Real Estate outlook for 2026 in Martin County

In early 2026, the Martin County real estate market is undergoing a “healthy rebalancing.” After several years of skyrocketing prices and tight inventory, the market has shifted toward a more predictable, buyer-friendly environment, though affordability remains a hurdle.

Here is what you can expect in Martin County for 2026:

### **1. Real Estate Market Trends**

The market is currently characterized by a “pricing realignment.” While demand remains high due to Florida’s population growth, the frantic bidding wars of the past have largely subsided.

* **Price Adjustments:** As of early 2026, median sales prices in Martin County have seen a significant year-over-year dip (reported as much as **18% down** in some segments like Stuart). This isn’t a “crash” but rather a correction from 2024–2025 peaks.
* **Inventory & Sales:** Inventory is up (around **5.4 months of supply**), which officially moves the market into “balanced” territory. Interestingly, sales volume is surging (up nearly **30%**), meaning buyers are jumping back in now that prices have moderated.
* **Days on Market:** Expect homes to sit for about **50 to 90 days**. Sellers can no longer expect an overnight sale and must be strategic with their starting price.

### **2. Mortgage Interest Rates**

The Federal Reserve’s rate cuts throughout 2025 have finally filtered down to the consumer level, though “ultra-low” rates are likely a thing of the past.

* **The 6% Floor:** Most major forecasters (Fannie Mae, MBA) see 30-year fixed rates hovering between **5.75% and 6.4%** for the duration of 2026.
* **Refinancing Boom:** With rates down from the 7%+ peaks of 2024/early 2025, a significant portion of the market is expected to focus on refinancing existing high-rate loans.
* **The “Lock-in” Effect:** While rates are lower, many homeowners with 3% mortgages from the pandemic era are still hesitant to sell, which keeps the supply of existing homes from flooding the market.

### **3. Homeowners Insurance**

There is finally some light at the end of the tunnel for Florida’s insurance crisis, thanks to legislative reforms and a “stable” 2025 hurricane season.

* **Rate Stabilization:** For the first time in years, private insurers are filing for rate **decreases** or 0% increases.
* **Citizens Reductions:** Citizens Property Insurance (the state-backed insurer) has announced an average premium reduction of roughly **8.7%** starting in Spring 2026.
* **Roof Rules:** New laws (HB 815) effective mid-2026 prohibit insurers from denying coverage solely based on roof age if the roof is in good condition. This should make it easier to insure older homes in areas like Stuart and Jensen Beach without a mandatory $20k–$30k roof replacement.

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### **Summary Table: Martin County 2026 Outlook**

| Factor | Trend | Expectation |
| — | — | — |
| **Home Prices** | 📉 Correcting | Median prices stabilizing; more room for negotiation. |
| **Interest Rates** | ↔️ Stable | Hovering near 6%; slight improvements in affordability. |
| **Insurance** | 📉 Improving | Rates flattening or slightly dipping; more private carriers. |
| **Competition** | 🤝 Balanced | Fewer bidding wars; more “contingent” offers accepted. |

### **A Tip for 2026**

If you are a buyer, this “window of leverage” may be temporary. As interest rates settle and insurance costs stabilize, many “sidelined” buyers are expected to return, which could drive prices back up by late 2026.