THE TRUTH ABOUT BUYING A HOME IN 2025

We’re already halfway through 2025, and if you’ve been keeping an eye on the news, you’ve probably heard a lot of negative headlines about the Florida housing market. Rising inventory, slowing demand, and uncertainty seem to be the recurring themes. But let’s take a moment to step back and look at what’s actually happening—both here in Sarasota and Manatee counties and across the country.

If you’re thinking about buying, this may be one of the best windows of opportunity we’ve seen in years.

Let’s Talk Numbers

In the first half of 2025, Sarasota-Manatee sold 11,229 homes. That number is almost identical to the 11,239 homes sold in the first half of 2024—and not far off from the 11,300 homes sold during the same period in 2023.

So despite the noise, the truth is: people are still moving to Florida, and homes are still selling.

The big difference now is inventory. Over the past five years, inventory has steadily increased, which means we now have more options for the same level of demand. As of now, there are around 11,392 active listings—giving us roughly six months of inventory, which puts us in a balanced market.

And here’s something noteworthy: for the first time in a long time, inventory is no longer climbing—it’s starting to decline. We’re seeing more homes go under contract than new listings hitting the market. That trend is worth watching.

What’s Causing High Inventory?

A few factors are contributing to the high inventory we’ve seen in Florida:

• New construction boom: Builders have been busy over the past five years, and although they’ve slowed down recently, many spec homes are still competing with resales.

• Rising cost of ownership: It’s not just home prices that have gone up—insurance premiums and HOA fees have also risen, making monthly ownership more expensive overall.

But there’s some good news on the insurance front that doesn’t get talked about enough.

A Shift in Insurance Costs

One of the lesser-known reasons Florida’s insurance rates soared in the past was legal action. At one point, 79% of all insurance lawsuits in the U.S. originated in Florida, even though we only make up 9% of total policyholders. That imbalance drove up costs significantly.

In 2023, Florida passed new legislation aimed at curbing this trend. As a result, we saw a 10% drop in catastrophic reinsurance rates in January 2025. That’s a meaningful change. While you may not see your premiums fall drastically just yet, the rising trend has finally slowed—and that’s a move in the right direction.

Changing Demographics and Market Dynamics

Another factor impacting the market: a shift in who’s moving in—and who’s moving out.

Over the past few years, many people moved to Florida for the flexibility of remote work. But with more companies pulling workers back to the office, we’re seeing younger adults (especially those aged 20–35) relocate to other states for better job opportunities.

At the same time, older residents who waited out the pandemic in place—whether due to rising costs or limited options—are now finally making moves. All this change means more homes are hitting the market.

The Sweet Spot for Buyers

Here’s the key takeaway: if you live in a state like Michigan, Ohio, Massachusetts, Missouri, or New York, where homes are still selling fast and inventory is low, you may be in a rare position to sell high and buy low—right now—in Florida.

This moment won’t last forever. Inventory levels in other states are likely to follow Florida’s lead and start rising. And if mortgage rates drop in the next 12–24 months, like many predict, we’ll see a surge of buyers re-enter the market, which will shift the balance again.

So, is anyone still moving to Florida? Absolutely. We’re getting calls every day from people relocating, downsizing, or just looking for a change. And we love helping you find the right home here.

Final Thoughts

If you’ve been on the fence, this may truly be a once-in-a-lifetime opportunity. The chance to sell high in your market and buy well in ours doesn’t come around often.

If you’re ready to make a move—or just want to explore your options—we’re here for you. Reach out anytime. And remember, when it comes to real estate, it’s always best to work with an expert.