Florida’s housing market concluded 2025 on a positive note, exhibiting stabilizing median prices and a return to normal inventory patterns. After a mid-year shift, driven by falling mortgage rates and slowing insurance premium growth, sales saw a notable response. The market is now entering 2026 on firmer ground, with economists predicting a more balanced and opportunity-rich phase.
Key Takeaways
- Single-family home sales increased by 0.9% year-over-year in 2025, while condo and townhouse sales saw a 5.9% decline.
- Median sales prices stabilized, with single-family homes at $413,990 and condos/townhouses at $310,000 by year-end 2025.
- Mortgage rates eased from an average near 6.8% to about 6.2% by late 2025, unlocking pent-up buyer demand.
- National forecasts predict a 14% rise in existing-home sales for 2026, with Florida expected to benefit significantly.
- Property insurance market reforms are showing positive effects, with new insurers entering the state and premium growth slowing.
Market Performance in 2025
As 2025 drew to a close, Florida’s housing market demonstrated positive momentum. Closed sales of existing single-family homes rose by 0.9% compared to the previous year, totaling 255,012 units. However, existing condo and townhouse sales experienced a downturn, with 88,793 units sold, a 5.9% decrease year-over-year. This trend was influenced by safety regulations and reserve requirements introduced in 2022 for condo buildings. Despite these challenges, December 2025 saw a strong rebound in condo and townhome sales, up 10.4% year-over-year.
The statewide median sales price for existing single-family homes ended the year at $413,990, a slight decrease of 1.4% from 2024. Similarly, the median price for condo-townhouse properties dipped by 4.7% to $310,000. Inventory levels for single-family homes reached a 4.6-month supply, while condos and townhouses had an 8.8-month supply, indicating a return to more normal seasonal patterns.
Factors Driving the 2026 Outlook
Economists anticipate a more balanced market in 2026, largely due to easing mortgage rates. Rates fell from an average of nearly 6.8% in early 2025 to around 6.2% by year-end, a decline significant enough to re-engage sidelined buyers. National Association of Realtors forecasts suggest a 14% increase in existing-home sales nationwide for 2026, with Florida poised for substantial gains. A drop in mortgage rates from 7% to 6% could add thousands of new buyers to markets like Orlando alone.
Florida’s strong population growth, job creation, and continued migration from other states and countries remain key drivers of housing demand. The property insurance market is also showing signs of improvement following reforms, with new insurers entering the state and a slowdown in premium growth.
Shifting Buyer Demographics and Trends
Demographic shifts are reshaping the market. First-time homebuyers now represent 21% of purchases nationally, with a median age of 40. Cash buyers constitute nearly one-third of all transactions, particularly in competitive coastal and metro areas. The use of real estate agents remains high, with 88% of buyers and 91% of sellers utilizing their services.
Looking ahead, economists are cautiously optimistic about 2026. They foresee continued improvement in sales numbers, potentially with slightly positive home price growth if rates further decrease to around 6%. While affordability remains a challenge, especially for first-time buyers, the overall market is normalizing, creating opportunities for consumers and real estate professionals alike.
Sources
- Fla.’s 2025 Housing Market Ends on Positive Trends, | Florida Realtors.
- 2026 Real Estate Trends: Fla. Housing Market Stabilizing as Buyer Demand Builds, | Florida Realtors.
- Florida Housing Enters 2026 on Firmer Ground, | Florida Realtors.
- Florida residential real estate trends to watch in 2026, Tallahassee Democrat.
- 2025 Florida Market Cools, Early Rebound Emerging, | Florida Realtors.