Housing Market Trends
The housing market is experiencing a cooldown as the number of listed homes continues to rise. Home sales are beginning to slow across the United States, including in South Florida. And as the supply of active listings grows, prices may start to decrease.
Current Market Conditions
Pending home sales have fallen by 6.4% in the U.S. compared to last year, according to Redfin, a real estate and mortgage service. South Florida is experiencing this drop, too. The market has begun digesting what Keyes Company CEO Mike Pappas called the “COVID-19 sizzle,” when home sales were at an all-time high and inventory was at an all-time low as people moved quickly in the real estate market.
Market Shift
Now that it’s been a few years since the peak of the pandemic, “we’re getting a more normal crescendo in the market,” Pappas said. According to the Broward, Palm Beach and St. Lucie Realtors, active listings of single-family homes, townhouses and condominiums rose from January 2024 to January 2025 in both Broward and Palm Beach counties.
In Broward County, 3,838 single-family homes were listed for sale in January 2024, but this past January, 5,213 single-family homes were on sale, which is an increase of about 36%. Also in Broward, 7,494 townhomes and condos were on sale in January 2024, and that number rose to more than 11,000 in January 2025.
Regional Market Analysis
The housing market scene was similar in Palm Beach County — 4,900 single-family homes were available for sale in January 2024, and that number jumped by 25% to 6,136 in January 2025. And 5,785 townhomes and condos were on sale in January 2024 in Palm Beach County, but a rise of nearly 39% led to 8,023 active listings this past January. Palm Beach and Broward counties’ year-over-year change is a sign of what Florida is experiencing right now. The state saw the highest number of homes listed for sale in the past 13 years with more than 172,000 homes available on the market, Redfin recently noted.
Causes for Inventory Growth
Housing inventory is rising largely because interest rates have been consecutively declining — ever so slightly — for several weeks, newly constructed homes continue entering the market, and nationally, people who rent homes are staying put for longer periods of time before moving, according to recent data by Point2Homes. Sellers are now responding to these market conditions, which could mean a cooldown in price growth over the next several months.
Market Implications
This market softening could then ultimately lead to more buyers entering the market this spring, according to Realtor.com. Pappas said inventory on the market and price appreciation have an inverse relationship: The greater the supply, the more likely that price appreciation will slow. The number of available houses that experienced price cuts was the highest in February than it has been since 2016 across the U.S., according to Realtor.com.
When to Buy and When to Sell?
For owners hoping to sell, real estate experts believe the ideal time is quickly approaching, with trends from previous years indicating that mid-April is quite favorable for sellers. “Spring is typically a good time to list your home,” Hale said in a recent Realtor.com report. “Very predictably, homes listed in the spring tend to be priced higher and sell faster than the average week throughout the year. While tariffs and inflation continue to be concerns that could dampen buyer and seller confidence, harnessing the seasonal trends in real estate is a proactive way to navigate what’s ahead.”
Conclusion
In conclusion, the housing market is experiencing a cooldown as the number of listed homes continues to rise. Home sales are beginning to slow, and prices may start to decrease. The current market conditions, regional market analysis, causes for inventory growth, market implications, and the best time to buy and sell are all important factors to consider for buyers and sellers. As the market continues to evolve, it’s essential to stay informed and adapt to the changing trends.
FAQs
Q: What is happening to the housing market?
A: The housing market is experiencing a cooldown as the number of listed homes continues to rise, leading to a decrease in home sales and potentially lower prices.
Q: Why is the inventory growing?
A: The inventory is growing due to declining interest rates, newly constructed homes entering the market, and people staying in their rental homes for longer periods.
Q: When is the best time to sell a home?
A: According to real estate experts, the ideal time to sell a home is in the spring, with mid-April being a particularly favorable time.
Q: What should sellers do to prepare their homes for sale?
A: Sellers should prepare their homes for sale by decluttering, doing fix-ups, and getting the marketing and promotion ready, which can take a few weeks to a month.
Q: What is the current state of the housing market in Florida?
A: Florida is experiencing a rise in housing inventory, with the state seeing the highest number of homes listed for sale in the past 13 years, with over 172,000 homes available on the market.
Originally Published: March 13, 2025 at 3:24 PM EDT
