Why More South Florida Sellers Are Adjusting Their Prices in 2025

South Florida’s real estate market has been shifting—and savvy buyers and sellers are paying attention. While post-COVID years were defined by bidding wars and over-asking offers, 2025 is painting a much different picture. Inventory is up, days on market are stretching longer, and price reductions are becoming more common—especially in the condo sector.

If you're navigating this market, here's what you need to know.

Condos Are Facing the Greatest Headwinds

The condo market is feeling the brunt of recent policy changes. Since December 31, 2024, Florida law now requires condo associations to include both operating expenses and reserves for capital improvements in their annual budgets. While this boosts long-term safety and maintenance, it also significantly increases monthly costs for owners—especially in older buildings. Waiving reserves, a practice that used to keep HOA dues low, is no longer allowed.

Combined with rising insurance premiums and special assessments in the wake of the Surfside tragedy, many condo owners are finding themselves priced out—or struggling to sell units that now come with dramatically higher fees. Buyers, especially cash-light or second-home purchasers, are increasingly wary of these added costs.

As of Q2 2025, median condo time on market in Palm Beach County is approaching 70 days, up from under 50 just two years ago. Inventory is steadily climbing, while pending condo sales are now at their lowest level since 2019.

Single-Family Homes: A Slower But Still Stable Market

Single-family homes aren’t immune, but they’re in a better position. While buyer competition has cooled and price adjustments are more frequent, homes that are well-maintained, accurately priced, and in desirable locations still move—just not at 2021 speeds.

In Boca Raton and Delray Beach, for example, the median time to contract for single-family homes in Q2 2025 is now just over 50 days, compared to 30 days this time last year. More inventory means more choices for buyers, but also more pressure for sellers to price strategically.

The Psychology Behind Price Adjustments

For many sellers, especially those who purchased during the boom or refinanced at record-low rates, accepting a lower price can feel like a loss. But in this market, the most successful sales are happening when sellers meet the moment head-on.

Some signs your home may be overpriced:

• Low or no showing activity

• No offers within the first 2–3 weeks

• High days on market compared to similar listings

• Your agent recommended the highest possible list price just to win the listing

The truth is, if you’re listed near or above your neighbors, your home likely won’t stand out. Instead, consider a pricing strategy that undercuts your competition slightly to generate renewed interest—and potentially multiple offers.

The Case for Targeted Price Reductions

Buyers aren’t just looking for good deals—they’re searching within price brackets. Dropping your list price from $755K to $700K doesn’t just look more attractive, it also places your home into a new buyer pool searching in the $600K–$700K range. This simple shift can increase visibility and activity dramatically.

When it comes to how much to reduce:

• 3–5% can work if you’re getting showings but no offers

• 6–11% might be necessary if traffic is low

• 12%+ should be considered if your home isn’t getting any interest at all

Final Thoughts

The current market isn’t crashing—it’s correcting. This is a rebalancing that rewards strategy, flexibility, and realism. For sellers, especially condo owners, this means understanding the total cost picture from a buyer’s perspective and working closely with an experienced agent to nail pricing the first time—or adjust swiftly when needed.

For buyers, especially those willing to move quickly on correctly priced homes, 2025 could be a year of strong opportunities—especially in neighborhoods that had previously been out of reach.

Looking to buy or sell smart in a changing market?
Geoff Braboy offers trusted local insights, up-to-the-minute data, and pricing strategies that cut through the noise. Reach out to learn how to navigate this new landscape with clarity and confidence.