Florida may still be basking in the sun, but the once faint housing market has faded.
The momentum of cheering for a quick turn during the pandemic. For the first time in years, buyers have regained leverage.
Sellers are squeezed by surge in insurance premiums, softening demand and growing inventory, are lowering prices, paying for closure costs and mitigating surprises to reach the deal.
But is this a buyer's paradise? According to real estate experts, the story of Florida housing is more complicated than just buyer-friendly.
In the Covid-19 era, a wave of remote workers seeking sun transplants and loose restrictions have made Florida the ground for ground zero real estate. Builders compete to meet demand. Demand has cooled now.
Then there were two hurricanes, a spiral of insurance crisis and record-breaking home ownership costs. The panic-induced headlines are comparing to the 2008 crash, but experts urge caution before alerting.
"It's still far away," real estate expert Vincent Arcuri said recently. Florida Circle. "The interest rate is 6.5%, if you see the interest rate in the 5s anywhere in the 5s, you'll see the market change overnight and real estate will soar again, so that has a lot to do with how much I put in and how much I pay, which is how much I pay? That's the economy that really drives people to buy the economics of homes."
Some homeowners who buy on the top of the hill may feel pinched.
"You have people from the pandemic, and it's time to pay the violinist," Akuri said. "I think those who come in and pay $50,000, over $100,000 in the market, they're now worth less and they're paying a lot when they buy it, which offsets some of the equity in these homes."
So is local or regional? According to Arcuri, Florida's housing market is not uniform.
Inventory is rising in parts of Florida such as Tampa Bay, St. Petersburg and Clearwater, but most of that is due to apartments rather than single-family homes. The surge is driven by regional specific factors: new milestone check rules, soaring HOA fees and soaring insurance premiums – all of which are delaying apartment sales.
While title numbers may indicate a slowdown in the market, many statistics are tilted by the flood of apartment lists. This situation is more regional than the statewide one.
Recent hurricanes have only increased pressure, especially for older and coastal apartment communities, while inland areas and single-family markets remain more resilient.
So, when will the market rebound? This depends largely on policy. As Arcuri said, “Until we had a major insurance reform.”
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As homes spend more time on the market (especially in Tampa Bay and South Florida), buyers have seen the return of allowances that have not seen since the pandemic.
But that doesn't mean it's easy for today's buyers. While housing prices may be stable, the hidden cost loom is almost the same:
Florida now has the highest average home insurance premium, with prices exceeding $11,000 in some areas.
Apartment owners in coastal cities face 15% HOA fees due to mandatory inspections and storm escalation.
Mortgage rates are still high, hovering around 6.5%, and monthly payments are a real barrier. Many first-time home buyers have been thinned by student loans and rising costs of living.
At the same time, sellers must adapt to slower markets. Price cuts and offers are becoming increasingly common, especially for apartments facing state insurance and structural security challenges.
So, what should the seller think? First, price your home in a realistic way. Overpriced means your list will sit. Consider providing incentives such as paying for closures to stand out. Know your fees. High insurance and maintenance fees can make your home more difficult to sell, so discuss those with potential buyers in advance. Most experts agree - this is not 2008. Today’s homeowners usually have equity and more responsible loans. Nevertheless, without insurance reform, a volatile market would be expected.
Currently, buyers should do their homework and work hard to negotiate. Sellers should remain realistic and flexible. Arcuri recommends that homeowners stay as they are.
"If your interest rates are low, be patient," he said. "These markets are cyclical. I've seen this again and again. Florida's fundamentals are still strong. Give it a few years and we're going to talk about the next housing boom."
This article provides information only and should not be construed as advice. It is without any warranty of any kind.