Stauffer said the pullback is “healthy,” though, because it helps reset home prices and balances out supply and demand.
“It also shows that sellers are becoming more in tune with market conditions,” she said.
While experts say Florida’s housing market is experiencing some major changes, they aren’t indicative of a crash—which would be a swift and severe decline in prices driven by an imbalance of supply and demand.
Rather, experts say the trend of inventory declines is a sign the Florida housing market is correcting itself.
“Higher inventory had been putting downward pressure on prices and giving buyers the upper hand,” Stauffer said. “Buyers had so many options, no urgency and plenty of time to negotiate.”
But now that inventory is tightening, the dynamic could start to shift, she said, because buyers will lose a little bit of that leverage they had and sellers could regain “a little” power.
Stauffer also said 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,” she added. “Demand isn’t the same and supply isn’t the same. It’s forcing everyone to a more realistic middle ground.”
And for that reason, it may not be the best time to sell your home in Florida, Morgado said—but it could be the right time to make a purchase.
“You can sell if necessary, of course, but wait if you can,” he said. “And for buying: You can get [a] good price, with lower rates and discounts, so take advantage of [that] now.”
