Florida Home for Sale — Courtesy: Shutterstock — Andy Dean Photography
As inventory rises and buyers are suppressed by record high mortgage rates, rising homeowners association (HOA) dues, and rising house insurance prices, the Sunshine State is seeing some of the biggest price declines in the nation.
According to the most recent data given by Florida Realtors, the median transaction price of a typical single-family home in Florida was $415,000 in May, which was 2.7 percent lower than a year earlier. In the rest of the country, prices continued to rise, but considerably more slowly than in years past.
However, not all markets in Florida are doing similarly. While the state as a whole is seeing a slump, some towns, like Miami, are actually continuing to record price increases, while others are witnessing considerably greater drops.
Where the Most Home Prices Are Declining
According to Florida Realtors, the Naples metropolitan statistical region (MSA), which encompasses Immokalee and Marco Island, saw the largest decline in median sale prices in the single-family market between May 2024 and May 2025.
Despite being far higher than the statewide median, the price of a property in Naples in May was $767,800, a 19.2% decrease from the same month the previous year. The Villages ($347,000, -11.3 percent), Sebastian-Vero Beach ($386,190, -10.2 percent), North Port-Sarasota-Bradenton ($475,000, -9.9 percent), Punta Gorda ($325,000, -14.5 percent), and Cape Coral-Fort Myers ($375,000, -9.6 percent) came next.
According to Florida Realtors Chief Economist Dr. Brad O’Connor, “a clear divergence from last year’s price levels is starting to emerge.” “Still, prices remain in the neighborhood of where they’ve been since early 2022 and are 54 percent above where they were at this time in 2020.”
Between May 2024 and May 2025, prices in nine of the 22 MSAs that Florida Realtors examined were either increasing or staying the same. Gainesville (+6.6 percent to $376,000), Sebring (+3.6 percent to $285,000), and Ocala (+1.8 percent to $295,000) had the most price increases over the previous year.
The Reasons Behind These Cities’ Declining Home Prices
Florida cities, which grew very hot during the 2008 homebuying craze and are currently experiencing a sharp increase in inventory, are seeing the biggest price declines. According to the most recent Redfin data, inventory at the state level has surpassed pre-pandemic levels, with 225,020 active listings in June.
This increase in inventory has been fueled by Florida’s recent construction boom, which was sparked by the state’s epidemic boom, as well as the fact that fewer homes are selling because of persistent affordability problems. Redfin reports that 31.6 percent of listings had price reductions in June, up 0.3 percent from the previous year, and that 31,847 houses were sold in Florida, down 4.1 percent from the previous year.
In essence, there are more homes available in Florida than there are interested buyers, which is driving down prices.
The market for single-family homes in Florida is adapting to the new normal. The spike in domestic in-migration that we witnessed during the epidemic is leveling off, and some buyers have become more cautious due to elevated mortgage rates,” Tim Weisheyer, 2025 Florida Realtors President and broker-owner of Dream Builders Realty and dbrCommercial Real Estate Services, told Newsweek.
Homes were going off the market in less than ten days back in 2021; they frequently closed before the month was over and didn’t even appear in monthly inventory statistics. Many are waiting 40 days or longer to enter into contracts these days, so they are only included in inventory statistics for one or even two months,” he said. “So, while it may look like inventory is rising sharply, it’s more about slower turnover than a flood of new listings.”
Weisheyer claimed that this adjustment is providing buyers with something they haven’t had in a long time: time. “Without the stress of bidding wars, buyers can compare options, negotiate, and make well-informed decisions.” In the long run, it’s a healthier dynamic,” he stated. “Sellers are also adapting, particularly in regions where there is severe competition from new building. Compared to former years, the market is more balanced now.
“Sellers of existing homes aren’t just competing with one another, they’re up against builders who are motivated to move inventory and often have the flexibility to offer competitive prices and incentives like interest rate buy-downs,” Weisheyer said of Southwest Florida, where many of the largest price drops are concentrated. “That creates a more competitive environment and, in some cases, has contributed to downward pressure on resale prices.”
These same statewide issues, along with some of their own, are plaguing some of the cities that are seeing the largest price reductions. Following Hurricane Ian, Naples’ tourism sector suffered greatly, leading to job losses and a decline in the metro’s real estate market.
Like a large portion of Southwest Florida, the city is also having difficulty adjusting to new safety regulations that have caused a tumult in the condo market. This has led to an increase in the amount of real estate for sale at a time when buyers are pulling away from the market because of the increased risk of natural disasters and the rising costs of fees and home insurance.
In Punta Gorda, which is currently recovering from storm Ian like Naples, same factors—higher insurance rates because of the greater storm risk and higher replacement costs—have also helped to drive down prices.
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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.