Why Is My Condo Worth Less Than It Was Last Year When Houses Are Going Up?
Short answer: it’s not just your condo. Florida Realtors’ own September numbers show condo prices falling across the state over the past year while house prices rose, in the same month, same state, same report. Nobody’s named a reason for that split, so I won’t invent one either.
What Actually Happened to Florida Condo Prices in September?
Florida Realtors released September and third quarter numbers October 16. The condo and townhouse median sale price statewide was $293,500, down 1.8 percent from $299,000 a year earlier. Single family homes went the other way: $415,000, up 1.2 percent, the seventh straight month of year over year gains. Same state, same month, two different markets.
Did the Condo Backlog Get Bigger or Smaller?
Smaller, which is the part that cuts against the easy explanation. Months supply of condo and townhouse inventory came in at 7.7 in September, down from 9.1 a year ago, a drop of 15.4 percent. Closed condo and townhouse sales were basically flat, 7,179 against last year, eight fewer closings statewide. New pending sales on condos were down 3.5 percent. None of that looks like a market drowning in unsold units. The price went backward anyway.
Is This Just a One-Month Blip?
Third quarter tells the same story stretched out. Condo and townhouse closed sales for the quarter were 22,664, up 3.1 percent, with a median of $295,000, unchanged from a year ago. Single family closed sales ran 65,904, up 0.2 percent, median $420,000, up 2.4 percent. Florida Realtors’ chief economist, Dr. Brad O’Connor, pointed to mortgage rates as “the biggest story for the housing market, not only in Florida but throughout the United States,” and called what’s happening “a housing market that has lost some momentum, but certainly hasn’t fallen apart.”
What Else Decides What a Lender Will Approve on a Condo?
The unit’s price is only half of it. Fannie Mae and Freddie Mac retired condo limited review on August 3, 2026, so a buyer who needs a loan now has to clear a full review of the whole association, not just the unit. That review looks at the association’s own finances and the estoppel figure, on top of whatever the unit itself is worth. A building that can’t clear that review is harder to sell no matter what the price does.
Why This Matters If You Owe More Than Your Condo Will Bring
If you owe more on a Florida condo than it would sell for, the only number that actually decides anything is what your specific unit closes at, and that number moved down over the last twelve months while the house across the street moved up. The price is the half most people watch. The building’s own finances and whether it clears a full lender review are the other half, and they can matter just as much to whether a sale happens at all.
In other news, a new national report puts a real number on how common a short sale actually is right now.
Can I Sell My House If I Owe More Than It’s Worth?
Yes. That’s what a short sale is: selling for less than you owe, with your lender’s sign off. And it’s a lot less common than most people assume.
What Does “Distressed Sales” Actually Mean in NAR’s Numbers?
The National Association of Realtors published September existing home sales data October 13. Buried in the detail: foreclosures and short sales together, what NAR calls distressed sales, made up 2 percent of September’s completed sales. That’s NAR’s own measure, foreclosures and short sales combined, as a share of homes that actually closed that month.
How Rare Is a Short Sale Really, Right Now?
Two out of every 100 closings in September were a foreclosure or a short sale. That’s the same 2 percent as August, and the same 2 percent as a year ago. Nothing here says fewer people are falling behind. It says the share of completed sales that end up distressed hasn’t moved. If you’ve been told the market is full of short sales and yours will just be one of a crowd, this is the number that says otherwise.
Who’s Actually Buying Right Now?
The buyer pool shifted more than the distressed share did. Individual investors and second home buyers made up 20 percent of September buyers, up from 15 percent in August and 15 percent a year ago. All cash buyers dropped to 27 percent, down from 30 percent a year ago. Median existing home price nationally was $417,500, up 1.3 percent, and the typical home sat on the market 33 days, up slightly from 31 in August. NAR’s chief economist, Lawrence Yun, said “further increases in mortgage rates in recent weeks mean fewer buyers can qualify to purchase a home.”
Why This Matters If You’re Behind on Payments
A short sale on your house is still an unusual listing, not one of a hundred identical ones. And the buyer pool looking at it just picked up more investors and second home buyers than it had a month ago. Neither of those facts decides what happens with your own loan. That comes down to your own paperwork, your own lender, and the options sitting in front of you.
Jacksonville, Florida is my market, and distressed property is the bulk of what I work. Happy to talk through where either of these lands for you.
JimArmstrong904@gmail.com, or (904) 671-4161 if a call’s easier.
Jim Armstrong, REALTOR® · Momentum Realty · SFR® (Short Sales and Foreclosure Resource) certified. This is general information, not legal, tax, or financial advice.
Momentum Realty is not associated with the government, and our service is not approved by the government or your lender.
