A Florida residential neighborhood and an upward pointing arrow
Illustration by Lanette Behiry/Real Estate News; Shutterstock

Inventory is way up in Florida — but prices are still rising 

Active listings are back to pre-pandemic levels, but home prices — and home insurance costs — keep going up, creating a tough market for buyers and sellers.

April 19, 2024
3 minutes

Key points:

  • According to Fed data, Florida had 131,880 active listings at the end of March, which is nearly identical to inventory levels in the autumn of 2019.
  • Florida Realtors reported new sale price data, showing that the median single-family home price is up 4% year-over-year while condo prices are up 3%.
  • Higher borrowing costs and steep home insurance rates are causing problems for buyers and sellers alike.

After a blistering hot bull run during much of the pandemic, Florida's housing market appears to be returning to normal — at least as far as supply is concerned. Recent Federal Reserve data on active listings, which pulls from Realtor.com, shows that Florida's housing inventory has returned to pre-pandemic levels.

Florida sees big inventory gains

By the end of March, the Sunshine State had nearly 132,000 total active listings — a number on par with the last three months in 2019. That's in marked contrast with inventory nationally, which is still far below pre-pandemic levels.

Listings declined substantially as the pandemic progressed, bottoming out at 35,585 active listings in February 2022, meaning that current inventory levels are more than three and a half times what they were at that point.

Florida Realtors also just released new numbers on active listings, showing that the state has more than 86,000 active listings for single-family homes and just over 57,000 active condo and townhouse listings, figures that are up 40.5% and 78% year-over-year, respectively. This translates to about four months of supply for single-family homes and over six and a half months' supply of condos and townhouses. 

But increasing supply isn't pushing prices down

Despite the notable bump in inventory, home prices are still moving higher, data shows. According to Florida Realtors, the median single-family home price in March was more than $420,000, or about a 4% increase from a year prior. The median condo price was $330,000 in March, or a 3% year-over-year gain. 

According to data from Realtor.com, the median list price in March for Florida homes was just under $455,000. That's down from last year's peak of $478,500 but higher than the previous winter's low of $450,000. The median listing price in January 2020, just weeks before the pandemic shutdowns went into effect, was just under $330,000.

Florida Realtors pegs the median time on market for single-family homes at 40 days, which is 14% increase from a year prior. Condos and townhouses are listed for a median of 43 days before going under contract, which is a significant 48% bump from a year ago. 

Mortgage rates and home insurance are impacting Florida buyers

"Persistently high mortgage interest rates hovering well above 6% continue to challenge buyers in Florida, especially first-time buyers," Florida Realtors President Gia Arvin said in the report. "While we are seeing an increase in new listings and in for-sale inventory, home sellers thinking of moving — whether it's downsizing or needing a larger home — are also impacted by the higher rates when considering their next home purchase."

But spiking home insurance rates have also been a major issue for Florida buyers and sellers. According to a new Redfin report, 70% of Florida homeowners have seen their home insurance costs increase in the last year. That's considerably higher than the 44.6% of homeowners nationwide who said they've seen insurance premiums increase over the last year. 

Redfin also notes that nearly one in eight survey respondents in Florida said their insurer dropped them entirely in the past year. And high insurance costs are actually prompting some Florida homeowners to move. Nearly 12% of the survey respondents in Florida who planned to move in the next year said that rising insurance costs was a primary reason for their relocation.

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