Florida Housing Market Update: What Buyers & Realtors Need to Know

The Florida housing market is slowly stabilizing. According to the National Association of Realtors (NAR), existing home sales increased 2% in July 2025, with inventory up 15.7% from the same period last year. Pending sales dipped slightly, but overall, buyers have more choices, especially for single-family homes, while condos and townhomes remain softer.

Fed Rate Cut & Mortgage Rates

On September 17, 2025, the Fed cut its benchmark federal funds rate by 0.25% to 4.00–4.25%. While mortgage rates aren’t directly set by the Fed, this move can influence them indirectly via the bond market. Long-term mortgage rates follow Treasury yields, which react to Fed signals, inflation, and economic data. Expect slight rate relief, but don’t anticipate a dramatic drop just yet.

What This Means

For First-Time Buyers:

• Slightly lower mortgage rates and more inventory are positives.

• Monthly payments remain high; affordability is still a challenge.

• Watch local inventory and negotiate strategically.

  
  

For Realtors:

• Educate clients on how mortgage rates work (not directly tied to Fed cuts).

• Highlight areas with stronger inventory and single-family homes.

• Advise on timing and rate-lock strategies.

  
  

The market isn’t cooling dramatically, but opportunities exist. Buyers can find more options, and rates may ease a bit. Realtors should guide clients with realistic expectations while staying alert to economic trends that influence rates.