To get started, I have an important question. Who do you think will win tomorrow: LSU or Ole Miss? I am curious to get your answer. On to the numbers. We had 8 new listings hit the MB/SJB/WMB market this week, 8 properties going under contract, and 14 price reductions, which is good to see because the inventory increase is at exactly zero. Sellers cut prices almost twice as often as new inventory came online, which continues to show you where the leverage sits right now. We also had 3 sales close this week, another relatively low number compared to the past 2 months. Let's dive into this week's sales.
1120 15th St 4-C
A furnished 2BR/2BA condo in Palmetto Plantation closed at $200,000 cash this week, about 93% of its $215,000 list price. The unit offers 929 sq ft of concrete construction on pilings, built in 2007, and sold at $215.29 per square foot. The gated complex sits about a half mile from the beach with a community pool, but short-term rentals are not allowed, and the unit sold with a long-term tenant in place. Despite the tenant, it went under contract in 17 days. This is the same theme I have been preaching all year: price it right from the jump and cash buyers still show up.
135 Desoto St
A cleared 50×150 lot in the first block of St. Joe Beach closed at $168,000 to a cash buyer, about 96% of its $174,500 list price. This lot hit the market in May at $239,000 and had to come down $64,500 before finally finding a buyer after 124 days, with the final sale landing at roughly 70% of that original number. The 0.17-acre parcel is one of the better-priced lot sales in SJB recently, and the tap fee is already paid, which takes a couple thousand off the table for whoever builds here.
101-2 32nd St
This Waterside Village home closed at $585,000, about 93% of the $629,000 original list price. The 4BR/2.5BA sits on the canal just north of 98 with Gulf views, and is one of the floor plans with a bonus third-floor loft. Built in 2005, the 1,806 sq ft home sold furnished at $323.92 per square foot after 148 days on the market. The seller also covered $11,000 in closing costs and $4,000 in repairs. This is the lowest sale that Waterside Village has seen in over a year.
Area Info/Market Updates
Rates are my only update this week. The Fed raised its benchmark rate by a quarter point on Wednesday, its first hike in three years. Before everybody panics, the Fed does not set mortgage rates. Mortgage pricing tracks the 10-year Treasury yield, and that number actually dropped 6 basis points to 4.94% on Thursday, which nudged mortgage rates slightly lower after the announcement. The lending market had already priced the hike prior to the meeting, which is why the run-up happened before the change and not after it.
Here is where that leaves us. Freddie Mac had the 30-year fixed averaging 6.95% in the week through Wednesday, a steep jump from 6.76% a week earlier. Despite that, looking at Freddie Mac's three-year chart will calm you down a good bit. The 30-year has lived between roughly 6% and 7.5% that entire stretch, and the 15-year has traced the same shape about half a point to three quarters below it. We are in the upper half of that range, but not in new territory.
Zillow's chief economist made the case that getting inflation under control now is what brings rates down in 2027, and he may be right, but 2027 does not do much for a seller who is already 150 days into a listing. For sellers, that means that a bird in the hand is better than 2 in the bush. Be prepared to work with buyers that do make it all the way to offering on your property. With both the financial and the mental effect of the hike, paired with inventory still being a little higher, it certainly is not the time to try and “test the market” at a higher price either. For buyers, the read has not changed. Cash is still king. Two of our three sales this week were cash buyers, and roughly 42% of buyers in the MB/SJB/WMB area this year have used cash.
Freddie Mac 3-Year Mortgage Rate Chart
That’s all for this week’s market update. Thanks for reading!