Are Foreclosures Really Rising in Florida?

There’s been a lot of chatter lately about foreclosures on the Emerald Coast and across Florida. So, I pulled every foreclosure, bank-owned property, and short sale in our MLS to see if there’s anything we really need to worry about.

Here’s what I found as of Thursday morning:

Condos Currently Listed as Foreclosure, Bank-Owned, or Short Sale (Year to Date)

• Total distressed listings: 8 out of 1,664 condos for sale
  
  
• Average list price: $518,769
  
  
• Average days on market: 194
  
  

The reality? There is not a massive wave of distressed condos hitting the market.

Condos Sold as Foreclosure, Bank-Owned, or Short Sale (Year to Date)

• Total distressed sales: 4 out of 1,572 condos sold
  
  
• Average sold price: $242,450
  
  
• Average days on market: 284
  
  

Again — almost no movement. Foreclosures simply aren’t a factor in today’s market.

To put this in perspective, let’s look back at a time when distressed properties were actually shaping the market.

What Real Distress Looks Like

Back in 2011:

• Total condos sold: 1,830
  
  
• Distressed sales: 389 short sales + 311 foreclosures = 700
  
  
• Percentage of market: 20% (about 1 in 5 condos)
  
  

Yes, that had a huge impact. Prices dropped nearly 60% before the market finally bottomed out.

Distressed Houses (Foreclosure, Bank-Owned, Short Sale)

Homes Currently Listed (Year to Date):

• Total distressed listings: 39 out of 3,768 homes for sale
  
  
• Average list price: $271,744
  
  
• Average days on market: 91
  
  

Homes Sold (Year to Date):

• Total distressed sales: 50 out of 7,725 homes sold
  
  
• Average sold price: $236,603
  
  
• Average days on market: 74
  
  

Compare that to 2011, when 1 in 3 homes sold was distressed, and you can see today’s numbers aren’t even in the same universe.

Key Takeaways

There simply aren’t enough distressed properties in the system to push prices down — not for condos and not for houses.

That said, there are still opportunities. Some owners who bought near the pandemic peak may be squeezed by softening prices, lower rental income, and higher ownership costs like insurance, HOA fees, and repairs. A few of these owners may end up upside down, but there won’t be enough to move the market.

What IS Impacting the Market?

The biggest factor affecting both sales and rental income right now is affordability. People want to buy or rent here at the beach, but the numbers just aren’t lining up for them.

Here’s what’s happening:

1. Wages are up — but not enough.
   Costs for healthcare, insurance, groceries, housing, and taxes have outpaced income growth.
   
   
2. Inflation has cooled — but prices haven’t come down.
   Things aren’t rising as fast, but they’re not getting cheaper either — they’re just staying high.
   
   
3. Debt loads are jumping.
   From student loans to mortgages, people are carrying more debt than ever, and higher interest rates make it more expensive.
   
   

The result? People have less to spend on beach properties. That affects everything from rental income to sales prices to ROI.

People Are Tired

Let’s be real: the last few years have been exhausting. Life feels unpredictable, costs are higher, and optimism is in short supply. What does this look like in real estate?

• People hold off buying → fewer transactions.
  
  
• People hold off vacationing → lower rental income.
  
  
• People back out at the first sign of turbulence → more deals falling apart.
  
  

Yes, it’s a challenge, but it’s also short-term. Real estate is cyclical, and better times are ahead.

The Fundamentals Never Fail

1. Play the Long Game. Markets have ups and downs. Patience always pays off.
   
   
2. Invest Where People Are Going — Not Leaving. Population growth drives demand.
   
   

Florida — and the Emerald Coast in particular — continues to attract:

• more residents
  
  
• more tourists
  
  
• more investors
  
  
• more remote workers
  
  
• more retirees
  
  

Meanwhile, we still don’t have enough homes or condos to meet that demand. Supply and demand will ultimately win, and prices will rise again.

Staying Ahead

Smart investors focus on what people want:

• Drive-to destinations: Families want kitchens; hotels don’t cut it.
  
  
• Work-friendly spaces: Remote workers want longer stays and office setups.
  
  
• Value: Better amenities, pricing, or both.
  
  

To win in slow times, you need to be better than everyone else:

• Better location
  
  
• Better property
  
  
• Better realtor
  
  
• Better property manager
  
  
• Better everything
  
  

If your property is well-managed, well-priced, and well-presented, it will perform well — even in a market like this.

Market Snapshot

Destin Condos — 2024 vs. 2025 (YTD)

• Listings Sold: +5.3%
  
  
• Median Sales Price: -8.9%
  
  
• New Listings: -9.3%
  
  
• Median List Price: -3.7%
  
  

Destin Homes — 2024 vs. 2025 (YTD)

• Listings Sold: +12.9%
  
  
• Median Sales Price: -0.6%
  
  
• New Listings: +10.9%
  
  
• Median List Price: +0.4%
  
  

Transactions are trending up slightly, mostly due to lower prices, but as we head into the holiday season, I don’t expect big swings.

Bottom line: Foreclosures aren’t rising enough to impact the market. What matters most is affordability, demand, and positioning your property for success.

Want insights on upcoming opportunities or your property’s value?

• Investor Criteria Worksheet: Find the best deals before anyone else.
  
  
• Rental Income Review: See where your property stands and increase bookings.
  
  
• Property Value Analysis: Know what your condo or home is really worth.
  
  

Smart investing isn’t about panic — it’s about preparation, positioning, and playing the long game.