Home sellers in Florida are facing stiffer competition as the number of listings in the state soars because of a mix of new construction, rising property insurance costs and a condo building safety law that has led to sharp fee increases, industry observers say.
The Sunshine State had a total of 254,410 active single-family, townhouse and condo listings in February, up 5% from January and 25% from the same month in 2024, according to Homes.com data.
Across the state, new listings are coming at roughly the same rate as in previous years, but the sales pace is slower, said Brad O'Connor, chief economist for Florida Realtors, an Orlando-based trade group. That could portend a sluggish spring selling season. It's already resulting in lower prices, particularly for condos.
On an annual basis, the statewide median sales price for condos dropped 3.1% to $315,000 in February and has declined in eight consecutive months, according to Florida Realtors. The $415,000 median price for single-family homes was flat in February and has cooled over the past year.
"If you're serious about offloading your property, you're probably going to have to make some concessions in terms of price," O'Connor said in an interview.
Home listings are also on the rise in Texas and across the country as more owners locked into historically low mortgage rates decide to sell as they move for new jobs and other life events. But there are other factors at play in Florida.
Builders compete for buyers
Listings appear elevated in southwest Florida, along the Interstate 4 corridor and north of Orlando in The Villages retirement development, areas that have experienced waves of homebuilding in recent years, O'Connor said. Sellers of existing homes are competing for buyers with homebuilders, who can offer incentives such as mortgage-rate buydowns to lower monthly payments.
In a conference call to discuss first-quarter earnings, Miami-based homebuilding giant Lennar cited the increase in listings and fewer people moving to Florida and Texas as reasons why it increased incentives in those states.
Cameron Haley and his wife, Nalini Ramer, plan to move to Minneapolis to be near family, so they listed their two-bedroom home in the South Middle River neighborhood of Fort Lauderdale for $475,000 in December.
Haley, a 35-year-old air traffic controller, said in an interview they built a cedar privacy fence and a covered patio, among other improvements. They believe those upgrades helped their house stand out from the competition in a buyer's market.
An out-of-state buyer made an offer but bailed after finding out how much the insurance would cost, according to Haley. Another offer fell through, but they have accepted a third. The sale is expected to close later this month.
It was on the market for 76 days, and the couple lowered their asking price twice.
"It surprised us that the market was a little bit slower than we expected," Haley said.
Insurance concerns weigh on market
The cost of property insurance is a common and growing concern.
Windstorm insurance in hurricane-prone Florida has typically cost more than most states, but some Sunshine State homeowners have had their rates more than double in recent years. That has priced some people out of the market and contributed to the state's ongoing housing affordability challenge, industry watchers said.
Florida property insurance regulators say in recent months, they have approved about a dozen new companies to offer residential coverage. What's more, lawmakers cite legislative changes they say are helping reduce claims fraud and keep costs down. Still, some critics are unconvinced.
"Insurance is out of control," said broker Gary Lanham of Coldwell Banker Realty in Fort Lauderdale.
Also contributing to the increase in home listings, industry experts say, is a new state law that requires aging condo buildings at least three stories tall to conduct safety inspections and fund necessary repairs. Lawmakers acted in response to the 2021 collapse of the 12-story Champlain Towers South in Surfside, north of Miami.
To increase reserves that will help pay for needed repairs, some condo boards are boosting their operating budgets and levying special assessments, moves that are leading to much higher monthly or quarterly dues for unit owners. Many owners are selling because they can't afford to stay and pay.
"There are so many headwinds for the condo market in Florida right now," said Peter Zalewski, a South Florida real estate broker and consultant, in an interview.
Florida Realtors started tracking inventory levels in 2008, during the middle of a housing bust and the global financial crisis. In February of that year, there were more than 375,000 active listings, a number that hasn't been topped since, O'Connor, the chief economist, said.
While the number of listings currently is elevated, he said it's not a major concern, at least for now.
"I don't have a red warning light flashing at this time," O'Connor said, "but if it continues at this rate for two or three more years, we'd really be in bad shape."
