T
he Florida real estate market is showing signs of slowing down, with homes sitting on the market for longer periods than usual. According to Realtor.com's December 2024 Monthly Housing Report, the typical home spent 70 days on the market last month, nine more days than in December 2023 and eight more days than November 2024. This marks the slowest December since 2019 and the slowest month since January 2023.

    The report also found that newly listed home inventory increased by 4.8% in the South, while the Northeast and Midwest saw decreases of at least 5.6%. On a national level, there were 22% more homes available in 2024 than in 2023.

    In Florida, four cities have seen significant increases in inventory: New Smyrna Beach, Palm Coast, Panama City, and Gainesville. These cities have median days on the market ranging from 91 to 95 days, with median list prices between $305,950 and $499,675.

    Experts attribute the slow market to a combination of factors, including high mortgage rates and an increase in inventory. Realtor.com senior economic research analyst Hannah Jones notes that warm markets like Florida tend to slow down seasonally, but this year saw a more significant slowdown due to buyers being deterred by high home prices and mortgage rates.

    Florida's real estate market has been particularly affected by the pandemic, with many new construction projects attempting to meet demand from out-of-state buyers. However, with 30-year fixed rates hovering around 7%, prospective buyers have been hesitant to enter the market. Additionally, extreme weather events such as hurricanes have caused flooding and destruction, leading to increased home insurance costs.

    According to Bankrate, Florida's average annual cost of homeowners insurance is $5,527, more than twice the national average. This has contributed to a decline in buyer confidence and a slowdown in the real estate market.