Florida sellers who bought during the market's run-up are finding that a sale can mean taking a loss.
More than half of the homeowners in several Northeast Florida counties who purchased in 2022 or 2023 and have already resold did not recover their costs once estimated buying-and-selling expenses were included.
St. Johns County stood out, with over 70% of those homeowners losing money, WJXT reported.
Here's what to know
A Momentum Realty review of more than 2.3 million homes across Florida found that St. Johns County posted the state's largest share of resale losses, according to WJXT.
The firm compared each home's sale price with an earlier sale of the same property using records going back to 2001, and it estimated purchase-and-sale costs at about 8%.
Losses were especially common among owners who bought in 2022 or 2023 and later sold: 70.6% in St. Johns County, 70.3% in Flagler County, 55.3% in Clay County, 54.2% in Nassau County, and 52.9% in Duval County.
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Jon Brooks, market analyst and co-founder of Momentum Realty, suggested that the numbers reflect a sharp slide after 2020, which he described as the safest point to buy.
"The last worst time to purchase a house was actually in Florida was 2006," he began. "2020 was actually the safest time to purchase a house. And then it got worse every single year. Now, 2023, according to the data, is the worst year to have purchased a house in the state of Florida."
Not every buyer from 2022 or 2023 is underwater.
The analysis includes only homes that have already been resold, not owners who are still holding onto their properties.
More background
Florida's housing market became one of the clearest symbols of the pandemic-era homebuying boom. Home prices surged, and many buyers seemed to believe those gains would continue.
Brooks noted that the assumption became a problem once market conditions started to shift.
"People were seeing prices go up 10, 12, 15 percent every single year for several years, and people thought that trend would continue," he said.
Another pressure point for some resellers is the supply of new homes nearby.
Builder incentives, including mortgage-rate buy-downs, can make it harder for nearby existing-home owners to sell at a profit.
"It wasn't necessarily somebody who bought a new construction home. It was someone who bought a 2010 to 2018 built house near new construction in St. Johns County that now has to compete with the builders when they go to sell," Brooks explained.
What can be done?
How long someone stays in a home can play a major role in whether a seller eventually comes out ahead.
The Momentum Realty analysis included estimated transaction costs, which can wipe out a small gain and turn it into a loss.
A lower mortgage rate or help with closing costs can significantly change the math, and that can influence resale values for nearby homes, too.
Where can I learn more?
These resale losses are part of a bigger squeeze in Florida.
Rising insurance costs, climate risk, and worsening affordability are putting even more pressure on homeowners who need to sell in a market that no longer supports pandemic-era prices.
• Across Florida, insurance companies raising rates are forcing homeowners to sell their homes.
• Florida residents are also facing a crisis as insurers drop policies and options disappear.
• Nationwide, climate and insurance risk are starting to reshape what homes can fetch.
These cases can help to help explain why some Florida owners who bought near the peak are struggling to break even. It's also a reminder that holding costs and local risk can matter almost as much as the sale price itself.
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