Market trends, home prices and relocation advice from real estate experts
The demand for Florida real estate has been exceedingly strong over the past few years, but now in late November of 2023 the Florida market is undergoing a healthy rebalancing with the higher interest rates and increased cost of borrowing. As Florida’s home prices are still hovering near all-time highs, combined with higher rates and rising home insurance costs, some buyers are now becoming more challenged with overall home affordability.
At the end of October 2023, the median single family Florida home price was $410K
and this represents a 2% year-over-year price increase.
To view a breakdown of median home prices for each of Florida's city regions, be sure to visit our how expensive is it to live in Florida
page where we also overview the cost of living in Florida as compared to other states.
Median Prices of Florida Real Estate
|Single Family Homes
|| + 2%
|| + 4%
|Months of Inventory
Source: FloridaRealtors.org, October 2023
With so many people moving to Florida in recent years, this has caused housing prices to rise significantly in a relatively short period of time. This strong demand has also caused the amount of homes for sale, often referred to as available inventory, to remain relatively low at a 3.5 month's supply (a six month's supply is standard in a normal market). Additionally, as the majority of Florida homeowners have a mortgage rate well under the current 7%+ rate, many are choosing to remain in their current home with their low monthly payment, versus moving and taking on a higher payment, and this means fewer listings hitting the market each month. With less homes available to choose from, correctly priced homes are continuing to sell fairly quick after hitting the market and for homes in choice neighborhoods with good schools and preferred location, some multiple-offer situations are still occurring, but at a much lesser pace than was during the market peak.
Florida's new home construction market is also experiencing a pullback in consumer demand with the now higher rates. As such, some national home builders are now offering buyers, who opt to use their in-house lenders, a more attractive rate as well as credits to buyers to help buy down their rate. In terms of the build time for new Florida homes, wait times can now be 12+ months in some cases, versus the more typical 7 - 9 months build time (from initial contract to close) as construction labor shortages are now causing delays for home builders in various metropolitan markets around the state. While many who are relocating to Florida are eager to escape the cold weather or to start their retirement years as Floridians, and not necessarily wanting to wait this extended length of time for a home to be built, many are opting for recently-built homes in the resale market and will often pay a premium above ask price to secure a deal.