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Are Condo Prices Dropping in Florida? What Buyers and Sellers Need to Know in End of 2025
- Enrique Perez
- Oct 29
- 7 min read
If you are watching the Florida real estate market, you have likely noticed significant shifts in condo pricing. The simple answer is yes—condominium prices are dropping in Florida, with certain areas experiencing declines of 5-15% year-over-year. However, the full picture is more nuanced, and understanding what is driving these changes can help you make smarter real estate decisions.
At Maco Realty Group, we are deeply embedded in Florida's local real estate landscape, and we are here to guide you through this evolving market with expert insights and transparent data.
The Current State of Florida's Condo Market
Price Trends Across Florida
Statewide median condo prices have declined from $350,000 in June 2024 to $330,000 in June 2025—a 5.7% year-over-year drop
Luxury condos have seen even sharper declines, with top-tier pending contracts falling from $1.39 million in June 2022 to $950,000 in June 2025 (-32%)
In Broward and Palm Beach counties, median condo values dropped 13.6% in 2024 compared to 2023
Cities like Punta Gorda have experienced 11.4% price declines, while Tampa and North Port saw drops near 8%
Why Are Condo Prices Falling?
Several interconnected factors are reshaping Florida's condo market:
1. Post-Surfside Building Safety Regulations
The tragic 2021 Champlain Towers South collapse in Surfside triggered sweeping legislative changes. Florida now mandates:
Regular structural inspections for condos three or more stories tall
Increased reserve funding for repairs
Higher safety standards for aging coastal buildings
While these regulations protect residents, they have created financial burdens. HOA fees and special assessments have increased by hundreds of dollars monthly in many buildings, causing owners—particularly seniors on fixed incomes—to flood the market with inventory.
2. Skyrocketing Insurance Costs
Florida homeowners insurance premiums have doubled in the past 6-9 months. While the national median premium increased 33% over three years, Florida owners face significantly steeper hikes—some exceeding $10,000 annually. These elevated carrying costs have made condo ownership less attractive, especially when combined with rising HOA fees.
3. Mortgage Rate Challenges
Higher interest rates throughout 2024 and early 2025 (hovering around 6.5-7%) have reduced buyer purchasing power. More than 1,400 condo buildings in Florida are on Fannie Mae's "blacklist," making conventional financing impossible for these properties. Cash has become king in this environment.
4. Increased Inventory
Motivated sellers have pushed inventory up 14.7% year-over-year. Nearly 43% of Florida condo sellers reduced their asking prices in June 2025, up from just 17% in 2021—a staggering 153% increase. In Miami alone, 92.5% of condos sold below their original list price in February 2025.
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Regional Variations: Not All Florida Markets Are Equal
While the overall trend shows declining condo prices, Florida's real estate landscape varies significantly by region:
South Florida (Miami, Fort Lauderdale, West Palm Beach)
Miami-Dade: Condo sales increased 2.4% in September 2025 (first positive growth in months)
Broward County: September marked the first month in 18 months with year-over-year sales growth
Palm Beach County: Condo sales jumped 17.4% in September 2025
Despite price declines, median condo prices in all three counties began rising again in late 2025, suggesting a potential market bottom.
Tampa Bay Area
The Tampa region has experienced notable corrections but shows signs of stabilization with increased buyer activity in affordable price ranges.
Southwest Florida
Areas like Cape Coral and Punta Gorda—hit hardest by hurricanes and insurance issues—continue facing downward pressure but may present opportunities for strategic buyers.
Orlando
While Orlando's condo market has cooled, strong job growth and inland location provide more stability compared to coastal markets.
Is Now a Good Time to Buy a Condo in Florida?
For Buyers: Yes, opportunities abound. The current market favors buyers in several ways:
Advantages for Condo Buyers
Buyer's market conditions: With 8.2 months of condo supply (compared to 6 months for a balanced market), buyers have negotiating leverage
Lower prices: Condos are 5-15% below peak prices, depending on location
Motivated sellers: 43% of sellers are reducing prices, creating room for negotiation
Increased selection: Inventory has grown significantly across all major markets
What Smart Buyers Should Consider
Building financial health: Request HOA financial statements, reserve funding reports, and inspection histories
Insurance eligibility: Verify the building isn't on Fannie Mae's blacklist and confirm insurance costs
Compliance status: Ensure the condo association is compliant with new Florida building safety laws
Age and location: Newer buildings and those away from immediate coastal zones may offer better value
Cash or strong financing: Cash buyers have distinct advantages in this market
What About Sellers?
For Sellers: Strategic timing matters. While the current market is challenging, it is not hopeless:
Seller Strategies
Price competitively: Overpricing in this market means extended days on market
Highlight compliance: Buildings that meet new safety requirements and have healthy reserves are more attractive
Emphasize value-adds: Energy-efficient upgrades, flood mitigation, and recent renovations increase appeal
Consider spring 2026: Market predictions suggest improved conditions with lower mortgage rates (potentially 5.5-6% by late 2026)
Work with local experts: Market knowledge is crucial—partnering with experienced agents like Maco Realty Group ensures you maximize your property's value
The Future Outlook: When Will the Market Recover?
Short-Term (2025)
The market is showing early stabilization signals. September 2025 marked the first month of positive condo sales growth statewide in over two years. As mortgage rates decline toward 6% and inventory stabilizes, momentum is expected to continue building through Q4 2025.
Medium-Term (2026)
Most economists predict:
Mortgage rates falling to the 5.5-6% range by late 2026
Gradual price stabilization or modest 1-4% appreciation
Increased sales volume as affordability improves
Continued demand from retiring Baby Boomers and remote workers
Long-Term (2027-2030)
Florida's fundamental strengths—population growth, economic diversification, favorable tax environment, and lifestyle appeal—should drive gradual recovery. Condominium prices are expected to appreciate modestly (3-5% annually) once the current adjustment completes, though insurance costs remain a wildcard.
Condo vs. Single-Family Homes: A Tale of Two Markets
It is critical to understand that Florida's single-family home market tells a completely different story:
Single-family median prices are up 5-8% year-over-year in most markets
Inventory remains tighter for single-family homes
Single-family homes aren't subject to HOA reserve requirements or building inspections affecting condos
This divergence highlights the unique pressures on the condo segment specifically.
Why Choose Maco Realty Group for Your Florida Real Estate Needs?
As a locally-focused Florida real estate firm, Maco Realty Group brings unparalleled market knowledge and commitment to your success:
Our Competitive Advantages
✅ Deep local expertise: We understand neighborhood-specific trends, building reputations, and community dynamics
✅ Market intelligence: Real-time access to pricing trends, inventory shifts, and emerging opportunities
✅ Negotiation prowess: In a buyer's market, skilled negotiation can save tens of thousands
✅ Comprehensive vetting: We help buyers identify financially healthy buildings and avoid potential pitfalls
✅ Seller marketing: Strategic pricing and marketing to position your property competitively
✅ Full-service support: From initial consultation through closing, we're with you every step
Making the Smart Move in Today's Market
Whether you are a first-time buyer seeing opportunity in lower prices, an investor searching for value, or a seller navigating challenging conditions, the Florida condominium market requires expertise and strategic thinking.
The current downturn will not last forever. Markets that correct create opportunities for those positioned to act. However, success requires:
Accurate, up-to-date information (not outdated assumptions)
Local market knowledge (Florida isn't monolithic—each market has unique dynamics)
Financial analysis (understanding true carrying costs beyond purchase price)
Professional guidance (experienced agents who've navigated previous cycles)
Get Expert Guidance from Maco Realty Group
Do not navigate this complex market alone. Whether you are ready to buy at what may be near-bottom prices, need to sell strategically, or simply want to understand your options, Maco Realty Group is here to help.
We offer:
Free market analysis for your property or target area
Complimentary consultation to discuss your real estate goals
Customized strategies tailored to your specific situation
No-pressure guidance focused on your best interests
Contact Maco Realty Group Today
📞 Call us for immediate assistance📧 Email us for detailed information🏢 Visit our office to meet our team of Florida real estate experts
The Florida condominium market is at a turning point. With the right guidance, you can turn today's challenges into tomorrow's opportunities. Let Maco Realty Group be your trusted partner in navigating Florida's evolving real estate landscape.
Frequently Asked Questions
Q: Are all Florida condos losing value?
No. While the overall trend shows price declines, impact varies significantly by location, building age, and financial health. Newer buildings in stable markets are holding value better than older coastal properties.
Q: Should I wait to buy until prices drop further?
Timing the absolute bottom is impossible. Current data suggests we are approaching stabilization. With mortgage rates expected to decline, waiting could mean facing more competition and higher rates later.
Q: How do I know if a condominium building is financially sound?
Request HOA financial statements, reserve study reports, recent inspection reports, and information about pending special assessments. Maco Realty Group can help you interpret these documents.
Q: Are single-family homes a better investment than condos right now?
Single-family homes are performing better currently, but condos offer lower entry prices and may provide better appreciation potential once the market stabilizes. Your choice depends on budget, investment timeline, and lifestyle preferences.
Q: When is the best time to sell my condo?
If you can wait, spring 2026 may offer improved conditions with lower mortgage rates. If you need to sell now, competitive pricing and highlighting your building's strengths are essential. We can provide a customized selling strategy.
"This article was prepared by Maco Realty Group to help Florida residents and prospective buyers understand current market conditions. Market data is accurate as of October 2025 but conditions change rapidly. Contact us for the most current information specific to your area of interest."
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