Florida Housing Market Cools: Increased Inventory and Foreclosures Mark April 2025

In April 2025, Florida's housing market exhibited significant shifts, marked by increased inventory, declining median prices, and a surge in foreclosure rates. These developments suggest a cooling trend in a market that has experienced rapid growth in recent years.

Statewide, the inventory of single-family homes rose by 2.7% compared to April 2024, indicating a move toward a more balanced market. Closed sales of existing single-family homes totaled 23,572, a 4.5% decrease year-over-year. The median sale price for these homes was $412,734, reflecting a 4% decline from the previous year—the largest drop since 2011. Despite this decrease, prices remain significantly higher than pre-pandemic levels.

In the Tampa Bay area, 50% of home listings remained unsold for 60 days or more, surpassing the national average of 44%. This trend has contributed to declining home prices in the region. Michael Wyckoff, managing broker of Engel & Völkers Madeira Beach, noted, "People were getting used to making huge profits on their houses in a short period of time."

Florida led the nation in foreclosure starts in April 2025, with 2,810 filings, trailing only Texas. This increase is attributed to factors such as rising insurance premiums, post-hurricane debt, and elevated mortgage rates. Cities like Lakeland and Cape Coral experienced some of the highest foreclosure rates in the country, with one in every 1,674 housing units facing a foreclosure filing in May.

High mortgage rates, averaging around 6.75%, have deterred many prospective buyers, leading to decreased demand and increased inventory. Rising insurance premiums, particularly in hurricane-prone areas, have added to the overall expense of homeownership, influencing buyer decisions.

The surge in foreclosures indicates financial strain among homeowners, potentially leading to increased homelessness and economic instability. While increased inventory and easing prices may present opportunities, high mortgage rates and insurance costs continue to pose affordability challenges. A cooling housing market could impact related industries, including construction, real estate services, and local businesses dependent on housing market activity.

The current decline in median sale prices is the most significant since 2011, suggesting a notable market correction. However, prices remain above pre-pandemic levels, indicating that the market is adjusting rather than collapsing.

As Florida's housing market continues to evolve, stakeholders will need to navigate these changes carefully, balancing the challenges of affordability and financial stability with the opportunities presented by increased inventory and easing prices.