Florida’s condo market is in the doldrums, in a troubling sign for the Sunshine State’s housing market after years of booming sales.
In January, condo sales were down 6.8 percent statewide in Florida from a year ago, with pending sales down 3.5 percent on the year, according to data from brokerage firm Redfin.
In most of Florida’s major markets, condo sales are down despite falling prices, in contrast to the rest of the US, where prices are rising and sales are holding steady.
In Miami, for example, condo prices fell 3 percent in January from a year ago, sales dropped 9 percent and new listings rose 27 percent, according to Redfin.
And in Jacksonville metro, the median condo price declined roughly 7 percent, sales declined 27 percent, and new listings increased 32 percent.
In January, condo sales were down 6.8 percent statewide in Florida from a year ago, according to data from brokerage firm Redfin. Of the major markets only Orlando saw a bump in sales
Florida’s condo market is in the doldrums, in a troubling sign for the Sunshine State’s housing market after years of booming sales. Pictured: Condos in Miami Beach
Experts say the soaring cost of insurance in Florida, along with rising monthly condo fees, are reducing demand from buyers by making condos more expensive to own.
According to the Insurance Information Institute, homeowner’s insurance in Florida has jumped 102 percent in the last three years, and costs three times more than the national average.
Last year the average cost of home insurance in the Sunshine State was about $6,000, the highest average premium in the US, according to figures from the group cited by WTVT-TV.
Earlier this week, finance guru Suze Orman told DailyMail.com that she had given up insurance coverage on her own 2,100-square-foot, ocean-side condo in Florida after she was quoted annual premiums topping $28,000 a year.
Florida’s susceptibility to devastating hurricanes, as well as a high fraud rate in the state, are factors driving the increase in insurance premiums.
Condo fees in Florida have also jumped due to new regulations following the 2021 Surfside condo collapse, which require condo associations to maintain bigger reserve funds for maintenance and repairs.
‘Condo costs are shocking,’ Juan Castro, a Redfin Premier agent in Orlando, told Redfin.
‘Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.’
Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors, told Newsweek that higher costs are giving potential buyers pause.
‘The higher condo association fees are an added burden for condo owners, which also deters buyers—unless the price falls enough to compensate for the ongoing, higher monthly condo association fees,’ he told Newsweek.
Condos are seen in Palm Beach, Florida. Condo sales in Florida are in a slump, defying a national trend of rising prices and steady sales
Aftermath is seen in Horseshoe Beach, Florida – which Hurricane Idalia reduced to rubble in August 2023. Severe weather has affected insurance premiums in the state
However, Yun remained positive about Florida’s housing market in the long run.
‘We must determine whether this trend [lower sales] is sustained or just a short run, because Florida has one of the fastest job creation and population additions among all states,’ he said.
‘More people mean more housing demand eventually, even though the short-term timing of the purchase may be influenced by mortgage rates.’
Florida experienced a housing market frenzy during the pandemic, when it experienced an influx of newcomers moving from other states.
Prices boomed until the market began to cool last summer, as higher mortgage rates impacted demand.
Florida’s market for single-family homes is faring better that the condo market, according to Redfin.
In Miami, for example, the median sale price of single-family homes increased by double digits from a year earlier in January.
Sales rose 9 percent and new listings increased 13 percent in the Miami market, according to Redfin.