Tampa condo sales, prices fall as market stagnates

Several signs indicate the market for condominiums in Florida is stagnating, according to real estate technology company Redfin, which released a report showing Tampa among the cities in the Sunshine State experiencing a downturn in the condo market.

Active condo listings increased by 57.2% in Tampa in July compared with a year ago, according to Redfin.

While more listings were available, pending condo sales decreased by 18.9% and condo sales overall fell by 8.1% year-over-year, the real estate company reports.

“The condo market isn’t moving,” Steven Weiss, a Redfin Premier agent in Tampa, says in a statement. “Most of today’s buyers want move-in ready single-family homes.”

Nationally, Redfin reports pending condo sales fell 5.5% year over year, dropping to the lowest level of any July on record, while pending single-family home sales stayed at 2023 levels.

“It’s much more difficult to sell a condo,” Weiss says in a statement. “Buyers are aware we’re at somewhat of a tipping point for condos, and that their value may continue to decline as HOA fees rise and people grow more wary of buying in a waterfront building.”

Since last summer, Redfin found that homeowner’s association dues are up 17.2% in Tampa. It attributes the rise in HOA fees to increasing insurance costs as well as the 2021 condo collapse in Surfside that resulted in Florida legislation requiring structural inspection and funding for repairs.

Homebuyers are not the only ones stepping back from the condo market. "Florida Redfin agents are reporting investors aren’t buying condos anymore," according to Redfin. "Instead, those who bought condos to rent them out a few years ago are trying to offload them." Nationally, the real estate company reports investor purchases of condos was down 3% in the second quarter compared with 2023.

As fees are increasing and condo sales are slowing, multifamily home construction — including the building of new condominiums— is adding to the inventory.

Amid the backdrop of increasing supply and slowing demand, prices of condos are falling in Tampa, according to Redfin. The median sale price for a condo in Tampa was down 4.9% in July compared with the previous year, the real estate company reports. Based on Redfin data, the median sales price for a Tampa condo in July was $237,750.

Metropolitan areas like Fort Lauderdale, Jacksonville, Orlando and Miami are also seeing similar upticks in condo listings and declines in prices and sales, according to Redfin's report.

According to Redfin, Florida and Texas are seeing the most pronounced signs of condo sales slowing, though nationally the number of condos for sale has increased by 27.1% since last year. While it says Texas and Florida are driving the “downturn in the national condo market,” Redfin notes that the median condo price nationwide is up 3.9% compared with 2023, since “the mismatch in supply and demand hasn’t yet pushed down prices nationwide.”