The market may not be roaring back, but certain areas saw a big recent year-over-year jump in activity
A deep condo market correction in Florida grabbed headlines last year as prices plunged and activity slid thanks to challenges including skyrocketing fees for owners and concerns about the impact of climate change on the state.
But as the 2026 spring market rumbles into life, are there early signs that buyers are beginning to trickle back to the beleaguered sector at last?
Consider February’s real estate data for Naples, a prominent market in Southwestern Florida. Closed condominium sales soared by nearly 40% that month compared with February 2025, according to the Naples Area Board of Realtors (NABOR), as prices stayed largely flat and available inventory fell.
In Miami-Dade and Palm Beach, condo sales also rebounded thanks to more enthusiasm for properties in an accessible price range of $400,000 and $500,000, fueling hopes that the market could finally be about to recover lost ground.
‘Buyers are showing more confidence’
The year to date has seen a “more stable and more predictable” market than 2025, according to Nexa Lending mortgage loan officer Kelly McBride, who described that change as a welcome shift for buyers and professionals in the real estate industry.
Fluctuating mortgage rates and uncertainty on available inventory caused plenty of hesitation for buyers last year – but while those rates have barely settled in 2026, the current market suggests condo shoppers are now more comfortable with the outlook, McBride told Mortgage Professional America.
“This year… buyers are showing more confidence. They’ve had time to adjust to the current rate environment and better understand how to navigate the market,” she said. “As a result, we’re seeing more consistent activity and a steadier pace overall, which is a positive sign for both buyers and sellers.”
Retirees and second-home buyers from states like New York, New Jersey, Massachusetts, and Illinois continue to make up a strong share of the Southwestern Florida condo market – and the fact that plenty of those buyers are able to pay in cash removes the need for mortgage financing.
But that’s not to say most buyers are able to enter the market without a mortgage. “Mortgage financing is still very much part of the landscape,” McBride said. “With rates lower than last year, many buyers are choosing to keep their funds in interest-earning investments rather than tying up all their liquidity in a home purchase.”
Why the market isn’t set to see a huge purchase surge
A caveat for those expecting the Florida condo market to post a resounding rebound this year is the fact that many of the same pitfalls from last year are still in play.
Skyrocketing fees associated with condo ownership are especially problematic, including HOA (homeowners’ association) and mandatory repair costs, as well as ever-climbing insurance costs because of growing weather-related risks and strict safety regulations on buildings constructed before 1995.
“From a lending perspective, one of the biggest challenges when purchasing a condo is navigating the requirements of the condo association,” McBride said. “Lenders closely review the association’s overall financial health including reserves, insurance coverage, and any potential risks.
“This is where choosing the right mortgage professional becomes incredibly important. Having an experienced loan officer can make a significant difference in ensuring a smooth and successful transaction. It’s also important for buyers to factor in homeowners’ association dues, which can be substantial and play a key role in overall affordability.”
It remains to be seen whether the market will roar back – and what its long-term prospects are, considering the rising impact of weather-related risks on shorefront and other properties in Florida.
For now, though, the fact that inventory has soared over the past year – even despite the recent tightening – and prices are down means buyers willing to take the plunge will find a good deal, McBride said.
“We’re seeing increased inventory in the condo market, which is creating more opportunities for buyers,” she said. “With more options available, buyers are gaining negotiating power, and for those seeking a low-maintenance lifestyle in Naples and the surrounding areas, condos can represent exceptional value right now.”
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