Florida Condo Market Faces 6.8% Decline in January Sales Amidst Rising Home Insurance and Condo Fees

Recent data from brokerage firm Redfin reveals a concerning downturn in Florida’s condo market, with sales dropping 6.8% statewide in January compared to the previous year.

Despite decreasing condo prices, major markets in Florida witness declining sales, contrasting with the national trend.

Insurance Costs and Condo Fees Blamed for Sales Slump

Experts attribute the sales slump to the soaring costs of homeowner’s insurance and rising monthly condo fees in Florida.

The Insurance Information Institute reports a 102% increase in homeowner’s insurance in the state over the last three years, with premiums three times the national average.

High insurance costs and increased condo fees, driven by new regulations post the 2021 Surfside condo collapse, contribute to reduced demand.

Financial Guru Suze Orman’s Decision Highlights Escalating Insurance Costs

Renowned finance expert Suze Orman disclosed giving up insurance coverage on her Florida condo due to exorbitant annual premiums exceeding $28,000.

Florida’s vulnerability to hurricanes and a high fraud rate contribute to the significant rise in insurance premiums.

Positive Outlook Amidst Challenges

Despite the current challenges, experts like Lawrence Yun from the National Association of Realtors remain optimistic about Florida’s housing market in the long run.

Yun acknowledges the impact of higher costs on buyers but emphasizes Florida’s rapid job creation and population growth, anticipating increased housing demand in the future.

Contrasting Fortunes: Single-Family Homes Outperform Condos

While the condo market faces a decline, Redfin reports that Florida’s single-family home market is faring better.

In Miami, the median sale price of single-family homes experienced double-digit growth in January compared to the previous year, with sales rising by 9% and new listings increasing by 13%.

Recap of Florida’s Housing Market Journey

Florida witnessed a housing market frenzy during the pandemic, attracting newcomers from other states.

However, the market cooled last summer due to higher mortgage rates. Despite the current challenges in the condo market, experts foresee potential growth driven by the state’s job creation and population expansion.

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