St. Augustine’s Housing Market Cools: Buyers Regain Leverage as Sellers Adjust to New Reality

Written by:

Alejandra Rodriguez

Date:

03 Mar 2026

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Three years ago, buying a home in St. Augustine required waiving inspections, submitting offers without seeing the property, and competing against multiple bidders. Today, the pace has slowed. Buyers are taking time to evaluate homes, ask questions, and negotiate terms — marking a return to a more typical market dynamic.

After a period of intense competition and rapid sales, St. Augustine’s housing market has cooled. Properties are staying on the market longer, and buyers who were previously sidelined by bidding wars now have more opportunities and bargaining power.

Current Market Conditions

Homes priced between $350,000 and $650,000 are now spending 80 to 110 days on the market, a significant change from the two-week sales common in 2021 and 2022. As a result, sellers are rethinking their pricing strategies, and buyers have more choices. “You’re not seeing seven offers on every house anymore,” says Zach DiFilippo, Realtor at Coldwell Banker in St. Augustine. “Buyers can actually do their homework before making an offer.”

Luxury properties — those priced over $650,000 — are still selling relatively quickly when well-priced and located in desirable areas. Homes under $350,000 are also moving faster due to greater affordability. The middle tier, however, is experiencing longer sales times, and sellers in this range are feeling increased pressure to adjust.

What Caused the Slowdown?

Three main factors have shifted St. Augustine’s market from a rapid-fire environment to a more measured pace.

First, mortgage rates have risen from historic lows near 3% to the mid-6% to mid-7 % range. This increase has reduced many buyers’ purchasing power. “If you can’t get a 2.75% rate anymore, your buying power shrinks,” DiFilippo explains. Buyers are now more selective and less willing to stretch their budgets.

Second, inventory has grown. The cooling of the Airbnb market has led to more homes for sale as short-term rental investors exit. Many who bought at peak prices are discovering that rental income no longer covers their costs. “You’re not seeing as many Airbnbs,” DiFilippo says. “The margins have shrunk to a point where it doesn’t make sense to buy a $1.1 million house that only brings in $80,000 a year.”

Third, buyer and seller motivation have changed. During the pandemic, many moved simply because remote work made it possible. Now, moves are driven by necessity — job changes, school needs, or family reasons. “You don’t just move across the county because you feel like it anymore,” DiFilippo notes.

How Quickly Are Homes Selling?

The market is no longer moving at record speed. Buyers are taking a week or more to make decisions, often requesting detailed information about property condition, systems, and homeowners’ association fees before committing.

“We’re back to that pre-COVID world where you can do a little pre-due diligence before going under contract,” DiFilippo says. Closing timelines have also lengthened, with many taking 45 days or more as lenders process loans and buyers complete thorough inspections.

For sellers, this means adjusting expectations. In a balanced market with four to six months of inventory, homes take longer to sell. Unless a property is perfectly priced and meets all buyer criteria, a two-week sale is no longer typical.

Advice for Buyers and Sellers

For Buyers:
Take advantage of the slower pace. There is no longer pressure to waive inspections or make immediate decisions. Review the home’s history, request repair documentation, and negotiate on price or repairs if needed. In the $350,000 to $650,000 range, buyers now have more leverage than they did recently.

If affordability is your main concern, consider homes under $350,000, where competition is less intense, and properties tend to sell faster. Also, explore local lending programs — perfect credit and large down payments are not always required.

For Sellers:
Price your home competitively from the outset. Overpricing can lead to longer market times, which can prompt buyers to question the property’s value. Focus on current active listings in your neighborhood rather than sales from six months ago.

Be prepared to negotiate. Today’s buyers expect reasonable concessions on repairs, closing costs, or timing. “Unless it’s some absolute gold mine, it’s going to take more than 30 days to sell,” DiFilippo says.

Presentation is key. With more inventory available, staging your home and ensuring it is ready for showings are essential. Buyers have choices, so a well-presented property stands out.

The Takeaway

St. Augustine’s housing market has shifted from a seller-dominated environment to a more balanced landscape. Buyers now have more time and negotiating power, while sellers must be realistic about pricing and flexible during negotiations to close deals. The rapid pace and intense competition of the COVID-era market were exceptions, not the standard. “A normal market takes time,” DiFilippo says. “Don’t expect what happened in 2021 to happen again.”

About the Expert: Realtor, Coldwell Banker, St. Augustine. Specializing in coastal properties, first-time buyers, and residential sales in Northeast Florida.

This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.