Florida Housing Market Update: Rising Inventory and Falling Prices in May 2025
In May 2025, Florida's housing market showcased a vital transition with notable increases in for-sale inventory and reductions in median prices compared to the previous year. According to the latest data from Florida Realtors®, this significant shift reflects evolving trends that favor both buyers and sellers in the current climate.
Tim Weisheyer, the President of Florida Realtors for 2025 and a prominent broker-owner, emphasizes that the market is discovering a balanced state, a comforting development after prolonged periods of intense demand. He states, "With the rise in inventory and opportunities, buyers are now transitioning their focus towards long-term value. Meanwhile, sellers are being strategic in their pricing to entice buyers." This market transformation underscores the necessity for preparation and expert guidance, particularly from local realtors.
In terms of sales activity, the report noted a total of 24,756 closed sales for existing single-family homes across Florida in May, marking a decrease of 5.7% from year-on-year figures. Additionally, sales for existing condo-townhouses fell dramatically, amounting to only 8,345 closures, which represents a striking 19.9% decline from May 2024. It’s important to note that closed sales typically occur 30 to 90 days post-contract agreement, and this lag may further contribute to the results.
The statewide median sales price for existing single-family homes in Florida during May stood at $415,000. This reflects a decrease of 2.7% from the corresponding month a year earlier. Likewise, the median price for condo-townhouse units was pegged at $310,000, indicating a drop of 6.1% year-on-year. The median prices serve as an essential marker as they represent the midpoint, meaning that half of the transactions were priced above and half below.
Dr. Brad O'Connor, Chief Economist for Florida Realtors, pointed out that although this marks the third consecutive month of year-over-year price declines in single-family homes, the decrease in May was less significant than that observed in April. He adds that while a divergence from last year's price levels is occurring, the average prices are still around 54% higher than those from 2020, indicating a significant growth trend over the last few years.
A deeper analysis reveals that in contrast to single-family homes, the decline in condo and townhouse prices has been a persistent trend since July of the previous year. Interestingly, the current statewide median prices for both single-family homes and condos remain about 54% higher than in 2020. However, in terms of condos and townhouses, out of 22 metropolitan areas within Florida, 19 have reported a year-over-year price decline.
The increase in for-sale inventory signifies that some price adjustments in both categories are anticipated, as noted by Dr. O'Connor. He explained, "We have been tracking the ongoing expansion of Florida's housing inventory since early 2022. Currently, inventory levels surpass those typical of the stable market conditions experienced from 2014 to 2019. Still, they are far below what was seen during the price correction period of 2008, which explains the relatively minor price declines we are observing now."
On the supply front, active listings rose by 28.8% year-over-year for both existing single-family homes and condos/extensive townhouse properties, compared to May 2024. Single-family homes had a supply of 5.6 months, while condo-townhouse units exhibited a larger supply of 10.3 months, showcasing a stark contrast in availability across the different property types.
For those interested in a complete overview of Florida's housing activity, reports can be accessed via the Florida Realtors Newsroom under "Latest Releases". Florida Realtors® is dedicated to enhancing the real estate industry in Florida by providing programs, services, education, and advocacy for roughly 238,000 members across 50 boards and associations.
For expert real estate support and to navigate this shifting market effectively, relying on experienced local realtors could play a crucial role in achieving favorable outcomes for buyers and sellers alike.