Florida’s housing market moderated through much of 2025 as elevated mortgage rates, affordability constraints, and higher ownership costs slowed buyer activity. However, recent data suggests conditions may be moving toward stabilization as mortgage rates begin to ease and international buyer activity improves.
According to the Florida Realtors® 2025 Profile of International Residential Transactions, combined with global economic data from the International Monetary Fund (IMF), Florida’s housing market is transitioning from rapid post-pandemic growth into a more balanced phase.
For homebuyers and investors, understanding these trends is essential when planning a purchase or financing strategy.
Why the Market Slowed in 2025
Several factors contributed to reduced transaction volume:
- Elevated mortgage interest rates through much of the year
- Increased property insurance premiums
- Higher property taxes in some counties
- Home prices remaining above pre-2020 levels
- Slower global economic growth
Inventory levels increased primarily because homes spent more time on the market — not because of excessive new supply. In most regions, inventory levels are above pre-pandemic norms but not at levels that typically trigger significant statewide price declines.
Mortgage Rates and Buyer Activity
As mortgage rates began easing later in 2025, early indicators show improvement in buyer engagement.
Lower rates can:
- Improve purchasing power
- Reduce monthly payment obligations
- Enhance loan qualification flexibility
- Support refinance or rate-adjustment strategies
While affordability remains a key consideration, improving financing conditions may support gradual market normalization.
International Buyer Activity Rebounds
International transactions increased significantly between August 2024 and July 2025:
- Residential purchases rose approximately 51% year-over-year
- Dollar volume increased to $10.4 billion, up from $7.1 billion in 2024
- International buyers accounted for 5% of Florida’s total existing home sales
Buyer origins:
- Latin America & Caribbean – 45%
- Europe – 18%
- Canada – 18%
South Florida continues to attract the highest share of international buyers, followed by Orlando, Tampa Bay, and Southwest Florida.
Although activity remains below 2020 peak levels, the increase suggests renewed international interest in Florida real estate.
Home Prices: Moderation, Not Correction
During the 2025 survey period:
- Median price among international buyers: $442,000
- Down from $469,000 in 2024
- Approximately 12.5% above the statewide median price
Price adjustments have generally occurred in markets where resale homes compete with substantial new construction inventory.
Statewide data reflects moderation rather than broad depreciation.
Population and Economic Fundamentals
Domestic migration into Florida has cooled from its 2022 peak but remains stronger than pre-pandemic levels. The state continues to benefit from:
- Long-term population growth
- Business relocations
- Tourism recovery
- Ongoing international demand
According to the IMF, global GDP growth slowed from 3.0% in 2023 to 2.9% in 2024 and is expected to remain near that pace. Slower global growth has influenced capital movement and buyer behavior but has not materially disrupted Florida’s long-term housing demand fundamentals.
What This Means for Florida Buyers
Current market conditions reflect greater balance compared to recent years.
Buyers may experience:
- Increased inventory options
- Extended negotiation timelines
- Potential seller concessions in certain markets
- Reduced competitive bidding environments
However, financing structure remains critical. Total housing cost — including insurance, taxes, HOA dues, and interest rate structure — should be evaluated alongside purchase price.
Planning to Buy in Florida?
Whether you are purchasing a primary residence, second home, or investment property, market timing matters less than financing structure and long-term strategy.
As a Florida Loan Officer, I help buyers:
- Compare conventional, jumbo, FHA, VA, and non-QM options
- Evaluate rate-buydown strategies
- Structure loans for self-employed borrowers
- Analyze payment scenarios under different interest rate environments
- Prepare fully underwritten pre-approvals to strengthen offers
If you are considering buying in Florida in 2026 — or refinancing to improve your position — let’s review your options.
Request a personalized mortgage strategy consultation today.
Pre-qualification is available with no upfront obligation.
Contact our team to explore competitive Florida mortgage rates, customized loan programs, and strategic financing solutions tailored to your goals.
