SKN | Florida Condo Sales Are Rising Again, But Is the Recovery Stronger Than the Headlines Suggest?

Florida condo and townhome sales increased 6.6% year-over-year in May, while pending sales rose 9%, signaling continued buyer activity.

Median prices declined by just 1%, suggesting a market that is stabilizing rather than accelerating.

Despite improving sales figures, buyers continue to face structural challenges including insurance costs, HOA expenses, reserve requirements, and financing restrictions.

Florida’s condominium market has spent much of the past two years adjusting to higher interest rates, stricter building regulations, and affordability pressures. New data from Florida Realtors suggests the sector may be finding firmer footing, with both closed sales and pending transactions showing year-over-year growth.

At first glance, the numbers appear encouraging. However, a closer examination reveals a market that is recovering in volume while still facing significant structural headwinds that continue to influence pricing and buyer behavior.

The Dominant Narrative: Buyers Are Returning

The headline figures point to renewed momentum.

Closed condo and townhome sales rose 6.6% year-over-year in May, reaching 8,897 transactions. More importantly, pending sales increased by 9%, a leading indicator that suggests future closings may continue to improve over the coming months.

From this perspective, Florida’s condominium sector appears to be regaining strength after a prolonged period of uncertainty. Supporters of this view argue that buyers are adjusting to higher interest rates and gradually returning to the market.

Yet transaction growth alone does not necessarily indicate a stronger market.

Looking Beyond the Sales Numbers

The broader context is more nuanced.

While sales increased, prices remained largely stagnant. The median condo and townhome sale price fell by 1% year-over-year to approximately $307,000. Although the decline is modest, it indicates that stronger transaction activity is not yet translating into meaningful price appreciation.

At the same time, homes are taking longer to sell. Median time to contract increased from 61 days to 64 days, while median time to sale rose from 98 days to 103 days.

These figures suggest that buyers have gained additional negotiating power and are taking more time to evaluate purchases than during the highly competitive pandemic-era market.

The Hidden Costs Driving Buyer Decisions

The condominium market cannot be understood through sales data alone.

Across Florida, ownership costs have become increasingly influenced by factors beyond mortgage payments. Insurance premiums continue to rise in many coastal markets. Homeowners association fees have increased as buildings address higher operating expenses. Reserve funding requirements introduced after the Surfside condominium collapse have forced many associations to collect larger assessments and strengthen maintenance budgets.

These costs directly affect affordability.

A condominium that appears attractively priced may carry monthly expenses that significantly alter the economics of ownership. As a result, buyers are increasingly evaluating total ownership costs rather than focusing exclusively on purchase prices.

Inventory Is Falling, But Supply Remains Elevated

Inventory conditions also deserve closer examination.

Active listings declined by 13.4% year-over-year, while months of supply fell from 10.3 months to 8.6 months. This represents a meaningful reduction in available inventory.

However, an 8.6-month supply still exceeds the range typically associated with a balanced market. By traditional standards, Florida’s condominium sector remains closer to buyer-market territory than seller-market conditions.

This helps explain why transaction activity can rise while prices remain relatively stable.

Financing Remains a Critical Variable

Another underappreciated factor is financing access.

Many Florida condominium buildings continue to face stricter lending standards. Buyers must navigate association financial reviews, reserve requirements, insurance considerations, and evolving lending guidelines from major mortgage providers.

For cash buyers, these issues may be less significant. For financed buyers, however, building-level financial health increasingly influences purchasing decisions.

The result is a market where individual properties are being evaluated not only on location and price but also on the financial condition of the condominium association itself.

A Market Returning to Normality

The recent increase in sales activity suggests that Florida’s condo market is not collapsing, despite years of warnings about higher rates and regulatory changes.

At the same time, the market is operating under very different conditions than those that fueled rapid price growth between 2020 and 2022. Buyers are more selective, ownership costs are higher, financing is more complex, and inventory remains relatively abundant.

If sales continue to rise while prices remain flat and ownership costs continue climbing, is the condominium market actually becoming stronger—or simply becoming more efficient at finding the price level buyers are willing to accept?