Florida’s housing market was one of the hottest during the pandemic, driven by the state’s appeal to remote workers, retirees, and investors relocating from high-cost states like New York and California. These buyers were seeking more space, lower taxes, and lenient COVID restrictions. Between March 2020 and June 2022, home prices in Florida surged by a remarkable 51%.
Demand remained high during this period, which kept inventory levels low. However, Florida’s inventory is now dwindling for a very different reason. Experts say the decline isn’t due to renewed demand, but rather rampant delistings and fewer new listings. According to Zillow data, home prices have dropped about 5.4% year over year.
“Low prices and low demand are making people who aren’t in a hurry simply withdraw listings rather than sell at a low price,” explained Alexei Morgado, a Florida real estate agent and founder of real-estate exam prep company Lexawise, in an interview with Fortune. “Inventory is down, but not because of big sales, but rather because of delistings and slow demand. So it’s all a mixed bag.”
Data from Realtor.com in August highlights this trend. Some parts of Florida saw nearly 60 homes delisted for every 100 newly listed homes. Miami had the highest delisting-to-listing ratio at about 59, followed by Tampa at 33 and Orlando at 28.
Overall, the number of single-family homes for sale in Florida fell from more than 100,000 in the spring to about 96,000 after years of rapid growth, according to Simonsen, founder and president of real-estate analytics firm Altos Research.
This downward trend is a signal that the market is “clearing out” would-be sellers, said Jenna Stauffer, a Florida-based real-estate broker and global real estate advisor for Sotheby’s International Realty. According to Stauffer, those who needed to sell have most likely already done so, even if it meant lowering prices or offering concessions.
Stauffer describes the current pullback as “healthy” because it helps reset home prices and balances supply and demand. “It also shows that sellers are becoming more in tune with market conditions,” she added.
### Is the Florida Housing Market Crashing or Correcting?
While experts acknowledge the major changes occurring in Florida’s housing market, they insist these shifts are not indicative of a crash—a swift and severe decline in prices driven by an imbalance of supply and demand. Instead, the trend of declining inventory reflects a market correction.
“Higher inventory had been putting downward pressure on prices and giving buyers the upper hand,” Stauffer explained. “Buyers had so many options, no urgency, and plenty of time to negotiate.”
Now that inventory is tightening, the market dynamic could start to shift. Buyers may lose some of the leverage they previously held, while sellers could regain “a little” power.
Stauffer emphasized, “It’s not a crash in Florida, but a reset. Sellers have to recognize that this is a different market than a few years ago. Demand isn’t the same and supply isn’t the same. It’s forcing everyone to a more realistic middle ground.”
### What Does This Mean for Buyers and Sellers?
Alexei Morgado advises caution for sellers in the current market. “It may not be the best time to sell your home in Florida,” he said, “but it could be the right time to buy.”
“If you must sell, of course, go ahead,” Morgado added. “But if you can wait, wait. And for buyers: You can get a good price, with lower rates and discounts, so take advantage of that now.”
As Florida’s housing market continues to evolve, understanding these shifts can help both buyers and sellers make informed decisions in an ever-changing landscape.
https://fortune.com/2025/10/20/florida-housing-market-correction-inventory-home-prices-delisting-inventory/