Published October 4, 2026 in Market Update

More homes are going under contract even with rates above 7%

By Angela Gigi Urbanski

Real estate, Primary buy box - Palm Coast / Flagler Beach / Ormond Beach Area

Here is the one thing that matters most right now. Rates are above 7%, and buyers are still moving. Freddie Mac put the 30-year fixed rate at 7.28% on October 1, 2026. That is not a small number. But the Real Estate Data Aggregator counted the three months ending July 31, 2026, and pending sales rose 15.6% in ZIP 32137 and homes sold rose 15.8% in ZIP 32174 compared to the same months last year. Serious buyers did not disappear. They adjusted.

Realtor.com reported that mortgage rates topped 7% in September 2026 for the first time since January. Nationally, Realtor.com also noted price cuts hit 4-year highs. That is the backdrop. But this market's own numbers tell a different story than the national headlines.

What the numbers show across each ZIP code

These are the three months ending July 31, 2026. Every number below comes from the Real Estate Data Aggregator. One street can read very differently from the whole ZIP, so treat these as the starting point, not the final word.

Palm Coast (32137): the biggest pending sales jump

ZIP 32137 had the strongest pending sales growth in this market. The Real Estate Data Aggregator counted 489 pending sales in the three months ending July 31, 2026. That is up 15.6% from the same months in 2025. Homes sold rose 16.5% to 459 closed sales. The median sale price came in at $400,000, up 4.9% year over year. Inventory fell 15.5%, which means fewer choices for buyers. Months of supply dropped 1.8 months to 4.7. Nearly 22 in 100 homes went under contract within two weeks of listing, up 4.6 points from last year.

Ormond Beach (32174): the most homes sold

ZIP 32174 led the market in volume. The Real Estate Data Aggregator counted 374 homes sold in the three months ending July 31, 2026, up 15.8% from the same period in 2025. The median sale price rose 5.4% to $390,000. Pending sales reached 393, up 8.9%. Inventory dropped 7.9%. Homes here sold in a median of 70 days, the fastest of any ZIP in this group. Sellers averaged 97.5% of their list price, up 0.8 points. About 7 in 100 homes sold above list price, up 1.4 points.

Palm Coast (32164): steady sales, prices held nearly flat

ZIP 32164 is the most affordable ZIP in this group. The Real Estate Data Aggregator counted 419 homes sold in the three months ending July 31, 2026, up 4.2% from last year. The median sale price slipped just 0.6% to $343,000. That is a small dip, not a slide. Pending sales rose 3.4% to 453. Sellers averaged 98.2% of their list price, the highest sale-to-list ratio in this market. Days on market crept up 5 days to 81. Inventory fell 18.6%. About 21 in 100 homes went under contract within two weeks, up 5.7 points.

Flagler Beach (32136): highest price, faster contracts

ZIP 32136 carries the highest median price in this group. The Real Estate Data Aggregator counted a median sale price of $480,000 in the three months ending July 31, 2026, though that is down 2.2% from a year ago. Sales rose 15.3% to 83 homes. Pending sales climbed 14.9% to 100. Inventory fell sharply, down 26.9%. Months of supply dropped 2.9 months to 4.9. The share of homes that went under contract within two weeks jumped 7.2 points to 21%. Homes here took a median of 88 days to sell, 5 days less than last year.

Ormond-by-the-Sea (32176): prices up, fewer homes available

ZIP 32176 had the strongest price growth of any ZIP here. The Real Estate Data Aggregator counted a median sale price of $402,500, up 12.3% from the same period in 2025. That is a meaningful move. Homes sold fell 7% to 119, but pending sales still rose 5.8% to 147. Inventory dropped 20.1%. Months of supply fell 1.1 months to 6.9. About 26 in 100 homes went under contract within two weeks, up 7.2 points. Homes sold 9 days faster, with a median of 59 days on market.

How pending sales trended across the market

What this means if you are a seller

Inventory is falling in every ZIP with year-over-year data. Fewer homes for sale means your competition is shrinking. The Real Estate Data Aggregator showed inventory down anywhere from 7.9% in ZIP 32174 to 26.9% in ZIP 32136 compared to last year. Buyers are still out there. But price matters more than ever. Nationally, Realtor.com reported that price cuts hit 4-year highs as of September 2026. The homes that are selling here are priced right. The ones sitting are not.

What this means if you are a buyer

Freddie Mac put the 30-year fixed rate at 7.28% on October 1, 2026. That is real. But so is this: pending sales are rising, inventory is shrinking, and prices in most ZIPs here moved up year over year. The Federal Housing Finance Agency reported that U.S. house prices rose 2.6% from July 2025 to July 2026. Waiting for perfect conditions has a cost too. The question is not whether rates are ideal. The question is whether the home you want will still be available.

Before you fall in love with a home, get an insurance quote and check the flood zone for that specific address. This area's insurance costs vary by property, and relocation buyers often underestimate that line item. It can change what a home actually costs you each month.