Redfin Reports Florida Has More Homes for Sale Than Ever Before

Rhea-AI Summary

Florida's housing market hit a record-high inventory of 172,209 homes in January 2024, marking a 22.7% increase year-over-year according to Redfin (NASDAQ: RDFN). The surge in available homes is attributed to multiple factors:

- Increased home construction activity
- Rising natural disaster concerns
- Skyrocketing insurance costs
- Escalating HOA fees
- Cooling buyer demand (pending sales down 9.3% YoY)

The condo market is particularly affected, reaching all-time high inventory levels due to new structural regulations driving up HOA fees. Eight Florida metros, predominantly coastal areas, reported record-high active listings, including Cape Coral, Deltona-Daytona Beach, and North Port-Sarasota. Real estate agents describe current conditions as a buyer's market, with sellers needing to offer concessions and ensure properties are in excellent condition to attract offers.

Positive

• Record-high inventory provides more options for homebuyers
• Buyer's market conditions favor property purchasers

Negative

• Pending home sales declined 9.3% year-over-year
• Properties staying on market longer, creating stale inventory
• Rising insurance costs and HOA fees deterring buyers
• Natural disaster risks affecting coastal property demand
• Some Florida markets experiencing price declines

Insights

Real Estate Market Analyst

Florida's housing market is experiencing an unprecedented supply glut, with inventory reaching a record 172,209 homes in January 2025, surging 22.7% year-over-year. This dramatic shift has transformed Florida into a buyer's market, ending years of seller advantage.

This inventory surge stems from a perfect storm of factors:

• Aggressive new construction outpacing absorption
• Plummeting buyer demand (9.3% drop in pending sales)
• Skyrocketing insurance costs due to climate risks
• Regulatory changes forcing expensive condo building upgrades
• Soaring HOA fees driving condo owners to sell

The condo market appears particularly vulnerable, hitting all-time inventory highs as owners flee escalating association fees. Geographic analysis reveals coastal areas bearing the brunt of this trend, with eight metropolitan areas reaching record-high active listings – five of which are coastal markets facing heightened climate risks.

For investors, this represents a significant market correction in what was previously one of America's hottest real estate markets. Price pressures are likely to intensify as sellers compete for a shrinking buyer pool. Homes now require immaculate presentation and competitive pricing just to attract attention, with Redfin agents reporting bidding wars have become "very rare."

This inventory surge contradicts the national housing narrative of persistent supply shortages, suggesting Florida's unique combination of climate vulnerability, regulatory changes, and overbuilding has created a localized correction that could persist until these underlying factors stabilize.

The number of homes on the market in the Sunshine State rose 23% year over year to a record high in January amid a decrease in homebuying, an influx of newly built homes for sale, intensifying natural disasters, and surging insurance costs and HOA fees.

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Florida ended January with 172,209 homes for sale—the highest inventory of any month on record, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s up 22.7% from a year earlier.

Inventory is a measure of the number of homes for sale on the last day of the month. Redfin’s records date back to 2012.

Florida has seen housing inventory surge because it has been building more homes than most states. It’s also grappling with intensifying natural disasters, which has caused home insurance costs to skyrocket and prompted some homeowners to leave the state. With so many options for buyers to choose from, a lot of homes for sale are sitting on the market for months at a time, causing stale inventory to pile up. Listings are also piling up because homebuyer demand has been cooling; pending home sales in Florida fell 9.3% year over year in January.

Florida’s slowing condo market is a major factor pushing up inventory in the Sunshine State, too. Condo inventory in Florida was at an all-time high in January. Meanwhile, inventory of single-family homes was just shy of its record high. Many condo owners are looking to sell because new regulations aimed at ensuring condo buildings are structurally sound have caused HOA fees to soar.

Active Listings Are at a Record High in 8 Florida Metros, Most of Which Are on the Coast

Active listings—another gauge of housing supply—are also near a record high in Florida. They rose 19.4% year over year in January to 212,437, which is slightly below the all-time high hit in 2019. Active listings are a measure of the total number of homes for sale during the month.

Active listings are at a record high in eight of Florida’s 31 metropolitan areas: Cape Coral, Deltona-Daytona Beach, Homosassa Springs, Lakeland, North Port-Sarasota, Ocala, Port St. Lucie and the Villages. Five out of eight of those metros are on the coast, where homeowners often face higher natural disaster risk, insurance costs and HOA fees.

Redfin agents in Florida say it’s a buyer’s market, meaning sellers may need to offer concessions to woo bidders, and should also make sure their homes are in tip-top shape. In some Florida markets, home prices are falling.

“Bidding wars are very rare these days,” said Bryan Carnaggio, a Redfin Premier real estate agent in Jacksonville. “With this many houses for sale, a home basically needs to look like it’s out of a magazine—and be priced fairly—to get multiple offers.”

Active listings are higher than a year ago in every Florida metro Redfin analyzed. But they’re not soaring everywhere. For example, they’re up less than 5% in Sebring, Panama City, Tallahassee and Okeechobee.

To view the full report, including a chart and Florida metro-level summary, please visit: https://www.redfin.com/news/florida-homes-for-sale-record-high

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227348084/en/

Contact Redfin

Redfin Journalist Services:

Isabelle Novak

press@redfin.com

Source: Redfin

FAQ

What caused Florida's housing inventory to reach record levels in January 2024?

Florida's inventory surge was driven by increased home construction, rising natural disaster risks, higher insurance costs, increasing HOA fees, and a 9.3% decline in homebuyer demand.

Which Florida metros reported record-high active listings in January 2024?

Eight metros hit record highs: Cape Coral, Deltona-Daytona Beach, Homosassa Springs, Lakeland, North Port-Sarasota, Ocala, Port St. Lucie and the Villages.

How much did Florida's housing inventory increase year-over-year in January 2024?

Florida's housing inventory rose 22.7% year-over-year to 172,209 homes in January 2024.

What is the current state of Florida's condo market according to Redfin's report?

Florida's condo market reached all-time high inventory levels due to new structural regulations causing increased HOA fees.

How are Florida home sellers adapting to the current market conditions?

Sellers must offer concessions and ensure properties are in excellent condition to attract buyers, as bidding wars have become rare in the current buyer's market.