In February 2025, U.S. existing home sales rose unexpectedly by 4.2% to a seasonally adjusted annual rate of 4.26 million units, surpassing the forecasted 3.95 million units. This increase occurred despite challenging economic conditions, highlighting a potential resurgence in the housing market.
The median price for existing homes increased to $398,400, a 3.8% rise from the previous year. This marks the 20th consecutive month of year-over-year gains.
The inventory of existing homes grew by 17% from the previous year, totaling 1.06 million units, which represents a 3.5-month supply at the current sales pace. Additionally, homes stayed on the market for an average of 42 days in February, up from 38 days in the same period in 2024.
Individual investors and second-home buyers accounted for 16% of all home sales in February, while foreclosures and short sales represented just 3% of the total.
The Florida Housing Market
As of the end of February 2025, Florida recorded 25,321 property transactions, marking a year-over-year decline of 8.5%.
Sales of existing single-family homes fell by 7% over the month, with condominium and townhome sales experiencing an even sharper decline of 13%. Despite these drops, home prices seem to have stabilized. The median sale price in February reached $379,900, reflecting a slight year-over-year decrease of 0.3%.
Active inventory levels continue to explode higher, up 33.9% year-over-year in February to more than 195,000 units. This represents more than a 300% increase from the recent low in February 2022.
“The arrival of a new year usually brings with it a revival in the rate of homes being listed for sale, and that was certainly the case this January,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “Over 35,500 single-family homes were listed for sale in Florida in January, which is the most we’ve seen in any month since July 2022″.
Closed Sales
In Florida, the number of closed sales transactions saw a year-over-year decline in February by 8.5%. However, transaction volume of 25,321 units is a sharp contrast from the 38,197 units closed in May 2024.
Closed sales on homes over $1 million increased by 3.9% year-over-year, indicating that the luxury home market remains strong.
Median Sales Prices
Since mid-2024, median prices appear to have stabilized. The median price was down slightly by 0.3% year-over-year to $379,900. However, this figure is below the all-time high recorded in June 2024 of $393,990.
The median sale price on homes over $1 million declined during February, down 2.5% year-over-year.
Active Inventory
Active inventory in Florida across all property types continued its upward trend in December, rising 34.9% year-over-year to 186,830 units.
Specifically, single-family home inventory grew by 31.3%, while townhomes and condominiums saw a more significant increase of 39.3%.
The South Florida Housing Market
Year-over-year, the South Florida market continues to see moderate growth in median sale prices while experiencing a slowing in the rate of sale transactions.
During the month of February, closed sales declined by 11% year-over-year, totaling 4,758 units. The total value of homes sold increased by 4.8% to $4.2 billion.
The median price for homes across all categories continued to climb, up 7.2% year-over-year to $520,000.
January continued the trend of increasing inventory levels. Overall inventory was up 37% to 47,673 units, approaching a level not seen since 2019.
The Greater Orlando Housing Market
Existing homes sales in the Orlando housing market fell by double digits, down 12% year-over-year, with 2,666 closed sale transactions taking place during the month. The total dollar volume of sales increased by 25% to $1.8 billion, reflecting a rise in the sale of luxury homes.
Year-over-year, the median home price for all types of properties remained flat at $400,000, slightly below of the all-time high of $415,000.
The number of existing-homes on the market for sale continued to rise, marking a 45% increase from the previous year. New listings also increased, up 7.9% year-over-year.
The Tampa Bay Housing Market
Existing-home sales in the Tampa–St. Petersburg–Clearwater MSA declined by 6.5% year-over-year, to 4,077 units. Dollar volume also declined by 4.6% to $1.9 billion.
The median home price across all property types also declined by 1.9% to $362,950 – well below the recent high of $390,000.
Active inventory levels continue to increase, up 30% year-over-year with 20,541 homes across currently available for sale. New listings across the metro area declined by 0.6% to 7,006 units.
Do you have a property to sell?
If you have a property that you need to sell, now is the time to call Quantum Realty Advisors, Inc. for a free, 30-minute consultation to discuss your immediate needs and how we can help to address them.
On behalf of our clients and strategic partners, we have successfully sell over hundreds of residential and commercial properties in most major markets nationwide.
Our team has an extensive network of highly experienced partner brokers who can assist with all the local requirements, and we will personally be there for you every step of the way.
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