South Florida’s Market Reality and a Veteran’s Take on Rising Costs and New Dynamics

Written by:

Steve Marcinuk

Date:

20 Oct 2025

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The South Florida real estate market is undergoing a notable transition as the intensity of the pandemic-era boom fades and more balanced conditions emerge. After years marked by rapid price increases and competitive bidding, agents now face a market with rising inventory and increased negotiating power for buyers.

Arkadiy Abdurakhmanov, a real estate agent with United Realty Group who has spent two decades working in South Florida, shares insight from years of firsthand experience. His perspective reflects the market’s evolution from the early 2000s, through the COVID-driven surge, and into today’s more stable environment.

The Post-Pandemic Market Shift

The sharp price increases seen in 2021 and 2022 led to expectations that are now being reset. “COVID honestly destroyed real estate agent professionality, because in those two years, the price was going up dramatically,” Arkadiy says. “Comparative market analysis wasn’t working, and so many people just put prices from the ceiling, from the roof.”

This period of inflated pricing has left many sellers struggling to accept the market’s new reality. Properties that would have quickly attracted buyers at premium prices just a couple of years ago are now taking longer to sell as owners adjust to current conditions.

The adjustment is about more than just price, it’s a return to the fundamentals of real estate. “Now again, people understand they hire a real estate agent or real estate broker not because they want to, but because they’re professionals,” Arkadiy notes. “They know what they’re doing, and they know how to advertise and how to introduce properties.”

Condo Market Faces Multiple Challenges

Nowhere are the market’s difficulties more evident than in the condominium sector, where several issues are converging to create serious obstacles for buyers and sellers alike.

HOA fees have risen sharply, becoming a major concern for transactions. “When I came to the United States, the most expensive maintenance was $225, an affordable price,” Arkadiy recalls. “Now, most associations charge $1,000.” He currently has listings with maintenance fees as high as $1,387 per month.

Combined with property taxes that can reach $4,000 to $6,000 annually and insurance costs around $4,000, many condo owners now face annual carrying costs of $20,000 to $25,000 before even factoring in mortgage payments. This has pushed many potential buyers away from the condo market altogether.

Years of deferred maintenance have made the situation worse. “I worked in the accounting department of property management, and I saw that in 2008, 2012, 2013, they made decisions not to put money into reserves,” Arkadiy explains. “Now we see this is a big challenge, because if you don’t have money in reserves, you can’t fix the building. But everything gets older and has to be fixed.”

Shifting Development Patterns and Urbanization

Despite these headwinds, some areas are seeing growth fueled by changes in lifestyle preferences. In Coral Springs, for instance, inventory increased by 13% from May to June, but much of this uptick reflects new construction instead of distressed sales.

The city is evolving from a traditional suburban area into a more urban setting. “They built buildings where on the first floor you have businesses, restaurants, shopping centers, but on the second, third floors, there are residential properties,” Arkadiy observes. “People like this because they don’t want to drive everywhere.”

This trend addresses one of Florida’s ongoing challenges: its reliance on cars. “In Florida, you have to drive from age 15 to age 95,” he notes. “Sometimes people who aren’t driving find this a disadvantage.”

The Rise of Cash Buyers

A significant trend is the continued influence of cash buyers, whose profiles have changed in recent years. “Most cash buyers are not Floridian,” Arkadiy explains. “They’re from California, from New York, from Boston, from states where property is much more expensive than Florida.”

Before the pandemic, he says, someone could sell a home in California and purchase five properties in Florida. “Now it’s not five, now it’s two or three, but it’s still more than in California.” This dynamic continues to support certain market segments, even as higher interest rates make financing more difficult for local buyers.

Interest Rate Adjustments and Their Effects

The shift in mortgage rates has been a major adjustment for buyers used to historically low rates. “Just two or three years ago, the mortgage was 2% or 3%, and people got spoiled,” Arkadiy says. “When I bought my house 26 years ago, I studied to be a mortgage broker, and they told me if you buy property with a loan up to 12%, you’re a winner. But now 6% and everybody says, ‘Oh, very expensive.’”

This environment has created a lock-in effect, where homeowners are reluctant to sell and lose their low-rate mortgages. As a result, inventory remains constrained in certain parts of the market.

Honest Representation as a Guiding Principle

Throughout the market’s ups and downs, Arkadiy has focused on long-term client relationships rather than quick deals. “I’m probably one of the few realtors who sometimes advises people not to sell property,” he says. “If you have equity, you have collateral, if you sell, you lose because your money will disappear very soon.”

His approach to marketing is similarly straightforward: “I don’t do false advertising. I like advertising, but not false. Some properties have many advantages, but most of them, unfortunately, have many disadvantages. When we sell, we have to tell the truth.”

Looking Ahead to a More Sustainable Market

The South Florida market is settling into a more sustainable pattern after years of extreme growth. While this period of adjustment presents challenges for sellers who purchased at peak prices, it also opens possibilities for buyers who were previously priced out.

Key factors to monitor include potential changes to property tax rates, insurance premiums, and HOA management practices, all of which have a significant impact on the total cost of owning a home in the region. As Arkadiy puts it, “People are supposed to enjoy buying property, not become slaves to the property.”

For now, the market continues its gradual adjustment as buyers and sellers adapt to current realities. The sharp price increases of recent years are stabilizing, providing opportunities for new buyers and requiring sellers to price properties more realistically.

The Changing Landscape for Agents and Buyers

As the market becomes more balanced, agents are finding that expertise and professionalism are once again valued. The days when properties would sell regardless of pricing or marketing are over. Agents must now rely on accurate market data, effective advertising, and honest representation to succeed.

Buyers, meanwhile, have more choices and negotiating power than in recent memory. With inventory on the rise and sellers more willing to negotiate, especially in the condo sector, buyers can be more selective. However, the high carrying costs associated with condos and the lingering effects of deferred maintenance mean that due diligence is more important than ever.

Sellers are learning to navigate these new dynamics as well. Pricing properties correctly, understanding the impact of rising fees and taxes, and addressing deferred maintenance are now crucial steps in achieving a successful sale.

A Market in Transition

South Florida’s real estate market is moving away from the volatility of the pandemic years and toward a more stable, sustainable environment. While challenges remain, especially regarding rising costs and the complexities of the condo market, the region’s long-term appeal endures.

The influx of out-of-state buyers, ongoing development in urban centers, and a renewed focus on professional standards are shaping a market that is different from the one seen just a few years ago. For buyers and sellers alike, understanding these changes and working with experienced professionals is essential to navigating the current landscape.

As the market continues to evolve, those who adapt to the new realities, by being realistic about pricing, diligent about costs, and honest in their dealings, will be best positioned to succeed in South Florida’s next chapter.