After a few years where the market felt as calm as a sunny day on the bayfront, 2026 is shaping up to be the year the current starts moving again. Here in St. Augustine, that means new opportunities for buyers and sellers.
Whether you’ve had your eye on a beach cottage in Vilano, a family home on Anastasia Island, or a historic property in Lincolnville, the latest forecasts suggest that the coming year could bring smooth waters.
More Homes Are Expected to Sell
Across the country, housing experts predict an uptick in home sales. Locally, we’re already seeing more homeowners testing the market again. Earlier this year, we got a little worried: the number of homes coming to market was 50% higher than homes that were being sold. We talked to a number of local homeowners who had put their home on the market but had taken it off for one reason or another (their mortgage rate was solid, they wanted to move but didn’t have to, etc.) Now, they’re getting ready to come back to market.
Many people pressed pause on their moving plans over the past few years due to affordability challenges and high interest rates. As 2026 approaches, that button is easing up (and we’ll get to the why of that in a second).
More inventory means more options, whether you’re ready to move closer to the ocean, invest in a rental property, or even downsize into a new construction townhome with less maintenance.
Mortgage Rates Could Continue to Ease
Let’s talk about the number everyone’s watching: mortgage rates.
After peaking near 7% this year, rates are slowly trending down. Don’t be shocked if we see rates dip into the low 6s and, if things line up the way they’re looking, the high 5s by mid-2026.
That might not sound dramatic, but even a small reduction in rates can make a big difference in monthly payments and overall affordability. For buyers hoping to make St. Augustine home, that’s a welcome change.
Remember: when rates climb, they take the escalator; when they drop, they take the stairs. The road to lower rates won’t be perfectly smooth, but the general direction is encouraging, and it’s creating more confidence among both buyers and sellers.
Home Prices Should Stabilize
Another encouraging sign: home price growth is expected to be steady and sustainable.
While prices in St. Augustine have seen increases over the past few years, especially in sought-after areas like Vilano Beach, Davis Shores, and specific neighborhoods on Anastasia Island, experts predict more moderate growth moving forward.
That’s great news for both sides of the table:
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Buyers gain predictability and breathing room for planning their budgets.
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Sellers can still count on strong equity and continued demand from people relocating to Northeast Florida for our lifestyle, schools, and coastal charm.
Even in neighborhoods where prices have cooled slightly, long-term appreciation remains strong. St. Augustine’s mix of historic character, beach proximity, and a tight-knit community ensures continued value and desirability.
Why This Matters for You
After two slower years, 2026 looks poised to bring renewed movement and healthier market conditions. With sales projected to rise, rates trending lower, and prices stabilizing, the market is shifting towards balance. If you’re been waiting for the right moment to make your move, it may be closer than you think.
So, what should you do now?
If you’re a buyer, make sure you are pre-approved, so when the right house hits the market, you can make an offer quickly and smoothly. If you’re a seller, schedule a listing appointment with a trusted local real estate team like The Newcomer Group! Talking to a real estate agent doesn’t mean you need to make a move immediately, but will set you up for success in the long run.
The Newcomer Group is the Real Estate Team for You
With over $750 million in sales and 1,600 homes sold, The Newcomer Group knows St. Augustine like our backyard because, well, it is!
Give us a call at (904) 201-9393 or visit our offices at 770 A1A Beach Blvd and learn how we can help you on the next step of your real estate journey today.
