What’s Really Happening in the Florida Housing Market?

What’s Really Happening in the Florida Housing Market?

If you ask builders, agents, or anyone active in Florida real estate, most will say the market is slower than it was in 2022 and 2023. And yes, activity has slowed, but homes are still selling. In January 2025 alone, 1,397 homes closed, which is actually higher than in the past two years. So, while the market may feel sluggish, more homes are selling than people realize.

What’s different? Inventory levels are at their highest in over a decade. Right now, there are more than 11,000 homes for sale in Florida. It’s common for inventory to rise in January and February before tapering off later in the year. The next six months will be crucial in determining how the rest of 2025 plays out.

Is the Market Crashing?

The short answer? No, not yet. However, home values are still declining. If you watched my previous video about a 10% drop in 2024, you know I predicted another 5% to 10% decrease in 2025, and I still stand by that.

How Long Does It Take to Sell a Home Right Now?

With so many homes on the market, it’s taking longer to sell. On average, homes are taking 80 days from listing to closing. But sellers should be prepared for it to take 90 to 150 days before they’re officially moving out. If you’re relocating soon, it’s essential to start planning now.

People often ask, “When is the best time to buy or sell?” The truth is, it depends on your personal situation. Whether you’re getting married, having a baby, retiring, or moving for work, your timing matters more than the market. Real estate isn’t just about numbers—it’s about life changes.

Are People Leaving Florida?

Florida saw a massive influx of new residents during the pandemic, but we’re now seeing a shift. Some of those who moved here are leaving, along with long-time residents who have decided Florida is no longer for them. The biggest group leaving? People aged 20 to 29. Many came for remote jobs or fresh starts, but as circumstances change—especially with rising living costs—some are moving elsewhere.

However, don’t panic—Florida is still growing. Second-home buyers, empty nesters, and retirees continue to move here, keeping the real estate market active.

What Buyers & Sellers Need to Know

For Buyers:

• With more inventory available, you have more choices—but that doesn’t mean you can afford to wait too long.

• Homes are selling for about 5% below the list price, on average. The longer a home sits, the more room there might be for negotiation.

• Great homes in desirable neighborhoods still sell quickly. If you find a home that checks all your boxes, don’t hesitate too long!

For Sellers:

• Be realistic about pricing. If your neighbor sold their home for 10% more last year, that doesn’t mean you’ll get the same price today.

• Competing with new construction is tough. Builders can offer incentives and adjust pricing in ways that individual sellers can’t. If builders drop their prices, resale homes have to adjust, too.

• Price drops are happening. If you’re selling, be prepared to make adjustments to stay competitive.

What About New Construction?

Builders currently have more inventory than they’ve had in the last decade. Many are offering quick move-in homes and are willing to negotiate on price and incentives. If you’re considering new construction, now is a great time to explore your options. I can provide insight into which builders are offering the best deals.

Final Thoughts: What’s Next for 2025?

We’ll likely continue to see price drops throughout 2025, but January’s strong sales numbers suggest that the market is still moving. February and March will give us an even better idea of what’s to come.

So, is the Florida housing market crashing? No. But is it shifting? Absolutely.

The best time to buy or sell is when it makes the most sense for you. If you’re thinking about making a move, let’s talk about your options. My team and I at Sarasota Neighborhood Experts are here to help. Reach out anytime, and let’s find the right strategy for you.

📍 Thinking of relocating to the Florida Gulf Coast? Download my free relocation guide for everything you need to know about life in Sarasota and Manatee County.

📞 Need real estate advice? Contact me today!