Florida’s housing market, once booming during the pandemic, is now shifting in favor of buyers. As the peak homebuying season begins, for-sale inventory in the state has surged to record highs, while home prices are starting to decline in many areas.
The Florida housing market is experiencing a transformation, driven by several factors. For-sale inventory levels are at unprecedented heights, with homes lingering on the market longer than before. As a result, home prices in numerous regions are beginning to drop. This change is partly due to a slowdown in migration to Florida, combined with worries about hurricanes, increasing insurance and tax costs, and a steady stream of new constructions. These elements are giving buyers more power in the market. Ben Grieco, a real estate agent in Port Charlotte, noted the increasing availability of homes, stating, ‘There’s just so much to choose from that it’s really pushing prices down.’
In January, the number of active homes for sale exceeded pre-pandemic levels, with over 168,000 homes listed, according to Realtor.com. Florida homes now average 75 days on the market, an increase of 13 days from the previous year, as reported by Redfin. Particularly rapid declines in single-family home prices are being observed along the southern Gulf Coast. Zillow data indicates that since January 2024, home prices in Punta Gorda have decreased by nearly 8%, with Cape Coral and North Port also experiencing significant drops.
Hurricane Ian’s legacy still resonates with buyers and sellers alike. The 2022 storm, the costliest in Florida’s history, has made buyers increasingly cautious about flooding history while pushing sellers to close deals before the next hurricane season. Rick Harrison, a real estate agent from Fort Myers, shared that ‘People are worried,’ reflecting the ongoing concerns over hurricane impacts.
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Despite falling prices, many potential buyers are finding it tough to secure homes due to high prices and mortgage rates above 6%. The median listing price stands at $435,000, having dropped since mid-2022, yet remaining 32% higher than in 2019. This has led to a surplus in available homes, shutting many out of the market. However, those who can afford to buy are leveraging their position, often having offers below the asking price accepted, and securing repairs and contingencies that had previously been waived.
New constructions offer further opportunities for deals, with developers eager to sell unsold homes. Incentives such as mortgage rate reductions, closing cost coverage, and upgrade credits are common. Rick Harrison advises buyers to consider these new builds, highlighting the enhanced building codes for hurricane protection. Buyers like Olivia Wadden, who recently purchased in Bradenton, benefit from these shifts, securing homes below the list price with ample incentives.
Though Florida remains a top relocation destination, its growth rate has slowed. Census data shows a net gain of 64,000 people moving to Florida last year, a decrease from previous years. While some areas, like Miami and Tallahassee, still see rising prices, the overall market is trending towards stabilization.
Florida’s housing market is undergoing a notable transition, marked by increased inventory and softening prices. While this presents challenges for some, it offers opportunities for savvy buyers ready to take advantage of favorable conditions. As new construction continues and market dynamics shift, both buyers and sellers must navigate the changing landscape with care.
