So, you’re tossing around the idea of packing up your bags and moving to Florida.
If you’re thinking about moving to the home of Disney World, the Daytona 500 and a 200-foot alligator named Swampy (yep, that’s a real thing)— or if you already live there — you’re probably wondering about the Florida housing market. Well, you’re in luck! We dug into the latest news on the housing market in Florida to give you a heads-up on what to expect in the Sunshine State.
Ready to dive in? Let’s go!
What’s the Florida Housing Market Like?
Housing prices in Florida decreased across the board in 2024—though not by a whole lot.
Here’s a look at Florida’s numbers for single-family homes from Q4 2024 compared to Q4 2023:
Florida Housing Market | November 2024 | November 2023 | Percent Change |
Median Sale Price | $410,700 | $413,000 | -0.6% |
Inventory (Active Listings) | 100,788 | 79,399 | +26.9% |
Closed Sales | 17,095 | 17,722 | -3.5% |
Median Time to Sale | 90 days | 72 days | +25%1 |
Average Mortgage Rate (15-Year Fixed) | 6.03% | 6.77% | -7.01%2 |
How Does Florida Compare to the National Housing Market?
Now, let’s see how Florida’s real estate market compares to the U.S. as a whole. At the national level, the median home sale price is $420,400.4 As we saw earlier, Florida’s median sale price is a bit less expensive at $410,700—2.31% lower than the typical national price.
Florida Housing Market Predictions for 2025
We’ve looked at the numbers, so now let’s turn our attention to what some real estate gurus are predicting about Florida housing heading into 2025.
1. Inventory will continue increasing.
Let’s throw it back to high school economics for just a second. You may remember that when supply decreases and demand stays the same, prices go up. Well, that’s exactly what’s happened in the real estate market across the U.S. over the past few years.
Home prices have shot through the roof mostly because there just aren’t enough houses on the market. And while housing inventory is on the uptick across the country, the increase isn’t happening fast enough to lower prices in most places.
There’s at least one exception, though: Florida. Housing inventory in the Florida real estate market increased enough in 2024 to make prices fall, and that trend could continue into 2025. Just ask Brad O’Connor, the chief economist at Florida Realtors.
“It’s definitely been a sizable increase over the last couple of years in inventory, and that sets us apart from other states,” he said in a recent Wall Street Journal article. “We could see some price deterioration in some areas.”5
While a continued increase in inventory will make life more difficult for sellers, it’s a great development for buyers.
2. High insurance premiums will limit demand.
High house prices and interest rates aren’t the only things making homeownership in Florida expensive—the cost of homeowners insurance has also skyrocketed. In just the last five years, homeowners insurance premiums in Florida have increased as much as 400%.6
That’s crazy! And it’s making homeownership way too pricey for a lot of folks, especially in areas prone to hurricanes—one of the biggest reasons for the steep increase.
As a result, demand in the Florida housing market could decrease—which would lead to prices going down further. With the potential of rising inventory and declining demand, 2025 should be a great time to buy a house in Florida if you’re financially ready (more on that later).
3. Interest rates will remain steady.
After two straight years of going up significantly, mortgage interest rates finally began to fall at the end of 2023 and into 2024. To put some numbers to it, the typical rate for a 30-year fixed-rate mortgage peaked at 7.79% in October 2023 but hit a low point of 6.08% in September 2024.7
So, will rates continue falling in 2025? Maybe, but probably not by much. At least that’s what National Association of REALTORS® (NAR) chief economist Lawrence Yun believes. He projects that 30-year mortgage rates will stabilize around the 6% mark in 2025 and into 2026.8
What does that mean for you? Basically, there’s no point in waiting around for interest rates to go down. If you’re ready to buy, go ahead and get the ball rolling.
But here’s the deal: You shouldn’t let the housing market control your decision on whether to buy or sell right now. It’s important to understand real estate trends so you have some context, but you should base your decision on your individual situation.
Bottom Line
Do you have questions about what the spring market means for you? Connect with a real estate agent and talk about how to craft your plan this season.
For more from the Blume Group, check out our other blogs at Blog.
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Source: ramseysolutions.com
