3 Big Real Estate Trends Florida Buyers and Sellers Are Dealing With Right Now

Written by:

Rudi Davis

Date:

07 Jan 2026

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Florida’s real estate market has changed significantly over the past two years. Rising mortgage rates, new condo regulations, and a surge in available homes have shifted the balance of power between buyers and sellers. Here are the three most important trends shaping the market right now—and what they mean for anyone considering a move.

Homes Are Sitting Longer – and Sellers Are Cutting Prices

After years of rapid sales, Florida’s housing market has slowed. Homes that once attracted multiple offers within days now linger on the market for weeks or even months. Chad Cummings, a managing attorney at Cummings & Cummings Law who works with buyers and sellers across Florida, reports that listings in excellent condition have been on the market for a year with only two offers.

The primary driver is higher mortgage rates. When rates rose above 7%, buyers who previously qualified for a $500,000 home found their purchasing power reduced to $440,000. That extra $300 per month in interest payments has forced many to reconsider their budgets or put off buying altogether.

“Until we get those interest rates back under 5%, I don’t see a lot of change,” says Cummings.

Sellers are responding by cutting prices sooner. In many markets, if a home doesn’t receive an offer within two weeks, sellers reduce the cost by day 15—much faster than the traditional 30-day mark. This new urgency gives buyers more room to negotiate, especially if they are patient and flexible.

For sellers, the takeaway is clear: the days of listing high and waiting for a bidding war are over. Pricing a home correctly from the start is essential. Overpricing will likely result in the property sitting on the market and ultimately requiring a price reduction.

Condo Fees Are Skyrocketing – and Owners Are Struggling

The 2021 Champlain Towers collapse in Surfside led to significant regulatory changes for Florida condominiums. The state now requires condo associations to fully fund reserve accounts for future repairs, ending the practice of deferring essential maintenance.

The financial impact on owners has been severe. Monthly homeowners association (HOA) fees that were once $200 have jumped to $1,000. In some luxury buildings, costs have risen from $1,000 to as much as $4,000 per month. Cummings notes, “That’s a big problem for anybody. That’s an even bigger problem if you are retired or elderly and living on a fixed income.”

In addition to higher monthly fees, some owners are facing special assessments—one-time bills of $100,000, $200,000, or more—to pay for urgent repairs. For retirees living on Social Security, these assessments can be impossible to cover.

This situation has created opportunities for developers. Some are offering condo owners buyouts at 20% above market value to acquire enough units for redevelopment. For owners facing massive repair bills, these offers can seem like a solution, but finding another affordable place to live in Florida remains a challenge, even with a premium payout.

If you own a condo, Cummings recommends requesting the most recent reserve study and inspection reports from your association. Knowing the building’s repair needs and financial obligations is crucial to avoiding unexpected costs.

Inventory Is Piling Up – and Buyers Finally Have Choices

For the first time in years, buyers in Florida have a wide range of homes to choose from. Inventory has increased significantly across the state, giving buyers more time to tour properties, compare prices, and negotiate terms.

The urgency that defined the 2021 and 2022 market—when buyers waived inspections and bid above asking price—has faded. Now, buyers often take a week or more to decide, rather than rushing to submit an offer within 48 hours.

“It’s a much less frantic pace, which means buyers can actually think before they bid,” Cummings says.

This new environment has increased competition among sellers. Homes that are overpriced, poorly staged, or in need of repairs are sitting unsold. Buyers have become more selective and are willing to walk away if a property doesn’t meet their standards.

Buyers now have leverage to negotiate. Asking for closing cost credits, rate buydowns, or repairs is common. Touring multiple homes before making an offer is encouraged, and sellers are more willing to negotiate than at any time in recent years.

What to Watch Next

Several upcoming factors could further influence Florida’s real estate market:

If mortgage rates fall below 6%, more buyers are likely to re-enter the market, potentially increasing competition for desirable homes.

A spike in new listings is expected after the school year ends or following major holidays. More inventory could give buyers even more negotiating power.

If condo fees and special assessments continue to rise, more owners may decide to sell or accept developer buyouts, which could increase the number of available units in certain areas.

The Bottom Line

Florida’s real estate market now favors buyers more than it has in years. Sellers must price their homes competitively and act quickly to attract offers. Buyers have the luxury of time and can negotiate better terms. Condo owners need to stay informed about their building’s financial health to avoid unexpected costs.