All of the largest Florida city markets saw a decrease in condo median prices.
Condominium prices in Florida are starting to drop while more people are trying to sell their condos, according to a new report by Redfin real estate and mortgage services company.
Natural disasters, corresponding increases in home insurance prices along with homeowner association (HOA) fees are being blamed for the “faltering” market for condos in the Sunshine State, Redfin concluded.
“Prices of condos in major Florida metros are dropping year over year, and sales are declining. New condo listings are soaring as sellers try to offload their properties,” the Redfin report said.
Across the state, the median sale price for condominiums was $317,000, a decrease of 6.8% in a year-over-year comparison. Meanwhile, new listings for condo sales in Florida jumped by 28.2% in the last year.
All the largest city markets saw a decrease in condo median prices that ranged between a 1% price drop in Miami to a 6.5% decrease in price in Jacksonville, with Orlando, Tampa and Miami in between.
There were only two cities in the report that saw median condo prices increase in the past year. Cape Coral in Southwest Florida witnessed a 6.5% median condo price jump to $350,000. North Port, also in Southwest Florida between Sarasota and Port Charlotte, saw the median price of a condominium increase by 7.1%, to $375,000.
At the same time, the number of condos going up for sale has dramatically increased in the past year. The number of new listings of condos on the market shot up by 28.2% across Florida, the Redfin report said.
North Port had the highest increase of new listings for condos in the past year, at 33.7%, followed by Cape Coral at 32.6% and Jacksonville at 32.4%.
Redfin officials said the North Port and Cape Coral new listings increased because those markets were lagging for so many years and dropped to a low point right after Hurricane Ian ravaged Southwest Florida in 2022.
That natural disaster also was a major turning point for homeowners insurance in Florida, which was already beginning to cost more. The price of insuring a home shot up by 40% in 2023 alone, Redfin reported.
Correspondingly, HOA fees and maintenance fees at condominium complexes are also going up.
“Condo costs are shocking,” said Juan Castro, a Redfin agent in Orlando. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”
While the median price for condos in Florida are falling, Redfin acknowledged the prices were somewhat artificially high in a heated market and the current drop in price tags are still higher than what the cost of a condo was before the COVID-19 pandemic set in during 2020.
“Condos are sitting on the market much longer than they used to, with less interest from buyers,” said Jacksonville Redfin agent Heather Kruayai. “Sky-high HOA costs are pushing buyers out of their monthly budget.”
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