Despite slight declines in sales, tightening inventory and rising prices suggest a leveling market in Florida.
Source: Original report
Florida's housing market exhibited signs of stabilization in August, with tightening inventory and rising prices offsetting slight declines in closed sales. According to Florida Realtors Chief Economist Brad O'Connor, the latest data suggests a market settling into a steadier pace rather than a significant downturn.
Sales and Inventory Trends
Closed sales of single-family homes fell about 1.5% year over year, while condo and townhouse sales declined just under 2%. New pending sales of single-family homes also dipped, ending a 12-month streak of year-over-year gains. However, new pending condo and townhouse sales increased slightly, extending their growth streak to 13 months.
Inventory continued to tighten, with single-family homes down 13% and condos and townhouses falling 11.5% from a year earlier. This tightening inventory has helped support prices, with the single-family median sale price rising just over 1% to $415,000, and the condo and townhouse median price increasing nearly 3% to just under $298,000.
Mortgage Rates and Affordability
Mortgage rates have hovered in the 6 to 7 percent range for much of 2025 and 2026, creating affordability hurdles for many buyers. While these rates do not represent a drastic change, they are higher than a year ago and have tempered the pace of sales growth. O'Connor noted that the recent rate increases have contributed to a slowdown in home sales growth.
Local Variations and Future Outlook
O'Connor pointed out that statewide figures provide a general overview, and local conditions can differ based on property type, price point, and community. He also observed evidence of renewed activity and movement among buyers and sellers who had been anticipating a return to 2021 market conditions.
'There's not much here that suggests Florida's housing market is suddenly headed in a dramatically different direction,' O'Connor said. He emphasized that affordability challenges are likely to remain, but the market continues to show signs of stability.
For those looking to understand local market trends, Florida Realtors members can access SunStats at no cost to analyze the latest sales, inventory, and pricing trends in their specific markets.
