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Florida Home Prices Are Dropping Rapidly: Should You Buy While Prices Are Low?

May 18, 2025

5 min Read

Written by Martin Dasko

Edited by Zuri Anderson

Florida house and/or home for sale with appropriate sign -stock photo

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According to a recent Bloomberg report, Florida housing prices are struggling as the post-pandemic boom fades away. The report cited that inventory is at a record high, as increased insurance costs and higher mortgage rates have hurt affordability.

Bloomberg also shared data from Redfin that pointed out that the median price for all homes in Florida dropped 1.7% annually in March. Notably, the median price for a condo or co-op in the Sunshine State dropped around 7% in March to $307,500.

Is now a good time to buy a home in Florida? We asked real estate experts for their input since the state has seen the most significant housing price decline since 2021.

The Case for Buying Property in Florida Right Now

These are the main reasons why you may want to take advantage of the lower prices right now.

Lower Prices Aren’t Permanent

“Price corrections are not inherently negative because they often signal a healthier rebalancing of an overheated market,” said Austin Hair, a real estate developer and the managing partner at Leaders Real Estate. “Florida has long been a magnet for population growth, especially among retirees and remote workers, thanks to its favorable tax environment and climate.”

Since these demand drivers remain strong, the lower prices may be temporary, so you could use this opportunity to finally make an investment in that property you’ve been considering for retirement. Hair also pointed out that, from a passive investing standpoint, declining home prices can present a chance to enter a previously prohibitively expensive market.

You Can Build Your Real Estate Portfolio

“This market downturn comes after years of pandemic-induced, post-pandemic out-of-state buyer-driven growth, as many such buyers were ready to pay cash or offer high bids,” said Drake Shadwell, a real estate expert and manager at Clever Real Estate. “That wave has slowed sharply now, and with mortgage rates still at 7% or higher, affordability has been badly harmed.”

The increased inventory means you have more choices as a buyer and additional bargaining power, so you can find something on your terms to build up a real estate portfolio.

You Can Avoid Bidding Wars

Shadwell noted that in places like Tampa, Orlando and most of South Florida, homes are selling more slowly, giving the buyer room to negotiate. The main advantage these days is avoiding bidding wars that were driving prices up.

“Sideline buyers who are waiting for the market to drop might just discover that this is their moment, particularly if they’re buying for household use and can ride today’s elevated interest rates for a couple of years until they qualify to refinance,” he added.

What To Keep in Mind Before Purchasing Real Estate in Florida

Before you purchase a home in Florida, there are two key considerations that you can’t ignore.

New Condo Requirements Have Disrupted the Market

The Bloomberg piece noted that the condo market has been struggling with the introduction of much stricter building inspection laws and reserve funding requirements on aging buildings after the 2021 Surfside collapse.

“This has dramatically increased the cost of owning a condo, with many buildings now implementing special assessments to cover maintenance and compliance costs,” Shadwell elaborated on the matter. “I’ve seen examples where monthly condo fees have doubled or tripled, and some buildings now require six-figure reserves to meet new structural standards.”

Since the changes have made it harder to sell units, there are steeper price drops in the market. However, Shadwell stressed that you’ll have to conduct your own due diligence by reviewing the building’s reserve studies, inspection history and association finances prior to making an offer.

You Can Buy Land

“Florida’s ongoing population growth and development interest, coupled with this decrease in prices, presents a unique opportunity to buy land below peak pricing but still benefit from long-term appreciation,” remarked Paul Herskovitz, the founder and CEO of Discount Lots.

Since land is low-maintenance, the owner can build or hold onto it until it is suitable. Herskovitz has seen young families and investors use land as a strategic foot in the door, owning now and building later.

You’ll Want To Study the Specific Market

Hair noted that you’ll want to focus on the real estate fundamentals by buying in areas with sustained job growth, a strong rental demand and limited new inventory.

“For example, suburban markets near major metros like Orlando or Tampa often offer solid cash flow potential and long-term appreciation upside,” he elaborated.

Jessica Robinson, the co-owner and founder of Family Nest North Central Florida, shared that right now is one of the best windows in a long time for buyers in Florida.

“Prices are finally, finally coming down, and that’s not something we’ve been able to say for years,” she added. “Some areas, like Jacksonville, have dropped considerably, and inventory is also up.”

This means that some markets in Florida have less competition, fewer bidding wars and more space for negotiating. Robinson has even seen sellers get flexible with prices and offer concessions to close deals. If you’re looking to invest in Florida, this might be the right time for you to explore your options.

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