Market Update – February 2026

Today's Market Looks Familiar

Jim Allison, Dunes Realty

Boy, things have a way of repeating themselves, don't they?

Hi, I'm Jim Allison with Dunes Realty.

Back in 2002, 2003, 2004, and 2005, our real estate market was absolutely bananas.

At the time, lenders were offering signature-only loans and adjustable-rate mortgages. An adjustable-rate mortgage can be a good product, but back then borrowers often didn't have to verify much of anything. You could simply sign the paperwork and move forward.

By the end of 2005, lenders had become much more cautious. The lending practices that fueled the market disappeared, many bad actors left the industry, and some even ended up in jail.

Then the market collapsed.

As prices began to fall, we went through a plateau period. Sellers wanted what their neighbors had received the year before, but the market had changed. Buyers weren't willing to pay yesterday's prices. Their priorities had shifted toward making mortgage payments, keeping their kids in school, and simply getting through uncertain times.

Now let's fast-forward.

When the pandemic changed everything, the market took off. Throughout 2021, 2022, and into 2023, demand surged and prices climbed rapidly. We reached the peak in 2023.

Since then, prices have come down by roughly 10 percent.

Even with that adjustment, we're still well above where values were before the pandemic.

Today, many buyers are hoping to find foreclosure deals, but those opportunities simply aren't there. Most homeowners have built significant equity, whether by paying down their mortgage, purchasing with cash, or putting down substantial down payments.

In other words, most sellers aren't under financial pressure.

What we're seeing now is very similar to what we've seen before.

Sellers still want the prices their neighbors received a year or two ago, while buyers are looking for a better deal. That's simply human nature.

The condominium market is beginning to stabilize. Prices have adjusted, and many sellers have renovated their units, giving buyers more value for their money.

The single-family home market is a little different, especially for vacation rental properties. Inventory remains tight, and we're still seeing that gap between seller expectations and buyer expectations.

The good news is the market is beginning to adjust.

I like to say we're starting to "sober up," and that's exactly what's happening.

If you're thinking about selling, remember that your equity has grown substantially over the past five years.

If you have questions about today's market or what your property may be worth, feel free to give me a call, send me a text, or email me.

I'm Jim Allison with Dunes Realty. Have a great day.