Florida’s red-hot pandemic housing market is finally showing signs of slowing down. A dramatic rise in available homes, longer selling times, and price drops across key regions indicate a shift that favors buyers for the first time in years.

The inventory of homes for sale has reached historic highs, with more than 168,000 active listings across the state as of last month, according to Realtor.com. Properties are lingering on the market longer, spending an average of 75 days before finding a buyer—13 days longer than a year ago, Redfin data reveals.

The slowdown is particularly noticeable along Florida’s southwest Gulf Coast, where a mix of economic factors and natural disaster concerns have cooled demand.

Why Florida’s Housing Market Is Softening

Several factors are contributing to Florida’s shifting real estate landscape:

✅ Slowing Migration: Florida’s population surge during the pandemic has begun to stabilize, reducing the frenzied demand that once pushed prices sky-high.

✅ Skyrocketing Insurance Costs: Home insurance premiums in Florida have surged nearly 40% year-over-year, making homeownership increasingly expensive. Some residents are paying over $6,000 annually for insurance—more than double the national average.

✅ New Condo Regulations: The aftermath of the 2021 Surfside condo collapse led to strict building laws, increasing costs for condo owners and scaring off potential buyers.

✅ Hurricane Worries: The devastation left by Hurricane Ian in 2022, the costliest storm in Florida’s history, remains fresh in buyers’ minds. Many now hesitate to purchase properties in high-risk flood zones.

✅ Rising Mortgage Rates: With 30-year fixed mortgage rates hovering above 6%, affordability is a major hurdle, even as prices decline.

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Where Prices Are Dropping the Most

While Florida’s housing market is cooling across the board, certain areas are seeing faster declines in home prices:

📉 Punta Gorda: Home prices have fallen nearly 8% since early 2024, making it one of the steepest declines in the state (Zillow).

📉 Cape Coral: Located just 30 miles south, this once-booming city has seen prices drop by 5.6% year-over-year.

📉 Naples & North Port: Known for luxury golf communities, both areas have experienced over a 3% price decline in the last year.

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Buyers Finally Gaining an Edge

For years, Florida’s real estate market heavily favored sellers. But now, with rising inventory and falling prices, buyers are regaining leverage.

✅ More Choices: With supply at record highs, buyers can be pickier, negotiate better deals, and avoid bidding wars that were common during the peak pandemic frenzy.

✅ Sellers Under Pressure: Many homeowners are eager to sell before hurricane season starts in June, and with prices cooling, they’re more open to price reductions and incentives like covering closing costs.

✅ New Construction Boom: Builders are adding more homes than ever, contributing to the rising supply. In some areas, new construction homes now compete directly with existing homes, further pressuring sellers to lower prices.

Affordability Still a Challenge

Despite softening prices, home affordability remains an issue. The median listing price in Florida is still $435,000—down from the peak in mid-2022 but 32% higher than 2019 levels. When combined with today’s mortgage rates, many buyers are still priced out, leading to a growing inventory glut.

Experts predict the market will continue adjusting throughout 2025, with further price declines possible in overbuilt areas. For now, buyers willing to wait and negotiate could finally have the upper hand in Florida’s cooling housing market.

Bottom Line: After years of record-breaking growth, Florida’s real estate market is shifting. While sellers still hold some power in premium areas, buyers are gaining control in many parts of the state—especially in hurricane-prone and overbuilt regions. Those looking to buy should watch interest rates closely, negotiate aggressively, and consider long-term costs like insurance before making a move.

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