Florida's condo market looks shaky. Could the bottom fall out?

Published On Sep 8, 2024, 9:30 AM

The Florida condo market is in a correction phase, with median sales prices decreasing 1.3% year-over-year as of July, marking the first decline since 2020. A number of factors are contributing to this downturn, including rising insurance costs, high mortgage rates, and new stringent maintenance regulations triggered by the 2021 Surfside condominium collapse. The number of active condo listings has nearly doubled compared to a year ago, further pressuring prices. However, experts suggest that a large-scale market crash, akin to the one in the early 2000s, is unlikely due to overall retained equity; most homeowners still have significant value in their properties compared to where they were four years ago.