Florida Condo and Townhouse Sales Decline by 10.5% in 2024

by Adam Miller

Florida Condo and Townhouse Sales Decline by 10.5% in 2024—Experts Cite New Laws and Rising Fees

Florida's condo and townhouse market saw a notable decline in 2024, with sales dropping 10.5%—the lowest level recorded in 15 years. Experts point to increased special assessments and higher monthly fees stemming from newly enacted condo safety regulations as key factors in this slowdown.

According to Florida Realtors, a leading trade association in the state, there were 94,380 closed sales of existing condos and townhouses in 2024, down from 105,411 in the previous year. The total dollar volume of these transactions was $44.4 billion, reflecting a 9.1% decrease from 2023’s $48.8 billion.

Florida Condo and Townhouse Sales Decline by 10.5% in 2024

Legislation Contributing to Market Hesitation

Several factors played into the downturn, including concerns over insurance coverage and compliance with reserve requirements, which led some prospective buyers to reconsider their options.

"Multiple factors were responsible for the underperformance of this sector, including concerns about insurance coverage and reserve requirement compliance, which left some buyers hesitant," said Florida Realtors Chief Economist Dr. Brad O'Connor. "As a result, we've recorded the lowest number of condo and townhouse sales in Florida since 2010."

New regulations enacted in response to the tragic 2021 Surfside condo collapse have introduced stricter safety and maintenance standards, requiring condominium associations to conduct thorough inspections and bolster financial reserves for structural repairs. These mandates have led to special assessments and substantial increases in monthly fees—conditions that may have discouraged buyers while prompting some owners to sell.

In light of growing concerns from property owners, Governor Ron DeSantis suggested that the legislation could be revisited during the upcoming special session, though Florida’s legislative leadership had previously dismissed the idea. The session, originally delayed due to recent severe winter storms, is now set to begin on Monday.

Florida Condo and Townhouse Sales Decline by 10.5% in 2024

Market Trends: Declining Cash Purchases and Shifting Price Points

The number of cash buyers in the Florida condo market dropped by 14.1% in 2024. The median sale price of condos declined slightly by 0.8%, falling from $322,500 in 2023 to $320,000 last year. However, the average price increased from $462,890 to $469,933 over the same period.

Inventory levels surged, with 64,283 active listings available at the end of 2024—representing a 42.8% increase from 2023’s 45,002 listings.

Single-Family Home Sales Also Face Declines

While December saw a brief surge in single-family home purchases, overall sales for the year still fell by 1.9% compared to 2023.

"The 2024 Florida housing market experienced moderate declines in sales and relatively stable home prices," said O'Connor. "While mortgage rate fluctuations had an impact, rates remained high compared to recent years. The most notable trends were the widening gap between the single-family and condo/townhouse markets and the overall rise in available inventory."

A total of 252,688 single-family homes were sold in 2024, marking the lowest annual figure since 2014.

Shifting Home Prices and Market Dynamics

Despite fewer single-family homes changing hands, total sales volume in this category rose to $151.6 billion, a 2.5% increase over 2023’s $149.9 billion. The median sale price climbed by 2.4% to $420,000, up from $410,000 the previous year.

The average sale price reached $599,785—a 4.5% increase over 2023’s $573,997.

However, overall sales numbers continued to decline, likely due to the market's concentration on higher-end homes. Sales of properties priced at $1 million or more grew by 7.8% year-over-year, while homes in the $600,000-$999,999 range saw a 2.1% increase. In contrast, sales in all other price categories fell.

Additionally, the time from listing to contract lengthened, and the number of all-cash single-family home purchases dropped by 6.3% to 71,465 transactions in 2024.

Looking Ahead: Challenges and Opportunities in 2025

Experts anticipate that affordability challenges will persist into 2025, with high mortgage rates and rising insurance costs remaining key concerns.

"The Florida housing market faces several hurdles in 2025—some familiar, some new," O'Connor noted. "Mortgage rates, insurance expenses, and potential federal policies affecting inflation will continue to shape market dynamics."

The potential for legislative intervention in the condo sector remains uncertain, as lawmakers weigh possible changes to fees and financial requirements imposed on condo owners.

For a deeper dive into the full report, you can read the original article here.

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