Florida’s Housing Market Is Cooling – What Buyers and Sellers Need to Know

Florida's real estate market—once red-hot—is finally showing signs of cooling. Inventory is at record highs, homes are sitting longer, and prices are beginning to dip across several regions, particularly along the southwest Gulf Coast. For both buyers and sellers, this shift brings a new set of opportunities and challenges.

1. Inventory Soars, Prices Dip

As of early 2025, for-sale listings in Florida surpassed pre-pandemic levels, with over 168,000 homes on the market. Homes are now spending an average of 75 days listed—13 more than a year ago. Cities like Punta Gorda and Cape Coral have seen price drops of 8% and 5.6% respectively, while Naples and North Port recorded declines above 3%.

2. Why the Slowdown?

Several factors are contributing to the market shift:

• Insurance and tax hikes are making ownership more expensive.

• Hurricane anxiety persists, especially after Hurricane Ian’s 2022 devastation.

• A surplus of new construction is giving buyers more choices and negotiation power.

• Migration to Florida is slowing down, with net in-migration falling to 64,000 in 2024—down sharply from 300,000 in 2022.

3. Buyer Leverage Is Back

The tables have turned. Many sellers are now accepting offers $20,000 below asking and are more willing to make repairs and accept contingency clauses. Builders, sitting on unsold inventory, are offering mortgage rate buydowns, closing cost assistance, and upgrades.

4. Affordability Remains a Challenge

Even with price drops, the median listing price sits at $435,000—still 32% higher than in 2019. Coupled with mortgage rates north of 6%, affordability is a hurdle for many, especially first-time buyers.

5. Areas Bucking the Trend

Not every city is feeling the pinch. Metro areas like Miami, Tallahassee, and Gainesville have seen price increases, with statewide home prices still averaging about 1% above last year.

6. What It Means for Sellers and Buyers

• Sellers: If you're thinking of listing, be realistic about pricing. Highlight hurricane protection features and be ready to negotiate.

• Buyers: Now is your chance to explore more options, negotiate terms, and tap into builder incentives—especially for new construction.

As one of our buyers put it after scoring a below-list-price deal with mortgage perks in Bradenton, "Obviously, the market has been so crazy high, but lately it’s been dropping… we finally found the one that fit our family."