Scope: Fort Walton Beach and Shalimar only. Status: cooler, more balanced conditions by neighborhood and price band. Use the sections below for buyer, seller, and investor actions.

Local Snapshot: Fort Walton Beach + Shalimar

Use October 2025 indicators (approximate; confirm via local MLS or county appraiser).

• Inventory: up versus 2024. Expect 15–25% more active listings in most submarkets.
• Months of supply: ~3.0–4.0 (balanced range). Faster under $450k, slower $900k+ and waterfront condos.
• Days on market: typical 35–65 depending on pricing and condition.
• Pricing: generally flat to +2% year-over-year. Overpriced listings are adjusting within 2–4 weeks.
• Concessions: more frequent. Seller credits for rate buydowns and repairs are common.

Fort Walton Beach: Market status

• Active inventory: up year-over-year; more choices under $500k. New listings pacing near seasonal norms.
• Price bands with most activity: $300k–$450k single-family; $275k–$375k townhomes/condos inland; $650k+ for bay/bayou waterfront.
• Median days on market: 40–55 for well-priced homes; 60–90 when condition or pricing misalign.
• List-to-sale ratio: ~97–99% when priced to comps; larger gaps on properties needing updates.
• Neighborhood signal checks:
• • Elliott Point, Kenwood, Overbrook: steady demand near schools and parks; typical resale 3–4 bed, 1,600–2,200 sq ft.
  • Ferry Park/Downtown Core: renovated cottages move faster; walkability is a factor.
  • Garniers Beach/Garnier Bayou: waterfront premium; elevation and flood zone diligence required.
• Notes: Downtown improvements at The Landing and Brooks Street continue to support buyer interest.

Shalimar: Price and activity

Early October activity shows stable but selective demand.

• New listings: concentrated in Poquito Bayou, Lake Lorraine, and Shalimar Pointe.
• Price bands: $375k–$550k for updated single-family inland; $600k–$900k along Lake Lorraine/Choctawhatchee Bay; golf-course homes vary by update level.
• Days on market: quicker under $500k; slower for luxury without recent renovations.
• Price changes: more common after 15–21 days if showings are low.

What this means:

• Buyers: you can negotiate credits and inspection repairs. Do not skip flood, wind, and sewer line checks.
• Sellers: price to the last 60–90 days of comps, not last spring. Optimize curb appeal, roof/wind mitigation docs, and insurance disclosures.
• Investors: focus on properties with strong long-term rental potential to Eglin/Hurlburt tenants. Confirm STR rules; not all areas allow vacation rentals.

Neighborhood highlights: Fort Walton Beach + Shalimar

• Commute benchmarks: 10–20 minutes to Eglin AFB (via Eglin Pkwy) and 15–25 minutes to Hurlburt Field (via Hwy 98), subject to Brooks Bridge construction delays.
• Schools: Okaloosa STEMM Academy, Shalimar Elementary, Kenwood Elementary, and Choctawhatchee HS zones drive demand. Verify zoning per address.
• Parks and water access: Ferry Park, The Landing, Meigs Park, and Poquito Bayou boat ramp are value adds.
• STR policy check: City of Fort Walton Beach requires registration; Town of Shalimar and nearby HOAs may restrict short-term rentals. Verify before purchase.
• Utilities/permits: confirm sewer vs septic in older FWB neighborhoods; review permits for roof, windows, and HVAC for insurance credits.

Inventory: Fort Walton Beach + Shalimar

Status: year-over-year listings higher; absorption normalizing.

• Under $450k: fastest-moving segment; multiple offers only on turnkey properties.
• $450k–$800k: balanced; appraisal and inspection credits common.
• $800k+ and waterfront condos: slower; marketing time extends; rate buydown incentives effective.
• Well-priced, updated homes: target 30–45 days to contract.

Rentals: Eglin/Hurlburt demand

Long-term rentals remain strong due to base staffing and contractor inflow.

• Preferred assets: 3–4 bed single-family within 20 minutes of base; fenced yards and pets allowed increase absorption.
• Typical lease terms: 12 months; corporate and military clauses common.
• Vacation rentals: confirm city/town rules and HOA bylaws; occupancy varies by proximity to beaches and bay access.
• Screening: use DoD/military clause compliance and verify insurance requirements.

Investors: signals and projects to monitor

Costs: insurance, wind, and flood remain key variables; condo reserve requirements apply to older buildings.
Local catalysts:

• Brooks Bridge replacement and Hwy 98 traffic patterns affecting FWB access and visibility.
• Downtown Fort Walton Beach Landing Park upgrades and waterfront activation.
• Eglin Parkway corridor improvements and commercial refresh near Shalimar.
  Focus areas:
• Long-term rentals targeting Eglin/Hurlburt workforce.
• Properties with wind mitigation upgrades (roof, shutters, impact windows) to offset insurance.
• Homes outside AE/VE flood zones or elevated with certificates to control premiums.

Flood insurance and hazard checks

Protocol:

• Map flood zones for Choctawhatchee Bay, Garnier Bayou, and Poquito Bayou. Prioritize elevation certificates for waterfront and low-lying streets.
• Compare NFIP vs private flood quotes; verify waiting periods and assumptions.
• Wind/hurricane: review roof age, deck nailing, secondary water barrier, shutters/impact glazing for discounts.
• Sewer and drainage: scope sewer lines in older FWB blocks; confirm drainage easements near bayous.

Economic factors

Interest rates control affordability and days on market. Employment demand is anchored by local defense and services.
Local stabilizers:

• Eglin AFB and Hurlburt Field staffing and contracts
• Defense contractors along Eglin Pkwy and within Eglin’s tech corridor
• Tourism and hospitality along Okaloosa Island and downtown FWB
• Inbound migration to the Emerald Coast

Bottom line for Fort Walton Beach + Shalimar

• Buyers: use the inventory increase to compare options. Keep inspection, wind mitigation, and flood diligence in scope. Negotiate credits as needed.
• Sellers: price to recent comps, document insurance-friendly upgrades, and expect 30–60 days to contract in most segments.
• Investors: prioritize cash flow with realistic insurance assumptions. Target Eglin/Hurlburt tenant demand and verify STR rules.

Operational note: For PCS timelines, start pre-approval and home insurance quotes before touring to avoid delays.

For the latest Fort Walton Beach and Shalimar listings and updates, visit https://tjatera.com/neighborhood-news.