Central Florida’s Real Estate Reset: Inside Winter Haven’s New Market Reality

Written by:

Steve Marcinuk

Date:

10 Dec 2025

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The Central Florida real estate market is undergoing a significant correction, with local factors in Winter Haven revealing shifts in buyer behavior, inventory, and pricing that differ from broader regional trends. Patricia de Graaff of RE/MAX Heritage Professionals, a Dutch-born real estate agent with nearly a decade of experience in Winter Haven, provides a close-up view of how economic pressures and evolving preferences are reshaping this inland Florida community.

From International Business to Local Real Estate

De Graaff’s path to Central Florida real estate began 15 years ago, when she moved from the Netherlands for her husband’s job. After trying her hand at a European lingerie import business that struggled to gain traction locally, she was drawn to real estate during her own home search.

“While we were house hunting here, I got the idea of getting into real estate,” de Graaff says. Her international background has shaped her approach to client service, emphasizing a level of communication uncommon in the local industry.

“With the background and education I’ve had in the Netherlands, we are always used to getting a lot of communication and making sure that people stay up to date about everything,” she explains. “The feedback I get from a lot of my clients is that they like to stay in the loop, to make sure what’s going on.”

Decline of the Traditional Snowbird Market

One of the most notable changes in Winter Haven is the decline of the snowbird market, which once fueled steady demand for 55-plus communities. Rising living costs, higher homeowners’ insurance, and increased property taxes have made it harder for retirees to maintain two homes.

“It used to be that people nationwide had a property up north and a property down here as a snowbird property, just for the winter months,” de Graaff notes. “What we see going on right now is that people cannot always afford that anymore, between the cost of living, expenses for homeowners’ insurance, expenses for taxes. People have to make a choice.”

This shift has created a glut of inventory in age-restricted developments. Polk County now has 18 to 20 months of inventory for manufactured homes on land in 55-plus communities—far above normal levels. Instead of out-of-state retirees purchasing winter homes, more residents are downsizing, changing the typical buyer profile for these neighborhoods.

Homebuyers Reject HOAs

A strong local trend de Graaff has observed is growing resistance to homeowners associations (HOAs). This anti-HOA sentiment is fueling some of the most active segments of the market.

“The big trend that I see going on is a lot of people gearing away from HOAs,” she says. At a recent open house she hosted for a non-HOA home with a pool, 30 buyers attended, and the listing generated multiple offers. The consistent feedback: “All the people that came through those open houses all said the same. We’re done with all the HOA rules. We just want something where we can just do what we want, just bring our RV, bring our boat.”

Rising Insurance Costs Complicate Sales

Homeowners insurance is now a major hurdle in Central Florida real estate deals, forcing agents to change how they guide buyers. De Graaff urges clients to get insurance quotes during the inspection period instead of waiting until closing.

“People think that they’re going to pay the same as the current owner, and that is just not the case anymore,” she explains. Existing owners can often renew policies that new buyers cannot get, especially for homes with older roofs or other risk factors. Although Winter Haven’s inland location reduces some risks, premiums have still climbed sharply. De Graaff now insists on early four-point inspections and insurance verification to avoid last-minute deal failures.

Market Correction and New Construction Competition

Winter Haven is experiencing a correction, with home prices down 3–4% year-over-year and longer days on market. However, de Graaff notes that well-priced homes in desirable categories still attract strong interest.

New construction is another major factor. Builders are offering substantial incentives to both buyers and agents, making it harder for owners of recently built homes to compete.

“The builders are very willing to work with buyers, giving many incentives,” de Graaff says. “New construction is a big competition for resale. If I have a newer home, like a resale from a building in the last five to six years, we really have to be mindful because we are competing with all the new construction out there.”

Financial Stress Surfaces Among Recent Buyers

Financial pressure is becoming more apparent among homeowners who bought or refinanced during the 2020–2022 market peak. De Graaff recently met with sellers who, after refinancing for renovations, now owe more than their home’s current market value.

“I actually just today did a listing appointment where I thought there was equity, but they refinanced for some home improvements, and they’re technically underwater,” she says. Solar panel liens, often added during the boom, are complicating sales for these owners as well.

Multi-Generational Living on the Rise

Economic challenges are driving more families to pursue multi-generational living. De Graaff reports increased demand for homes with layouts that support extended families, such as dual master suites or in-law quarters.

“I see more multi-generational living right now, people wanting to combine households,” she notes, describing it as both a cost-saving measure and a response to shifting family needs.

Why This Correction Matters Now

After years of rapid appreciation—prices rose 15% to 40% annually from 2020 to 2022—Winter Haven is adjusting to more sustainable conditions. Higher mortgage rates, insurance premiums, and living costs are cooling demand and forcing a reset in pricing and expectations. The market’s correction is evident in increased inventory, slower sales, and more negotiation power for buyers, especially outside the most desirable property categories.

At the same time, the area’s affordability compared to larger cities continues to attract buyers priced out of Tampa or Orlando. This dynamic underscores Winter Haven’s role as a bellwether for how smaller Florida markets are adapting to post-pandemic realities.

Looking Ahead: Stabilization and Sustainable Growth

Despite the challenges, de Graaff is cautiously optimistic. She expects the adjustment to continue for another four to six months before the market stabilizes.

“I think we went a little too fast, like a little crazy roller coaster, 2020, 2021, and 2022, where we saw prices year to year going up like 15 to even 40%. That was not sustainable, and we all knew that,” she says.

De Graaff anticipates a return to more traditional appreciation rates—around 5% to 8% annually—in the next six to twelve months. “I think we’re going to get our regular market back, and with our regular market, I mean like a 5 to 8% increase a year. That’s more sustainable.”

Takeaways for Agents and Sellers

Winter Haven’s experience highlights how local conditions can diverge from state or national trends. The rise in insurance costs, the decline of snowbird demand, and the anti-HOA movement are shaping a new landscape for both buyers and sellers. For agents, de Graaff’s approach—prioritizing communication, verifying insurance early, and responding to buyer preferences—offers a model for navigating a market where adaptability and local knowledge are critical.

As Central Florida’s market continues to adjust, Winter Haven stands as an example of how smaller communities are recalibrating in real time, balancing affordability, lifestyle preferences, and economic pressures in a period of significant change.