April 7, 2025
by Cole Gargaro

PRICE DECREASES IN
SOUTH FLORIDA CONTINUE TO RISE - 2025

The South Florida real estate market is feeling more pain as the market continues to slow, particularly with condos. Although other parts of the country are experiencing some of these same pain points, buying and selling in Florida is more challenging due to certain circumstantial factors, resulting in a noticeable rise in price adjustments across the region.

Condo sales have especially declined due to the ongoing insurance crisis and rising association fees or special assessments tied to stricter regulations following the Champlain Tower Collapse in Surfside. Add in higher interest rates, and the challenges have grown.

As of December 31, 2024, Florida law now requires both operating expenses and reserves for capital expenditures and deferred maintenance to be included in a condo’s annual budget. Operating expenses cover day-to-day upkeep, while reserves fund major repairs like roofs. Previously, owners could vote to waive reserves—common practice that kept costs down but left many condos underfunded. Now, with mandatory reserves, special assessments, and rising cost of insurance, owning a condo is far more expensive. As of late, Home Owners Association (HOA) dues often rival or exceed mortgage payments, then factor in higher interest rates, and taxes—though some potential tax relief may be on the horizon-and condo ownership is almost out of reach for some.

Market adversity is showing up clearly: inventory of both single families and condos is rising due to an uptick in listings, while pending and closed sales are dropping. This creates a cycle that floods the market with homes for sale, shifting competition to sellers, unlike the post-COVID boom, where buyers were in bidding wars, waiving contingencies, and offering over asking. As shown in the chart below, February 2025 saw the highest percentage of active listings with price adjustments than in the past six years.

Listings with Price Adjustments Per Month

You can see how price reductions per month were at a standstill during the frenzied post-covid market, as the economy was flooded with money, people could work from anywhere, and Florida had the highest in-migration of all states 2022. 2024 started to exhibit an increase in sellers adjusting their prices and it’s still rising in 2025 due to challenges that the Florida market is facing. Buyers don’t have it very easy, and due to the rising costs of everything, sellers need to meet buyers where they are at.

Listings

The number of new active single families on the market started the year at a level above the past four years, only lower than 2019 and 2020, and condos were neck and neck with 2024 which was higher than five years prior. As the market has proven that selling takes a bit longer, some have hesitated to list and 2025 has since seen a decline in new listings.

Number of New Listings per Month for Single Families + Condos

See these Updated Graphs in real time – Lamacchia Realty South Florida Real Estate Updates Homes listed Monthly

Time on Market

The time it takes for a home to sell has naturally begun to take longer due to the increase in options and the affordability crunch for buyers. The higher the number of days between newly listed and accepted contract, the more likely it is for a price to need a decrease to attract more buyers. In real estate, if you sell fast, you often sell for more money.

Median Days on Market for Single Families and Condos

Though single families and condos are following a similar upward trend with longer days on market, the median time to contract for condos has risen to nearly 70 days compared to under 50 days for singles. Both categories were at the same level in 2022 during the market frenzy and then again in March of 2023 when the market began to adjust, however since then the time it takes for a listing to get a contract accepted has taken much longer for condos. This happens because of pricing. When the market is in this state, you should price on the low side or even below all of your competition to get the activity needed, but most sellers don’t. Then they list for sale and when it doesn’t sell, they then drop the price over time. This is why the number of days of market rises.

Pending Sales (Contracts Accepted)

The number of homes that went pending (contract accepted) in 2025 so far is lower than it has been since 2019, and subsequently so are the number of closed sales. Pending sales are a key indicator of the number of closings the following month or two, due to the time between an accepted contract and the closing table. Florida condos and singles are both the lowest they’ve been year over year since 2019 for pending sales. As closed sales follow pending sales, this is the predominant reason why inventory is rising.

Number of Pending Sales per Month for Single Families + Condos

In the charts above you can see that 2025 has the lowest number of pending sales (accepted contracts) since 2019.

See these Updated Graphs in real time – Lamacchia Realty South Florida Real Estate Updates Homes Pending Monthly

Closed Sales

Number of Closed Sales per Month for Single Families + Condos

The charts above indicate that sales are also quite low. For condos, they’re the lowest in well over six years, and though single-family sales are low, they’re on par with the past two years.

With pending sales and closed sales showing significant declines at the same time that listings are rising, inventory is bound to spike which will create more pressure on sellers to attract buyers and will make the South Florida market a clear buyer’s market once again.

See these Updated Graphs in real time – Lamacchia Realty South Florida Real Estate Updates Homes Sold Monthly

Inventory

Overall, with single families and condos combined in South Florida, 2025 inventory started at the highest level in years. If you break it down, you’ll see below that condo inventory is rising at a much higher rate than single families.

Active Inventory Monthly for Single Families + Condos

See these Updated Graphs in real time – Lamacchia Realty South Florida Real Estate Updates Active Inventory Monthly

Pricing Correctly is Humbling Nowadays

An experienced REALTOR® will emphasize from the start that pricing correctly is key to selling quickly and for top dollar. But even with all available data, pinpointing the right price can be challenging—especially in a shifting market like we’ve seen since the start of the year.

When initially pricing your home for sale in a market like this you should price BELOW all of the other comparable properties that are listed for sale. If you price like them, you will be like them and not sell. As well, when considering comps, it’s important to compare whether they’re in a similar situation with pending assessments as your association is, as this will impact buyer affordability.

Once you are listed, if your home is not selling, here are some signs that you need to adjust your price:

How do you know your house or condo is overpriced?

Priced Above Similar Homes in Your Area
Your list price cannot be the same as your neighbors in a market like this, it must be lower.
Low Showing Activity
A lack of showings, no showings, or a low turnout at open houses may mean it’s time to lower the price.
No Offers in the First Few Weeks
Homes and condos are almost always sold within the first few weeks of being listed or the first few weeks after a price adjustment. If no solid offers come in within the first two weeks, it’s often a sign the price is off. After three weeks without serious interest, it’s smart to revisit pricing with your REALTOR®.
Your Agent Suggested the Highest Price
Picking the agent who quoted the highest listing price is/was a mistake. In a market like this a good agent knows that’s the wrong strategy and will achieve less in the end.

Get Your Price on Target

If you’re wondering whether a price adjustment is needed, it probably is. Waiting only delays renewed buyer activity, showings, and potential offers. It will also cost you.

Since 2005, Lamacchia Realty has used market data to fine-tune pricing strategies, launching the Lamacchia Realty Target Pricing Model in 2007.

The graphic below helps determine the right price reduction. If your home is in the “bullseye,” it’s priced right and drawing strong offers. If not, the chart suggests how much to adjust to meet market demand.

If your home is receiving showings but no offers, somewhere between a 3-5% adjustment should be made.
If you’re receiving a small number of showings and only some drive-ups, you probably need somewhere between a 6-11% adjustment.
Not getting any showings is a red flag that at least a 12% adjustment is necessary. When this happens, sellers are usually the most hesitant to adjust because they cannot believe no one has even come out to see their home, so lowering the price can be hard to accept.

Consider the Price Bracket

Along with comps and the Target Pricing Model, price brackets are a smart tool when adjusting your home’s price. Dropping to the next bracket can expose your home to a whole new pool of buyers searching within that range.

Most real estate websites use bracketed price filters. For example, a home is listed at $775,000 it will appear to buyers searching in the $700K–$800K range, but not to those capped at $750K.

If you’re listed at $750,000 and drop 5%, you land at $715,000. But dropping to $700,000 instead places your home in both the $600-$700,000 and $700-$800,000 brackets, which puts dramatically more eyes on your home. That wider reach could lead to multiple offers, which we have seen even in slow markets like this.

When you change a listing price in MLS, agents and interested buyers with saved searches get notified. It’s a powerful way to reignite interest in a slow-moving listing.

Final Thoughts

Sellers often perceive their home’s value as higher, making a price reduction feel like an admission of lesser worth. This emotional reaction to a fundamentally business decision is natural, yet it does not contribute to the goal of maximizing the sale price.

For sellers facing a lack of buyer interest, reducing the list price is the most effective strategy to quickly attract more buyers and generate demand.

There are 5 considerations when pricing a home. Exploring comparative sold properties, the market climate when those comps were sold, comparative active properties, the current inventory and the current market. Even if the seller and their experienced agent do their best to price well, it may become evident that an decrease is in order after a few weeks. Using the target pricing model and revisiting those 5 considerations along with paying attention to the price bracketing will help refocus that target price and get your home sold.

*This blog was updated in October 2025 to show more recent data.