Why “Waiting for Rates to Drop” Could Cost You Thousands in Brevard County (2026 Market Update)
If I had a dollar for every time a client told me, “Lizzie, we love the house, but we’re going to wait for interest rates to go back down to 3%,” I wouldn’t need to sell real estate. I’d be retired on a yacht in the Indian River.
I get it. The housing market of the last few years has been a rollercoaster. If you are a millennial in your 30s, you’ve watched home prices skyrocket, then watched interest rates climb, and it feels like the goalposts keep moving. It is frustrating. It feels unfair.
But as a Realtor living and working right here in Brevard County, I need to have a serious conversation with you about the “Waiting Game.”
Many buyers think they are being smart by sitting on the sidelines. They think they are outsmarting the market. But the data we are seeing in Melbourne, Viera, and Palm Bay for 2026 suggests that waiting might actually be the most expensive decision you can make.
Here is the reality of the Space Coast market right now, and why the window of opportunity might be closing faster than you think.
The Myth of the “Crash”
Let’s rip the band-aid off: Brevard County is not going to crash.
I know, I know. You saw a YouTube video saying the sky is falling. But real estate is hyper-local. You cannot compare our market to San Francisco or Austin. We have something they don’t: The Space Industry.
With SpaceX, Blue Origin, L3Harris, and Northrop Grumman continuing to expand, we have a constant influx of high-earning engineers and professionals moving to the coast. These people need homes. As long as jobs are growing here, home prices will have a “floor.”
In 2026, we are seeing what we call a “Balanced Market.” Inventory is up slightly, which means you actually have choices (unlike 2022 where you had 15 minutes to make an offer). But prices aren’t plummeting. They are stabilizing.
The “Marry the House, Date the Rate” Strategy
You have heard this phrase before, but let me explain the math behind it.
Let’s say you find a home in West Melbourne for $400,000. The interest rate is higher than you’d like. Maybe it’s 6.5%. Your monthly payment feels steep.
Now, let’s say you decide to wait. You say, “I’ll buy when rates hit 5%.”
Here is what happens when rates hit 5%: Everyone else gets off the sidelines.
There is a massive amount of “pent-up demand.” There are thousands of buyers just like you, sitting in apartments, waiting for that rate drop. The second the Fed signals a cut, those buyers flood the market. Suddenly, that $400,000 house has 10 offers. It sells for $450,000. You are now in a bidding war, waiving inspections, and begging the seller to pick you.
By waiting for a lower rate, you might save $200 a month in interest, but you overpay $50,000 for the asset. That math doesn’t help you.
Why Brevard is Unique (The “Viera Effect”)
We are seeing distinct micro-markets here. Areas like Viera are continuing to appreciate because of the “lifestyle” factor—golf carts, A-rated schools, and new shopping centers. It’s becoming a self-contained bubble of demand.
Meanwhile, Palm Bay is offering incredible value for first-time buyers. You can still get a new construction home for a price that would be laughable in Orlando or Miami. But even there, builders are starting to slow down incentives as they run out of inventory.
The “Opportunity Cost” of Renting
While you are waiting for the perfect market conditions, you are paying your landlord’s mortgage. In Brevard, rents have increased significantly. If you are paying $2,200 a month for a decent apartment in Suntree, that is $26,400 a year that is 100% gone. You never see it again.
If you bought a home, even at a higher rate, a portion of that payment is going toward principal. You are also getting the tax benefits of homeownership. And most importantly, you are locking in your housing cost. Rents go up every year. A 30-year fixed mortgage does not.
My Advice to My Friends
When my friends ask me what to do, I tell them this: Don’t try to time the market. Time in the market is what builds wealth.
If you plan to stay in Brevard for 5-7 years (the “5-Year Home” concept I wrote about previously), then buy when you can afford the payment. Don’t worry about the rate. You can refinance the rate later. You cannot renegotiate the purchase price 5 years from now when the house is worth 20% more.
We are living in one of the most exciting regions in the country. The rockets launching from the Cape aren’t just cool to watch; they are the engine of our local economy. Betting against Brevard real estate right now is betting against the future of space exploration.
I wouldn’t take that bet.
Are you looking for a home in Melbourne, Viera, or the Beaches? Let’s grab coffee and run the numbers for your specific situation. No pressure, just strategy. Contact me today.