There’s no question the pandemic and lockdowns throttled the world’s economy and negatively impacted many industries across the United States. The Sunshine State real estate market, however, experienced a major boost.

Florida’s population grew by over 1.5 million people from 2020 to 2024, and many of those were homebuyers, including Florida residents, transplants from other states and international buyers.

Florida’s real estate market was a seller’s dream during 2020 and into 2022—high demand and not enough inventory to meet it. Properties routinely had multiple offers—often over the asking price—and many sold without the buyer even touring the home in person. 

Florida home values skyrocketed approximately 80% over the past five years. At the end of 2024, the median price for a single-family home was $411,000, down from a Sunshine State all-time high of $430,000 in April 2024.

Stabilization and growth

Positive trends in the Florida market are expected to continue, but not at the frenetic pace we saw during the pandemic and immediately afterwards. 

People tend to forget that in the 1980s, interest rates soared as high as 18.63%, which makes the current high rate of 7.79% seem almost reasonable. 

People remember that rates were as low as 2.65% as recently as January 2021. Although the Fed finally dropped mortgage rates last year, they’re still hovering around 7%. Rates are predicted to gradually decline in 2025 if inflation eases as anticipated. 

Florida’s current housing market reflects both stabilization and growth. Inventory has increased to the point that by December 2024, there was a 4.8-month supply of single-family homes. This means there are enough houses on the market to satisfy current demand for nearly five months.

The tide has shifted. Buyers have more options to choose from, which can mean more negotiating power.

“It’s a buyer’s market now. Properties are sitting on the market a little longer compared to the last two years when there were multiple offers and people buying sight unseen. Prices are a little more realistic now and buyers are more able to afford them,” notes Vivienne Cunningham, a realtor for 17 years who works with Preferred Real Estate Brokers and is current president of the REALTORS® Association of Lake and Sumter Counties (RALSC).

“It’s a great market for buyers. A lot of people complain about the interest rate being high, but I say, ‘Date the rate; marry the house.’ You can buy it now and then refinance when the rate comes down,” Vivienne says.

Because it’s taking longer, on average, for homes to sell, she says it’s crucial for sellers to price their homes realistically.

Vivienne explains that the listing agent does a market analysis of homes sold in the area, and provides this information to the seller, who then makes the final decision regarding the listing price.

“Sellers usually think their house is worth more than it is and think a buyer will just negotiate, but buyers will walk and find another property if they think it’s priced too high,” she adds.

Seller and buyer agents

A residential real estate transaction usually includes two real estate professionals—one for the seller, one for the buyer.

The seller works with a listing agent/broker who will represent them and is responsible for marketing and listing the property. They negotiate the commission to be paid upon sale of the home. If the commission is to be split between the listing agent and the buyer’s broker (a common arrangement), this is stated in the agreement. Both the listing agent and seller sign that agreement.

The buyer is represented by a buyer’s agent/broker.

Florida prohibits dual agency, which is when a real estate agent represents both the buyer and seller in a property transaction. Why? Because dual agency can create a conflict of interest. 

“However, Florida does allow an agent to serve as a transaction broker or single agent. With a transaction broker relationship, the agent works for the transaction, not the buyer or seller,” notes RALSC CEO Steve McDonald. 

“Consequently, the agent in this relationship remains a neutral party. In a single agency relationship, the agent represents only one party in a transaction. Additionally, a Florida agent should always confirm with their principal broker as to company policy on these issues,” he clarifies.

Compensation

To ensure a smooth transaction, both buyers and sellers should understand exactly how real estate agents are compensated for their work.

Real estate agents are independent contractors who are typically paid by commission rather than salary. Commissions are deducted from sale proceeds and distributed by the escrow company handling the transaction.

“Commissions can vary by state or company because commissions are, and always have been, negotiable. Commissions and compensation to an agent are all negotiable. There is no standard commission,” Steve explains.

Although there is no standard commission, it can start as low as 1%, depending on what the seller and listing agent negotiate and agree on.

Compensation can be shared between the listing agent and the buyer’s agent, but the commission split can vary. The precise terms of compensation are detailed in the listing agreement. If a seller doesn’t want to offer compensation to the buyer’s agent, then the buyer is responsible for that commission.

“Any compensation provided will be listed on the settlement statement and a check will be made to the brokerage to disperse,” Steve says.

What happens if a home doesn’t sell, or the seller changes their mind?

People often don’t realize the expenses a listing agent is responsible for, including:

• Photography
• Marketing
• Staging
• Miscellaneous expenses, such as lawn and pool service, if owner is out of state or unable to address them

“Listing agents pay all these expenses out of their pocket until they get reimbursed. These expenses are a separate fee or can be negotiated in the commission. Everything is negotiable between the seller and their listing agent,” says Vivienne, adding that these details are agreed upon and specified in the listing agreement.

Steve points out that sellers may pay for marketing or other expenses the agent and seller agreed to if a seller takes their home off the market before the listing period ends.

Buyer Broker Agreement

Following a $418 million class action lawsuit last year, the National Association of Realtors agreed to new rules regarding agent compensation. In keeping with the new regulations, compensation is no longer visible on the Multiple Listing Service. Buyer agents must now have a written agreement with buyers to ensure transparency of fees and costs.

This Buyer Broker Agreement (BBA) must be signed up front whenever an agent offers services to a buyer. Those services may include lining up potential properties, arranging home tours, negotiating and presenting offers on the buyer’s behalf. (A BBA doesn’t apply to open houses.)

While the listing agreement states the agreed upon commission that the seller pays, the BBA specifies any commission the buyer will pay to the buyer’s broker.

Vivienne believes the rule changes clarify things for buyers.

“I see this as a change for the good. Many other states were already doing this, so now Florida is doing it and it’s nationwide,” Vivienne says. “Now it’s transparent and the seller signs an addendum saying the commission is split between the listing broker and buyer’s broker.”

The updated BBA is meant to add transparency with agents’ roles and commissions clearly specified.

“In the past, sellers paid all commission, not the buyers. Now a buyer can pay as well and it has to be transparent where it’s coming from,” Vivienne says. “This doesn’t happen often, but it could happen if a property had lots of interest, and a buyer could say they’d pay the commission in order to get it.”

“A buyer’s agent can and should discuss compensation with a client or customer,” notes Steve.

One thing is certain: Florida’s real estate market isn’t going back to how things were pre-2020. The more information buyers can access ahead of time, the more likely they are to find the property of their dreams.

“Buying or selling a home isn’t just about today—it’s about shaping your future,” Vivienne says. “Every decision, from location to timing, impacts your lifestyle, wealth and happiness for years to come. Think beyond price tags and trends. Consider the life you’re building. A home isn’t just an investment; it’s where memories are made, and dreams are nurtured. The right time to move? When your future demands it.”

Photos: Provided