According to the latest data from Dr. Brad O’Connor, Chief Economist at Florida Realtors, home sales declined in May 2025. Single-family home sales are down by 6%, while condos and townhouses saw a sharper drop of 20%.
Single-family homes: price drop, but not everywhere
For the third consecutive month, prices in this category continued to fall, decreasing 3% in May 2025. The median price now stands at $415,000, though this figure hides significant variation between counties. As noted last month, prices remain stable or rising in 9 out of 22 Florida metropolitan areas. They’re still close to 2022 levels—and 54% higher than they were in May 2020.
Condos & townhouses: declining prices
Since July 2024, prices have been dropping across much of Florida, with decreases seen in 19 out of 22 metro areas. The median price is now $310,000, down 6% from May 2024—but still similarly 54% higher than May 2020.
High inventory, but no cause for alarm
Inventory levels have been above those seen during the stable 2014–2019 period, gradually rising since 2022 due to increasing interest rates.
Dr. O’Connor remains reassuring: “[Current inventory levels] remain well below the levels we were seeing in 2008 when we experienced a large price correction during the Great Financial Crisis, which is why right now we are only seeing some minor price erosion by comparison.”
May inventory stabilizes
Interestingly, inventory barely increased in May 2025, with just a +0.1% rise for single-family homes. It even dropped by 2.5% for condos and townhouses compared to April.
Pending sales also fell in May (–0.7% for single-family homes and –10% for condos/townhouses), which should have pushed inventory up—yet it didn’t.
Why? A drop in new listings
New single-family home listings fell in May—rare for Florida outside of hurricane season.
Dr. O’Connor explains: the data shows that “new listings were elevated in the first four months of 2025, but they fell back into their typical range in May. And over in the condo and townhouse category, the decline in new listings was even more significant, at close to 10%.”
He adds that this slowdown is partly seasonal, as similar patterns occur annually post-peak season—though not usually with such intensity and not for single-family homes.
Are we heading toward a lukewarm market with fewer sales, slightly falling prices, and a tighter inventory? Time will tell. In the coming months, it’ll be important to keep a close eye on housing stock and new residential listings.
