SKN | Florida Home Sales Extend 10-Month Growth Streak as Buyers Adjust to Higher Mortgage Rates

Florida’s residential real estate market continued its steady recovery in June, extending a ten-month streak of annual sales growth as buyers demonstrated increasing confidence despite mortgage rates remaining well above the historic lows seen during the pandemic. According to Florida Realtors®, stronger closed sales, rising pending transactions, and resilient home prices suggest the state’s housing market is transitioning toward a more balanced and sustainable environment.

Although affordability remains a challenge, buyers appear increasingly willing to move forward with purchases rather than waiting for substantial declines in mortgage rates.

The Assumption: Buyers Will Wait Until Mortgage Rates Fall

For much of the past two years, many prospective homebuyers delayed purchasing decisions in anticipation of lower borrowing costs.

Recent market activity indicates that behavior is changing. With mortgage rates stabilizing around 6.5%, many households have adjusted their expectations and are proceeding with purchases as they recognize that significantly lower rates may not return in the near term.

Florida Realtors President Chuck Bonfiglio Jr. noted that while market conditions vary by location and property type, today’s buyers have more opportunities to negotiate and greater inventory from which to choose, while sellers must place increased emphasis on realistic pricing and property presentation.

The Economic Breakdown: Sales Continue Recovering Across Property Types

Florida Realtors reported that statewide existing single-family home sales totaled 26,036 in June, representing a 9.3% increase compared with June 2025. Existing condo and townhouse sales reached 8,900, rising 14% year over year.

Second-quarter results also reflected continued improvement. Existing single-family home sales reached 75,080, up 4.1% from the same quarter a year earlier, while condo-townhouse transactions increased to 27,101, representing 9% annual growth.

Median prices continued to demonstrate resilience. Existing single-family homes recorded a statewide median sales price of $432,000 in June, an increase of 4.9% from one year earlier. Condo-townhouse properties posted a median price of $305,000, up 1.7%.

For the second quarter, the median single-family home price reached $425,000, increasing 2.4% year over year, while condominium and townhouse prices remained stable at $310,000, suggesting price appreciation has moderated without significant declines.

The Hidden Picture: Inventory Creates Two Distinct Housing Markets

One of the most important developments lies in the growing difference between Florida’s single-family and condominium markets.

Existing single-family homes carried approximately 4.5 months of inventory during both June and the second quarter, a level approaching a balanced market while still offering sellers relatively favorable conditions.

Condominiums and townhouses, however, maintained an 8.1-month supply, providing buyers with substantially greater selection and stronger negotiating leverage. Increased condominium inventory may reflect several factors, including higher homeowner association costs, insurance expenses, and changing buyer preferences in certain coastal markets.

Florida Realtors’ Director of Economic Development and Commercial Research, Jennifer Warner, also cautioned that this year’s strong percentage gains should be interpreted within the context of an unusually weak comparison period. During the spring of 2025, mortgage rates approached 7%, suppressing buyer activity and creating a relatively low baseline for annual comparisons.

Warner noted that current transaction levels more closely resemble the healthier market conditions experienced during 2023, indicating that buyers have largely adapted to today’s financing environment.

Mortgage professionals are observing similar trends. Rather than delaying purchases indefinitely, many buyers have adjusted expectations and developed greater confidence navigating higher interest rates while taking advantage of improved housing selection.

Market Balance Continues to Improve

Florida’s housing market increasingly reflects a healthier equilibrium between buyers and sellers.

Growing inventory has reduced some of the competitive pressures that defined the pandemic-era housing boom, allowing buyers additional time to evaluate properties and negotiate purchase terms. Meanwhile, sellers continue benefiting from home values that remain near historic highs, although success increasingly depends on accurate pricing and property preparation.

This evolving environment suggests the market is shifting away from extreme conditions toward a more sustainable pace characterized by moderate appreciation, improving inventory, and steady transaction activity.

Market Outlook

Florida enters the second half of 2026 with continued momentum. Buyers appear increasingly comfortable operating within the current interest-rate environment, while expanding inventory provides greater opportunities across many local markets.

Although affordability challenges remain, particularly for first-time buyers, stable home prices, resilient demand, and improving inventory position Florida’s housing market for continued activity if mortgage rates remain relatively steady during the remainder of the year.

As Florida buyers continue adapting to mortgage rates near 6.5% and housing inventory gradually expands, will improving affordability through greater supply be enough to sustain the state’s housing recovery, or will elevated financing costs eventually limit future demand?