Florida's Real Estate Reality Check: A Veteran Agent's Take on Today's Market Challenges

Written by:

Steve Marcinuk

Date:

23 Jul 2025

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The Florida real estate market has changed significantly since the pandemic-driven surge of 2020-2021. While headlines often focus on broad trends, the reality for buyers, sellers, and investors is more nuanced than simple market classifications suggest.

Jacqueline Coleman, Coldwell Banker Real Estate Agent, with nearly 15 years of experience in Florida’s Fort Pierce area and surrounding counties, has witnessed these shifts firsthand. Her perspective offers valuable insights into how current market dynamics are affecting different participants in ways that don’t always align with conventional wisdom.

The “AIR” Problem Choking Florida Buyers

Coleman uses a simple acronym to describe the primary obstacles facing today’s buyers: AIR – Affordability, Insurance rates, and interest Rates. “It’s no joke,” she explains. “Someone who may have A-plus credit, although we know credit nowadays doesn’t just give you the ability to buy, because if your debt-to-income ratio is above the means, you could be in the 800 club and still not be able to afford a home.”

This triple pressure is particularly acute in Florida, where insurance rates spike during hurricane season. Interest rates hovering around 7% compound these challenges, changing buyer behavior and market dynamics.

Commission Changes Add New Complexity

The National Association of Realtors’ August 2024 commission structure changes have introduced another layer of complexity. Previously, seller-paid commissions were standard, with listing agents typically offering 3% to buyer’s agents as part of a 6% total commission split.

“Those tables have turned now,” Coleman notes. “The seller has the option of this, they are understanding that they no longer have to pay a portion of the commission to whoever brings the buyer to the table.”

This shift creates additional financial pressure on buyers who may already be stretched thin. On a $500,000 home, a 3% buyer’s agent commission represents $15,000, a substantial sum for buyers who may lack enough for closing costs.

Seller Strategies Depend on Financial Position

The seller’s market isn’t uniform across all price points and situations. Coleman observes a clear divide between sellers based on their financial flexibility.

“I have a seller who has increased their price where most people are reducing, but because they’re in a financial situation where they are secure, they are able to take and wait the market out,” she explains.

Conversely, sellers facing financial pressure from life changes find themselves in a more challenging position. “Those that are having to make a move because of the dynamics within the household change may have a little pressure applied to them. They may have to get creative and think outside of the box.”

This creativity often involves offering closing cost assistance, paying buyer agent commissions, or providing bonuses to attract buyers, all of which reduce the seller’s net proceeds.

Land Sales Reflect Investor Adaptation

Coleman has been active in land sales, which reflect broader investor strategies adapting to current conditions. Many of these lots come from investors who purchased three to four years ago when residential inventory was scarce and building was the main option.

Now these investors are liquidating land holdings, creating opportunities for both individual buyers and developers.

Investment Opportunities Require Realistic Expectations

For investors entering the Florida market, Coleman advocates a measured approach that acknowledges current realities. While some still seek traditional “tear-down” properties, she recommends considering multi-unit properties as an entry point.

“I strongly encourage you to not bite off more than you can chew, maybe look into duplexes, triplexes, quadplexes, whichever your wallet can take and afford,” she advises. “That gives you the ability to live on one side and allow the other side to pay for itself.”

This strategy allows new investors to learn the business while generating income, providing a foundation for future expansion.

Rental Market Dynamics

The rental market in Coleman’s area reflects the broader supply-demand imbalance that has characterized Florida real estate. Average rents for two-bedroom units range from $1,800 to $2,100, still elevated from pre-pandemic levels but showing some stabilization.

Coleman reports that tenant payment issues aren’t widespread. Instead, the primary challenge is property owners deciding to sell, particularly when tenants lack long-term lease protection.

“What I am seeing is the owners of those homes now wanting to put them on the market, and a lot of tenants don’t have leases in place to secure their space,” she notes. This creates displacement pressure even when tenants are current on rent payments.

Market Advice for All Participants

Coleman’s experience has taught her that success in today’s market requires realistic expectations and thorough preparation across all participant categories.

For sellers, she emphasizes the importance of understanding local market absorption rates rather than relying on broad market generalizations. “You’re not a psychic when it comes to that. You don’t have that kind of crystal ball,” she tells sellers who expect guaranteed outcomes.

Buyers need to adjust their expectations while focusing on market entry. “You may have 10 things on your list – you have to understand that this is a market you may only get five out of the 10,” Coleman explains. “The thing we have to remember as buyers is get a seat at the table.”

For investors, the key is ensuring adequate returns. “Just because the price looks good, you have to determine if you’re going to get a return on your rate,” she advises. “That steal, is it going to be enough where you can turn around and get a return on your rate quick enough for you?”

Looking Forward

Florida’s real estate market continues to change as participants adapt to new realities around affordability, insurance costs, interest rates, and commission structures. Success increasingly depends on understanding local market dynamics rather than relying on broad generalizations about buyer’s or seller’s markets.

As Coleman puts it, “It depends on the circumstances,” a phrase that captures the nuanced, case-by-case nature of today’s Florida real estate environment. For investors and industry professionals, this complexity creates both challenges and opportunities for those willing to adapt their strategies to current market realities.

With nearly 15 years of local experience, Jacqueline Coleman helps buyers, sellers, and investors navigate affordability, insurance, and interest rate challenges. Call 772-519-2100 or email [email protected] to get expert guidance in today’s dynamic landscape.