Florida Homes for Sale — Courtesy: Shutterstock — Andy Dean Photography
According to the most recent data, purchasing a home is becoming more affordable in a number of Florida urban regions as inventory increases and demand declines, even though home prices are still growing nationwide.
According to a recent National Association of Realtors (NAR) survey, prices increased in 83 percent of metro areas nationwide as of the first quarter of 2025. Ten Sunshine State metro regions saw a decrease in property prices over that time, while one saw no change at all.
The Significance of It
During the epidemic, when a wave of out-of-state Americans chose to relocate to the sunny, relatively more affordable Sunshine State due to the advent of remote work, the Florida property market was among the hottest in the nation.
The state saw a sharp increase in property values and prices as a result of the boom in housing demand during these years, which in turn fueled a boom in new construction projects.
The Florida housing market is now cooling down in many parts of the state as unsold inventory piles up, especially in cities that had previously seen surges in demand. This is because in-migration to Florida, which is the process of permanently moving to a different part of one’s home country, has slowed down since the pandemic and historically high mortgage rates continue to deter prospective homebuyers.
Things You Should Know
Sebastian experienced the biggest reduction among Florida’s hardest-hit metro areas, with prices falling 8.2 percent year over year between January and March to a median of $400,000.
Next in line was Punta Gorda, where the median price dropped 6.8 percent to $353,800. Other significant declines include North Port-Sarasota-Bradenton, which declined 3.3 percent to $493,000. Cape Coral also decreased 3.6 percent to $400,000.
In places like Lakeland-Winter Haven, where property values dropped 2.5 percent from $333,300 in the first quarter of 2024 to $325,000 in the first quarter of 2025, smaller drops were observed.
In the same year, Deltona-Daytona Beach-Ormond Beach real estate prices dropped 2.2% to $352,000. Tampa-St. Petersburg-Clearwater dropped 1.3 percent to $400,000. Gainesville dropped 1.4 percent to $349,400.
The median home prices in Palm Bay-Melbourne-Titusville and Port St. Lucie both saw minor decreases of 1.2 percent, with the former’s currently at $365,500 and the latter at $420,000.
In comparison to the first quarter of 2024, prices in Jacksonville did not significantly alter. Between January and March, the city’s median home price was $390,000.
Price declines have been ascribed by analysts to a combination of declining buyer demand and rising mortgage rates. The cost of homeownership has increased due to rising interest rates, making it less affordable for potential purchasers.
Furthermore, despite the recent market stabilization, Florida residents continue to pay the highest property insurance premiums in the nation, and prices are predicted to rise further this year. The ongoing affordability crisis is being made worse by growing homeowner association (HOA) dues, particularly for condo owners in South Florida.
What Individuals Are Saying
“Most metro markets continue to set new record highs for home prices,” stated Lawrence Yun, chief economist for the National Association of Realtors, in a news release. The Northeast saw the best sales and price gains by percentage in the first quarter. The South trailed behind with dwindling sales and essentially no price growth, even with the more robust employment additions.
“Home prices are now rising in a few places, such as Boise, Las Vegas, Salt Lake City, San Francisco, and Seattle, where they fell a year or two ago,” he continued. In a same vein, other markets—like Austin, San Antonio, Huntsville, Myrtle Beach, Raleigh, and numerous Florida markets—where prices are currently declining but job growth is strong may soon see a rebound.
What Follows
Given that mortgage rates are still at 7 percent and are predicted to stay around 6 percent through 2025 and 2026, affordability is probably going to continue to be a problem for prospective American homebuyers.
Even though many Florida metro areas are going through a much-needed price correction that should provide some relief to prospective homeowners, state-level price increases and other obstacles, such as rising HOA dues and property insurance rates, will inevitably keep many homebuyers off the ladder.
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Born and raised in South Florida, Krystal is a recent graduate from the University of Miami with professional writing experience at the collegiate and national news outlet levels. She’s a foodie who loves all things travel, the beach, & visiting new places throughout Florida.