TAMPA, Fla. — While condo prices in Florida have been dropping in some parts of Florida, there hasn't been a mass influx of home buyers to those properties as homeowners insurance and increasing HOA fees are still keeping those wanting to buy away, according to new numbers from Redfin.
NEW DATA FROM REDFIN
The Redfin study found the median sale price in the Tampa metro area for condos dropped 1% year-over-year, but sales fell 4.1% in the same time frame, and new listings jumped 27.3%.
It was the same story in nearly every city Redfin looked at in the analysis.
The Orlando metro area saw sales jump 6.6% in the last year. Still, even with the jump in sales, new listings rose in Orlando by 23.3% year-over-year. North Port was the only city where median sale prices for condos rose, coming in at 7.1%
For comparison, nationally, Redfin found the median sale prices of condos rose 8.4% annually, with pending sales also rising 8.4% and new listings checking in at 11.1%.
Redfin said the home insurance costs exploding over the last few years has been one of the biggest driving forces of the home sales market. But, Redfin said HOA fees are also soaring.
The Redfin survey found that HOA fee rate hikes have been tied to new regulations put in place in the state after the 2021 Surfside condo collapse.
PRICED OUT OF PARADISE
It's something Venice condo owner Karen Shipman emailed ABC Action News about, worried she may soon be priced out of her condo she and her husband bought to retire here as their last home.
"Sometimes I'm not sure this will be our last home because our condo fees have gone up, and mainly insurance is a big factor," Shipman said.
Typically condo owners have to cover two types of insurance: 1) Their individual property insurance for their condo which is called an HO6 policy 2) and through their HOA in what's called a Master Condo Association Policy.
According to the Insurance Information Institute, Master Condo Association Policies are increasing by 100-500% right now.
"It all gets passed down to the homeowners," Shipman said.
A REALTOR'S PERSPECTIVE
Barbara Schmal is a Tampa Bay area broker associate who says condos are increasingly becoming harder to sell.
"I have never seen it this bad," Schmal said. "We do open houses, we can't get people to come to open houses, none of the agents that have buyers are even wanting to show the property, and it's making our sellers very, very nervous."
She provided numbers that show right now there are 2,660 condos on the market in Pinellas County, of those 869 are in 55+ communities.
"I currently have 5 listings in the 55 and older communities, the longest one I have on the market, which I listed back in August; it's been on the market for 151 days, and we've had 3 showings," Schmal said.
A report from the Florida Realtors shows that the slowing condo market is bringing down prices; the median price of a condo in January 2024 was listed at $205,000 dollars compared to the median price of $220,000 in January 2023.
2024-2023 Condo Sales by ABC Action News on Scribd
"I'm saddened by this as an agent and condo owner, and being elderly, I just don't know what's next in store for us... we haven't heard any good news yet," she added.
