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Florida Condo Sales, Prices Have Fallen Thanks to Insurance, HOA Costs, Redfin Says *Centurion Insurance AFS*

Feb 28, 2024 (0) comment , , , , , , , , , ,


Condominium sales and prices in Miami, Jacksonville and Tampa and other parts of Florida have dropped over the past year, largely due to the soaring cost of property insurance and association fees, according to Redfin, a U.S. real estate and tracking service.

“The average cost of homeowners insurance across Florida increased by about 40% in 2023 alone, according to reports, and homeowners association (HOA) fees are multiplying for many condo buildings,” the Redfin report said. “In addition to slowing demand, the rising cost of insurance and fees are pushing prices down.”

The report is not surprising to insurance brokers and agents, who have seen some condominium associations’ property and liability insurance premiums quadruple, while policy limits have been slashed in Florida’s still-distressed market. Legislation that would help, by allowing Citizens Property Insurance Corp. and surplus lines to cover more condo associations, is still pending in the Florida Legislature. Senate Bill 1716 and SB 1503 were approved by second Senate committees earlier this week.

Redfin’s data show that Florida condo prices and sales have fallen while prices have risen by 8.4%, on average, for the United States overall, from January 2023 to January 2024. In Jacksonville, the median sale price for a condo was $254,000 last month, a 6.5% drop from the previous year.

Condo sales in Jacksonville showed the biggest drop for major Florida metro areas, falling more than 27% from the previous year, Redfin noted. In Miami, the median price dropped 2.5% and sales fell 8.7%. The Orlando area saw prices drop 4.8% but sales rose by more than 6%. In Tampa, the median price declined by just 1% but sales slipped by 4.4%, the report noted.

Cape Coral saw prices continue to rise, although sales fell by more than 8%.

The rising costs for condo associations and owners have been blamed on a number of factors, including excessive claims litigation against insurance companies in recent years and hurricane losses. After the collapse of the Champlain Towers South building near Miami Beach, which killed 98 people in 2021, Florida lawmakers required more-frequent structural inspections and barred condo associations from postponing repairs, all of which has added significantly to HOA fees, experts have said.

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