For decades, Florida has been the quintessential winter escape for Canadian snowbirds. However, the Sunshine State's condominium market is currently navigating a period of significant turbulence. A confluence of rising costs, new regulations, and shifting market dynamics is prompting many Canadian owners to reconsider their investment. For those thinking of selling or buying a Florida condo, understanding these undercurrents is crucial. Here’s a fact-based look at the five key factors reshaping the market.

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1. A Surge in Condo Inventory is Tipping the Scales

The fundamental rule of supply and demand is on full display in Florida. The market is currently flooded with condominium listings, giving buyers unprecedented choice and negotiating power.

According to market analysis from early 2025, the supply of condos and townhouses has reached 8.2 months, firmly placing it in buyer's market territory. As detailed in a report by NaplesED.com, active listings for condos saw a staggering year-over-year increase, with some reports showing a 40% jump in properties for sale. This glut of options means sellers must price their units competitively and be prepared for longer days on the market.

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2. The Financial Squeeze: Soaring Insurance and HOA Fees

Owning a condo in Florida has become significantly more expensive. Two major costs are hitting owners' wallets hard:

• Homeowners Insurance: Florida's insurance market is in crisis, with premiums that are often double the national average. For condo owners, this means higher personal insurance costs and a larger portion of their association fees going toward the building's master policy.
• HOA and Special Assessment Fees: Following new state regulations, Homeowner Association (HOA) fees are climbing. A 2025 market report highlights that many owners in older buildings are being hit with massive special assessments—sometimes ranging from $20,000 to over $100,000*—to pay for long-deferred maintenance.

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3. The Ripple Effect of New Safety Legislation

The tragic 2021 collapse of the Champlain Towers South in Surfside prompted sweeping legislative changes aimed at improving building safety. While essential, these new laws have direct financial consequences.

Condo associations are now mandated to conduct "milestone inspections" for buildings over 30 years old and must fully fund their financial reserves for future structural repairs. As detailed in a study by the Florida Policy Project, these unfunded liabilities, which associations could previously waive, are now coming due, forcing the steep increases in fees and assessments that are pressuring owners to sell.

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4. Sales are Slowing and Prices are Correcting

With a flood of inventory and rising costs, the market's momentum has cooled. Statewide condo sales have seen a significant drop, with some reports from early 2025 showing a decline of nearly 15% year-over-year.

This slowdown is naturally impacting prices. The median sales price for a Florida condo has softened, dipping to around $335,000*—a 6% decrease from the previous year. This signals a clear market correction from the frantic pace of the pandemic-era boom.

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5. A Pullback from Foreign Buyers, Including Canadians

Florida has long been a top destination for international real estate investment. However, that trend is reversing. A Miami Association of Realtors report revealed that the share of purchases by foreign buyers in South Florida plummeted to just 10% in 2024, a drastic fall from 50% in 2018, as noted by Florida Trend.

Canadians, traditionally the largest group of foreign buyers, are part of this trend. Factors like a less favorable exchange rate, rising carrying costs, and political uncertainty are leading many to cash out. Some real estate professionals have reported a "sharp uptick" in Canadians looking to sell, creating even more inventory in an already saturated market.

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Strategic Advice for Canadian Owners

• For Sellers: The market has shifted. Pricing your property accurately from the start is essential. Be prepared to negotiate and provide full transparency regarding any upcoming special assessments and the building's financial health.
• For Buyers: This market presents opportunities for those who do their homework. Diligently review all condo documents, including the budget, the latest reserve study, and board meeting minutes to understand the building's financial and structural condition before making an offer.

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Navigating this evolving market requires timely data and expert guidance. Whether you are a Canadian owner considering selling your Florida property or a buyer looking for a strategic investment, our team at Coldwell Banker Horizon Realty has the expertise to help you achieve your goals.