With high borrowing rates and cost of living, the real estate market slowed down in 2025. Signs of a recovery are emerging, thanks in particular to lower mortgage rates, with the third reduction since September of 0.25% announced by Jerome Powell, Chairman of the US Federal Reserve, on December 10.
The Florida market has been affected by the global economic slowdown, with world gross domestic product (GDP) growing by +2.9% compared to 3% previously, according to the IMF (International Monetary Fund), trade tensions, and latent uncertainty; but also by its own issues related to the high cost of home insurance (on average $3,000 more than the US national average), property taxes, and high prices.
In Florida, inventory has continued to increase, albeit at a slower pace than in 2024, mainly because properties are taking longer to sell, not because there are more properties for sale. In fact, sellers are quick to take their properties off the market if they can’t get the price they want: South Florida (Palm Beach, Miami-Dade, and Broward counties) is the leading market in the country in terms of the number of delistings, according to a report by Dave Magua, a real estate broker with Keyes.
International market
It represents only 5% of the Florida real estate market. It is dominated by Latin America and the Caribbean (45% of sales from August 2024 to July 2025, according to a study by Florida Realtors); Europeans and Canadians come in second at 18% each.
According to this study of 4,907 Florida agents, including 978 who have done business with international clients, the number of international sales is estimated to have increased by +50% for this period, with a volume of $10.4 billion compared to $7.1 billion the previous year. This is still less than the peak in 2020 ($15.6 billion).
Purchases are concentrated in South Florida (45%). Only 6% of purchases were in the Naples-Immokalee-Marco Island metropolitan area, but 52% of these buyers were Canadian.
International buyers purchase properties that are 12.5% more expensive than the median price in Florida. Purchases are mainly in the $250,000–$500,000 range (39%), but properties under $150,000 have seen the largest increase. The median purchase price for international buyers is $442,000, down $27,000 from the previous period.
Canadians accounted for by far the largest international financial volume in the 2025 survey. In total, Canadian investment volume in 2025 amounted to approximately $1.9 billion, an increase of 52% over 2024.
Beware of sales contract cancellations
Even when you think the deal is done, it’s important to remain cautious: sales contract cancellations are on the rise, at 15.1% in November compared to 14.3% in October. According to Redfin, in the Fort Lauderdale area, one in five contracts falls through (20%). In Miami, the figure is 17.6%; 19.1% in Orlando; and 19.2% in Jacksonville and Tampa. Competition from new properties is having an impact on older properties, as is awareness of insurance costs and high HOA fees. Interest rate volatility is also a factor.
