Florida housing market stabilizes, but sellers face pricing realities

Florida’s housing market shows stabilization as even small interest-rate changes support demand. Single-family homes averaged 44 days on market in April, while condos and townhouses averaged about 60 days, with condo times influenced by new regulations after the 2021 Surfside collapse. Condo sales have increased year over year for eight consecutive months, and condo supply is around nine months, indicating buyer-market conditions. Inventory growth has flattened and in some areas declined, though price weakness and inventory growth are concentrated in parts of southwest and central Florida. Pending sales rose 9.8% year over year, while 7% of properties were relisted after delisting, suggesting sellers are re-entering the market rather than being forced to sell.

"Even a half a point of interest rate [change] has been good for us, and just that much has allowed our market to stabilize and there's been some growth there. O'Connor said Florida Realtors measured the time on market for single-family homes that closed in April at 44 days. It's elevated compared to that pre-pandemic period, but it's not out of the sphere, he said. Condos and townhouses are around 60 days right now, and they've been as high as the mid-70s for us in recent months."

"Longer times on market for condominiums partially stem from new regulations that followed the 2021 Surfside condominium collapse. Despite these changes, condo sales have risen year over year for eight consecutive months, O'Connor said. Condos, he said, sit at roughly nine months of supply, tilting into buyer's market territory. The story about Florida last year and the year before was how fast our inventory was increasing, especially since sales were falling during that period, O'Connor said."

"What we've seen over the last eight months is the inventory has really flattened out and in some areas it's declining. This is where it really depends where in Florida you're looking. Parts of our state that have built a lot of single-family homes southwest Florida and parts of central Florida have seen the biggest price weakness and largest inventory growth. Other parts that are building constrained, like South Florida, have maintained their prices fairly well."

"HousingWire Data shows that statewide pending sales for the most recent week totaled 6,208 a 9.8% increase over the same time last year. This suggests buyer demand is slowly returning despite a higher-rate environment. But 7% of properties have been relisted after being previously removed. O'Connor said that figure actually feels low, given the number of sellers who delisted last year. No one's being forced to sell right now, he said."

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