a Choctawhatchee Bay property in Niceville, or a Gulf-front condo in Destin — the lifestyle is real.

But smart buyers weigh risk versus reward.

What a Hidden Gem Might Look Like

Sometimes the best coastal opportunities aren’t the obvious beachfront listings.

They might be:

• Elevated inland homes with water access

• Newer construction built to updated hurricane codes

• Homes with impact-resistant windows and reinforced roofing

• Properties outside high-risk flood zones but still near the water

• Waterfront homes that have already had major upgrades completed

These properties often offer:

• Lower insurance premiums

• Reduced maintenance surprises

• Stronger long-term resale stability

And sometimes — less competition.

That’s where experience matters.

How to Evaluate Coastal Property Carefully

If you’re serious about buying near the coast, here are a few things I always recommend:

• Request a preliminary insurance quote before finalizing numbers

• Review flood zone designation and elevation certificate

• Ask about roof age and wind mitigation credits

• Study HOA documents and reserve funding for condos

• Compare total monthly cost — not just list price

Buying near the water isn’t about avoiding risk.

It’s about understanding it clearly.

The Bottom Line

Some coastal homes are sitting because buyers are more thoughtful.

That’s not weakness in the market — it’s maturity.

There are still excellent opportunities in Fort Walton Beach, Shalimar, Niceville, and Destin.

But the right property isn’t just beautiful. It’s financially sustainable.

If you’re serious about coastal property and want to approach it wisely, I’m here to help you evaluate it carefully and confidently.

We’ll look at the full picture — not just the view.

—

Nance