Are House Prices Going Down in Florida?

Many individuals considering a real estate transaction in Florida wonder if house prices are declining. Real estate markets are dynamic, influenced by interconnected factors that lead to constant shifts in property values. Understanding these forces and current trends helps in making informed decisions. This review of Florida’s housing market provides insights into its current state and the elements shaping its trajectory.

Current State of Florida’s Housing Market

Florida’s housing market has experienced a period of rebalancing, with recent data indicating an easing in median home prices across the state. In July 2025, the statewide median sales price for single-family existing homes was approximately $410,000, representing a 1.7% decrease compared to the previous year. For condo and townhouse units, the median price in July 2025 was $295,000, showing a 6.3% decline year-over-year.

This shift also reflects in increased available inventory. Single-family existing homes were at a 5.4-months’ supply in July 2025, while condo-townhouse properties had a 9.6-months’ supply during the same period. A market is balanced at around six months of supply, suggesting the condo market currently favors buyers. The time homes spend on the market has also lengthened; in January 2025, homes typically sold after 73 days, slower than the 59 days observed in January 2024.

Key Influencers of Florida Housing Values

Several factors influence Florida’s housing values. The interplay of supply and demand is a key driver, as increased housing inventory provides more options for buyers. This expanding supply, coupled with a moderate pace of sales, contributes to a less competitive environment.

Mortgage interest rates also play a key role in affordability and buyer activity. Elevated rates, fluctuating near 6.5% to 7% in recent periods, have increased borrowing costs for homebuyers, impacting their purchasing power. While higher rates can reduce demand, future rate reductions could stimulate buyer interest and exert upward pressure on prices.

Florida continues to experience significant population growth, attracting new residents with its favorable tax environment, job opportunities, and desirable climate. The state’s population grew by 1.6% annually, surpassing 23 million residents in 2024, consistently fueling housing demand. This influx of people creates a baseline demand that helps stabilize the market.

The rising cost of property insurance has emerged as a significant financial burden for homeowners and a deterrent for potential buyers. Florida homeowners face some of the highest insurance premiums in the country, with average annual costs around $4,231, and some areas seeing rates exceeding $8,770. These escalating expenses, driven by natural disaster risks, litigation, and a shrinking pool of insurers, affect homeownership affordability and influence property values. The state’s economic health, characterized by a low unemployment rate of 2.8% in early 2024, supports consumer confidence and the housing market.

Geographic Differences in Florida’s Market

Florida’s real estate landscape is not uniform, with significant variations in market conditions across its diverse regions. Coastal areas, particularly those with many condominium units, have experienced challenges. These markets have seen increased inventory and price declines for condos, with some areas observing drops of approximately 12% from their 2022 peak. This trend is attributed to rising ownership costs, including insurance and regulatory requirements.

In contrast, the market for single-family homes in many inland areas has demonstrated more stability. A shift in buyer preferences has emerged, with some individuals moving from more expensive southern regions, such as Miami and Broward County, to northern areas like Port St. Lucie for more affordable housing. This internal migration supports demand and prices in these growing northern and inland communities, while southern markets may experience a slowdown in sales and price appreciation.

Important Market Data Points for Consideration

Understanding specific real estate metrics helps individuals analyze market conditions. The median sale price represents the middle value of all homes sold in a given period, meaning half sold for more and half for less. This statistic provides a more accurate picture of typical home values than an average price, which can be skewed by a few extremely high or low sales.

Inventory levels, often expressed as “months of supply,” indicate how long it would take for all currently listed homes to sell if no new properties came onto the market. A balanced market has four to six months of supply; a lower figure suggests a seller’s market with higher demand, while a higher figure indicates a buyer’s market with more available homes.

Days on Market (DOM) measures the number of days a property remains on the market from its listing date until a sale contract is accepted. A shorter DOM signals strong buyer demand and a competitive market, where homes sell quickly. Conversely, a longer DOM can suggest reduced demand or that a property may be overpriced, potentially offering buyers more negotiation leverage.

The sale-to-list price ratio compares a home’s final sale price to its last asking price, expressed as a percentage. A ratio above 100% indicates homes are selling for more than their listed price, common in competitive seller’s markets. A ratio below 100% suggests homes are selling for less than asking, indicating a buyer’s market where negotiation is more common. Tracking these data points helps assess the current state and direction of a local housing market.