Worst Florida Housing Markets Facing Steepest Price Declines in 2025

Thinking about buying or selling a home in Florida? It's crucial to stay informed about the latest market trends. In May 2025, certain areas experienced noticeable dips in median sale prices. This article dives into the Florida housing markets facing the steepest drops in home prices, based on the latest data from Florida Realtors.

Based on year-over-year percentage change in median sale price as of May 2025, those markets were the Naples-Immokalee-Marco Island MSA, Punta Gorda MSA, The Villages MSA, Sebastian-Vero Beach MSA, North Port-Sarasota-Bradenton MSA, Cape Coral-Fort Myers MSA and Tallahassee MSA.

Let's face it, the real estate market is a constantly shifting tide. One day, your home's value might be up, the next, not so much. What was once a seller's dream can quickly become a buyer's paradise, and vice versa. Right now, Florida is somewhere in the middle, trying to find its balance.

According to Florida Realtors President Tim Weisheyer, “Florida’s housing market is finding its balance, and that’s good for buyers and sellers alike.”

However, some areas are feeling the pinch of price drops more than others. This doesn't necessarily mean these are bad places to live, but it's something to consider if you're looking to buy or sell in these regions. As an expert in the field, I will walk you through these markets and explain what these trends could mean for you.

The Big Picture: Florida's Housing Market in May 2025

Before we zoom in on the specific areas, let's take a look at the overall state of Florida's housing market in May 2025:

• Closed Sales: Down 5.7% for single-family homes and 19.9% for condo-townhouses, year-over-year.
• Median Sales Price: Single-family homes were at $415,000, a decrease of 2.7% from the previous year. Condo-townhouses showed at $310,000, a sharper decrease of 6.1%.
• Inventory: Active listings increased significantly, up 28.8% for both property types.

As you can see, inventory went up from last year, closed sales were down and prices saw a small decline. This suggests a shift towards a more balanced market, where buyers have more choices and sellers might need to be more competitive. We are seeing a move away from the intense demand seen in the post-pandemic years. The good news? Prices are still considerably higher than they were in 2020.

Worst Florida Housing Markets Facing Steepest Price Declines in 2025

Now, let's explore the specific metropolitan areas experiencing the most significant price reductions. Below's a table summarizing these market's data.

Metropolitan Area	Y/Y % Change in Median Sale Price (May 2025)	Median Sale Price (May 2025)	Y/Y % Change in Closed Sales (May 2025)
Naples-Immokalee-Marco Island MSA	-19.2%	$767,800	-15.3%
Punta Gorda MSA	-14.5%	$325,000	1.7%
The Villages MSA	-11.3%	$347,000	23.8%
Sebastian-Vero Beach MSA	-10.2%	$386,190	-6.8%
North Port-Sarasota-Bradenton MSA	-9.9%	$475,000	-4.7%
Cape Coral-Fort Myers MSA	-9.6%	$375,000	-1.6%
Tallahassee MSA	-5.2%	$340,000	-8.8%

Let's go through each one:

1. Naples-Immokalee-Marco Island MSA (Collier County)

• Price Drop: A significant 19.2% decrease in median sale price.
• Median Sales Price: $767,800 in May 2025.
• Closed Sales: Down 15.3% year-over-year.

Naples, often associated with luxury real estate, is experiencing a considerable correction. This could be due to factors like overvaluation during the peak of the pandemic or a shift in buyer preferences. What does this mean? High-end buyers might find some deals here, while sellers may need to adjust their expectations.

Looking at this market, I think it's likely that the luxury segment, which saw unprecedented growth in recent years, is now normalizing. The drop in closed sales supports the idea that buyers are being more selective.

2. Punta Gorda MSA (Charlotte County)

• Price Drop: A substantial 14.5% decrease in median sale price.
• Median Sales Price: $325,000 in May 2025.
• Closed Sales: Up 1.7% year-over-year.

Punta Gorda presents a mixed picture. While prices fell significantly, closed sales actually increased slightly. This could indicate that lower prices are attracting buyers, yet there is still some demand. As a homeowner, you may need to get ahead of other houses. By offering incentives to buyers can get their interst in your offer.

The disconnect between price declines and sales increases intrigues me. It suggests a market where affordability is becoming a key driver. Buyers who were previously priced out might now find opportunities in Punta Gorda.

3. The Villages MSA (Sumter County)

• Price Drop: A notable 11.3% decrease in median sale price.
• Median Sales Price: $347,000 in May 2025.
• Closed Sales: Up a substantial 23.8% year-over-year.

The Villages, known as a popular retirement community, shows a similar pattern to Punta Gorda. Despite a significant price drop, closed sales are up dramatically. The increased sales activity might be due to increased marketing efforts to attract new seniors to the area from outside of Florida as well as lower costs enabling more purchases.

I believe The Villages' unique demographic could be influencing this trend. It's possible that retirees are still drawn to the area, and the price adjustments are making homes more accessible.

4. Sebastian-Vero Beach MSA (Indian River County)

• Price Drop: A considerable 10.2% decrease in median sale price.
• Median Sales Price: $386,190 in May 2025.
• Closed Sales: Down 6.8% year-over-year.

Sebastian-Vero Beach is seeing a drop in both prices and closed sales. This could suggest a slowdown in demand and increased inventory affecting prices.

With both prices and sales declining, this market seems to be facing some headwinds. It may be that buyers are holding back, anticipating further price reductions.

5. North Port-Sarasota-Bradenton MSA (Manatee and Sarasota Counties)

• Price Drop: A significant 9.9% decrease in median sale price.
• Median Sales Price: $475,000 in May 2025.
• Closed Sales: Down 4.7% year-over-year.

This region, with its beautiful beaches and growing population, is also experiencing price corrections and falling closed sales with no change in those trends.

I believe the higher median price point in this area might be a factor. It may be becoming less affordable for some buyers, leading to decreased demand and price adjustments.

6. Cape Coral-Fort Myers MSA (Lee County)

• Price Drop: A noticeable 9.6% decrease in median sale price.
• Median Sales Price: $375,000 in May 2025.
• Closed Sales: Down 1.6% year-over-year.

Cape Coral and Fort Myers, still recovering from Hurricane Ian, may be seeing price adjustments due to the ongoing rebuilding efforts and insurance challenges.

The hurricane's impact likely plays a significant role in this market. The recovery process can be slow and complex, potentially affecting property values in the short term.

7. Tallahassee MSA (Gadsden, Jefferson, Leon, and Wakulla counties)

• Price Drop: A more moderate 5.2% decrease in median sale price.
• Median Sales Price: $340,000 in May 2025.
• Closed Sales: Down 8.8% year-over-year.

Tallahassee, the state capital, is experiencing a gentler price decline compared to the coastal regions. This could be due to its more stable economy and less reliance on tourism-driven real estate.

Tallahassee's relative stability might be due to its employment base, which includes government, education, and healthcare sectors. These sectors tend to be less volatile than those heavily dependent on tourism or seasonal residents.

Key Takeaways and My Opinion

So, what does all this mean for you, the potential buyer or seller?

• For Buyers: This could be the window if your buying. These areas are looking more affordable and you may find better deals. However, do your due diligence! Research market conditions and look forward instead of looking to the past.
• For Sellers: Be realistic about pricing. The days of easy profits might be over, which could be why closed sales are down so much over the past year. Work with a real estate agent to give the consumer good reasons to buy your real estate. Make sure yours is better than the competition.

As an investor in the real estate field, I always caution against making broad generalizations. Real estate is hyperlocal. Just because one neighborhood is down doesn't mean another neighborhood next to it is in the same condition.

Looking at the overall market, I believe Florida is transitioning from a period of hyper-growth to a more sustainable pace. The increased inventory is a good sign, giving buyers more choices. It's a far cry from the frenzy that we saw a couple of years ago.

Keep in mind that these trends are based on a snapshot in time. The market can change quickly. Stay informed, work with qualified professionals, and make decisions that align with your personal financial goals.