What Buyers & Sellers Need to Know Right Now

The Florida real estate market is moving through one of its most noticeable shifts in recent years. After multiple boom cycles fueled by strong migration, low inventory, and soaring demand, 2025 is shaping up to be a year where the market finally balances out. Inventory levels are increasing, homes are remaining on the market for longer periods of time, and buyers have more negotiating power than they have in a number of years. At the same time, prices remain relatively strong in many regions, supported by ongoing population growth and lifestyle-driven demand.

Here’s an in-depth look at what’s happening across Florida’s housing market this month — and what it means for buyers, sellers, and investors.

📊 Current Market Snapshot

1. Inventory Levels Are Climbing

When compared to the prior year, Florida’s active housing inventory has grown dramatically. Months-of-supply figures are increasing in many counties, which is a crucial sign of changing market conditions.

• Instead of the extreme seller’s market observed during the pandemic years, statewide inventory is hovering over three months’ supply, leaning closer to a balanced market.

• Buyers now have more options and leverage, as evidenced by the even higher levels in places like Lee County and Collier County, which are frequently between 7 and 8 months of supply.

Rising inventory doesn’t necessarily mean falling prices overnight, but it does signal a cooling market where sellers must adjust expectations.

2. Homes Are Staying on the Market Longer

One of the clearest signs of a market shift is days on market (DOM).

• Florida’s average days on market is currently approaching 100 days, which is significantly longer than the national average.

• Homes in some upscale or luxurious areas, like Naples, sit for four months or longer before being put under contract.

This slowdown is not due to lack of demand but rather a combination of higher pricing, buyer caution, and increased inventory giving shoppers more time to explore options.

3. Price Adjustments Are Becoming Common

In Florida, between 40% and 45% of active listings have had at least one price reduction. Compared to the fierce bidding wars of 2021–2023, when properties frequently sold for more than list price, this represents a change.

However, it’s important to note:

• Depending on the area, the median list price in Florida is still in the mid-$400,000s to $500,000 range.

• Price reductions indicate that sellers are becoming more realistic, but they do not always indicate a price crash.

Due to increased supply levels, the condo and townhouse market in particular is under more downward pressure; some areas have eight to ten months’ worth of inventory, indicating a true buyer’s market.

4. Sales Activity Remains Steady

Sales figures are still comparatively strong despite increased inventory and longer selling times.

• Recent months have seen year-over-year increases in the number of closed sales, especially for single-family homes.

• Remote workers, retirees, and buyers of second homes are among the out-of-state buyers that Florida continues to draw.

• In markets with high rental demand, investor activity has somewhat decreased but is still active.

Steady sales paired with slower price growth suggest a natural balancing rather than a downturn.

5. Regional Differences Are Pronounced

Due to Florida’s size and diversity, no two markets exhibit precisely the same behavior.

Here’s a quick breakdown:

• Naples and Southwest Florida: Increased inventory, slower sales, and higher prices, particularly in the luxury markets.

• Miami and South Florida: Higher price points, moderate inventory increases, and strong demand from foreign buyers.

• Orlando & Tampa: Steady demand, healthy new construction activity, and balanced pricing trends.

• Jacksonville and the Panhandle: Growing inventory that is still reasonably priced in comparison to South Florida, drawing investors and first-time buyers.

Different regions require different strategies for both buying and selling.

🧭 What’s Driving These Market Changes?

Mortgage Rate Influence

Even though interest rates are lower in 2025 than they were in 2023 and 2024, they are still high enough to affect affordability. Buyers are more picky and cautious, and many are holding off on making offers until there are favorable rate drops.

Insurance Costs

Insurance is still a significant consideration in Florida real estate. Higher premiums in coastal and storm-prone areas affect monthly payments significantly, influencing buyer decisions and slowing demand in certain segments.

More Realistic Seller Expectations

Sellers are now adjusting to a market where buyers demand concessions, inspections, and negotiations, particularly those who listed at peak-pandemic pricing.

New Construction Growth

Florida remains a hub for new developments, and an increase in new construction is helping boost overall inventory. Many builders are also offering buyer incentives, attracting those seeking move-in-ready homes.

🛒 What This Means for Buyers

More Options, Less Pressure

Buyers no longer need to rush or forgo contingencies in order to compete as inventory levels rise. Now there is:

• More negotiation power

• More room for inspection requests

• Better opportunities for price concessions

Potential Bargains in Certain Segments

The best negotiation opportunities are frequently found in the luxury and condo/townhouse markets. Reductions in price are becoming more common for properties that have been sitting for more than 100 days.

Still a Good Time to Buy — with Strategy

Florida’s long-term demand is still high because of its amenities, climate, tax benefits, and population growth. Prudent shoppers can make solid long-term investments.

🏠 What This Means for Sellers

Pricing Correctly Is Crucial

Appropriately priced homes based on recent comparable sales continue to sell, frequently in a fair amount of time. However, overpriced homes are sitting there and will eventually need to be reduced.

Presentation Matters More Than Ever

With more competition, sellers benefit from:

• Staging

• High-quality photography

• Well-written listing descriptions

• Minor upgrades to improve appeal

Flexibility Wins Deals

Today’s buyers are drawn to sellers who are willing to negotiate, make repairs, or help with closing costs.

📉 Risks to Watch in 2025

While Florida’s market is not in danger of a crash, here are factors to monitor:

• Continued increases in insurance premiums

• Higher property taxes in appreciating areas

• Oversupply in certain condo markets

• Slower population growth than expected

• Interest rate fluctuations

🔮 Florida Real Estate Outlook for Early 2026

It is expected that the market will continue to move toward equilibrium. Due to the state’s robust long-term demand, widespread declines seem unlikely, though prices may slightly soften in some segments.

Expect:

• Steady but slower sales

• Continued price negotiations

• Rising inventory through winter

• A stronger spring 2026 sales season

Buyers will continue gaining leverage, while sellers who adapt quickly will still find success.

❓ Frequently Asked Questions

Q1: Is Florida currently a buyer’s or seller’s market?

A buyer’s market is currently emerging in many Florida regions, particularly in areas where inventory is increasing. Nonetheless, there is still a lot of demand for upscale and coastal locations.

Q2: Are Florida home prices dropping?

Prices are normalizing rather than plummeting. While many sellers are lowering their list prices in an effort to draw in buyers, the state’s median prices are still largely unchanged.

Q3: Is it a good time to buy a home in Florida?

Yes, particularly for purchasers seeking bargaining leverage. Compared to previous years, buyers have more control, sellers are more adaptable, and inventory is higher.

Q4: Should sellers wait to list?

Not always. Well-maintained, reasonably priced homes continue to sell. Strong presentation and reasonable pricing are crucial.

Q5: Why are insurance costs affecting the housing market?

Some buyers halt their search or look inland rather than coastal areas as a result of higher premiums, which raise monthly expenses and lower buyer affordability.

Q6: Which Florida regions are performing the strongest?

While parts of Southwest Florida and the condo market exhibit more softness, South Florida (Miami, Broward, Palm Beach) and some upscale coastal areas continue to be resilient.