Florida Housing Markets Show Largest Price Declines, Risk Widespread Correction

Florida's real estate market, after a significant boom driven by pandemic-related migration and favorable economic factors, is showing clear signs of cooling and decline in several regions. Median home prices in the state have dropped by 3.2%, with total home sales falling nearly 9%, and some properties experiencing steep price cuts, such as a Punta Gorda listing reduced by 42%. Specific markets including Cape Coral, Lakeland, North Port, St. Petersburg, West Palm Beach, Winter Haven, and Tampa are flagged for high risk of major price declines, reflecting a broader correction in Florida's overheated housing market. Miami-Dade condominiums, in particular, are facing a downturn due to new state maintenance mandates, stricter certification rules, rising insurance costs, and dwindling buyer demand, leading to slight declines in condo values even as overall county property values grow modestly. These developments stem from an oversupply of homes following a construction surge, affordability challenges, increased property taxes, and recent hurricanes impacting insurance and market confidence. The Florida housing market's struggles mirror wider national trends of slowing home price growth and affordability issues, signaling a shift from the rapid escalation seen in recent years.