The housing market is still imbalanced, with more buyers ready to settle than there are sellers ready to leave. While Florida’s housing market has taken a few hits, particularly lately, the state’s housing market is still among some of the strongest in the country. With its population growth, sunny beaches, and warm climate being contributing factors to the high demand for homes in the Sunshine State, real estate experts are saying sellers can benefit from putting their properties on the market in 2025.
Not Without Some Risks
While Florida’s housing market may be fairing better than other states in the country, there are still some risks to selling your home. According to a recent analysis by Parci Labs, Florida is ranked at the top of the “at-risk” housing market, with the analysis referring to Florida as the “epicenter of supply and demand imbalances” that could result in home price corrections. Other research from Redfin reported that in October of this year, the number of homes sold in the state dropped 10.2 percent from the previous year, likely hurt by the severe weather.
Yet, despite potential risks, there are still many promising signs for Florida home sellers as the new year approaches. One encouraging sign that many experts are suggesting is the pent-up demand following the 2024 election, which had many homebuyers sitting on the sidelines.
“Statistics show the new year [following an election] signals a boost in real estate and buyer confidence,” Megan Probst, real estate agent with Compass, told GOBankingRates (GBR). “This results in a more balanced market overall,” she added.
Similar to Probst’s view, senior global real estate advisor at Kourtney Pulitzer Properties with Sotheby’s International Realty, Kourtney Pulitzer, explained, “Many buyers remained on hold in 2023 and 2024 waiting on rates to come down or for the economy to improve… 2025 provides election clarity, which many buyers were waiting on, and a strong confidence that our economy will improve. These two factors will give consumers enough confidence to start writing contracts.”
Florida Housing Still in High Demand
Pulitzer also shared expectations to see price tags increase as more buyers enter the market and compete for homes. Many of these buyers arriving from other states—particularly the Northeast and Midwest—due to Florida’s tax perks, sunny skies, and “laid-back lifestyle,” according to Keith McCoy, co-owner and co-founder at Midtown Homebuyers.
“Remote workers and retirees looking for warmer weather are driving demand, too, especially in spots near the beach with affordable homes,” McCoy stated. “Places like Tampa, Orlando, and Pensacola are hot markets with job growth and plenty of things to do. Prices in these areas should hold steady or even climb a little since so many people are ready to buy. Just keep an eye on rising insurance costs and how climate issues might affect property values.”
The demand in the condo and townhouse market should be kept in view, with this market becoming flooded with inventory in some cities in Florida.
According to owner and broker at Echo Fine Properties, Jeff Lichtenstein explained that “until inventory subsides, the ‘must seller’ will be setting the market… Condos and townhouses have had a 75% jump in inventory. While prices have remained stable, the inventory is still growing.”
Lichtenstein added that the single-family home market should be more stable due to higher buyer demand and fewer options. However, if condo owners have a hard time selling, then there could be a “ripple effect,” impacting the amount of buyers looking to purchase single-family homes.
Overall, Florida real estate experts forecast sunny days for the market for sellers in the new year. Probst said, “I expect buyers who have been on hold to resume their home searches and sellers who were reluctant to enter the market [will enter it] in 2025.”
