What Florida Real Estate Professionals Should Expect in 2026

The housing market is entering a new phase in 2026. Mortgage rates have declined from their recent highs, inventory has increased, and buyer behavior is shifting. For Florida real estate professionals, developers, and investors, understanding these trends is critical to making informed decisions in the year ahead.

Mortgage Rates: Lower, But Not Low

Mortgage rates have fallen in recent months, providing some relief to buyers who faced rates above 7% for much of 2024. Zillow forecasts that rates will struggle to break below 6% in 2026, settling slightly lower than current levels but remaining well above the historic lows seen during the pandemic.

This moderate decline is expected to expand the pool of qualified buyers. The National Association of REALTORS estimates that a drop to 6% could qualify an additional 5.5 million households nationwide to purchase homes. For Florida markets, where demand has remained strong despite affordability challenges, this could translate to increased transaction volume.

Home Price Growth: Minimal Gains Expected

After years of rapid appreciation, home price growth is expected to slow considerably in 2026. Zillow’s forecast calls for home values to end 2025 roughly flat, with modest annual growth of 1.6% by August 2026.

This shift offers buyers a chance to catch up. Instead of competing in a market where prices rise faster than incomes, buyers will have more time to rebuild savings and evaluate options. For sellers, the slower pace means pricing strategy becomes more important. Homes that are overpriced or poorly marketed may sit longer than they would have in prior years.

Buyers Gain Leverage

For the first time in several years, buyers have more leverage. Inventory has increased, competition has eased, and buyers can take more time to evaluate properties before making an offer.

However, upfront costs remain a significant barrier. Buyers need strong credit, pre-approval for financing, and a clear understanding of what they can afford. Florida buyers also face rising insurance premiums, which have surged 48% over the past five years. Climate risk and insurance instability are now factors that buyers must account for when evaluating properties.

Common Buyer Mistakes

One of the most common mistakes buyers make is starting the process by browsing listings before securing financing. Amanda Pendleton, Zillow’s home trends expert, notes that many first-time buyers fall in love with a home online, only to discover they cannot afford it or cannot secure financing in time.

Buyers should begin with financing, not home searches. Small differences in mortgage rates have a significant impact on affordability over the life of a loan. Pre-approval gives buyers clarity on their budget and strengthens their position when making an offer.

What Sellers Need to Know

Selling in 2026 requires strategy. Homes that are well-prepared, professionally photographed, and listed with digital tools such as 3D tours or floor plans tend to sell faster and for more money. Zillow’s research shows that listings with these features receive more views and saves.

Sellers should also ensure their homes are listed on the Multiple Listing Service immediately. Data shows that homes not listed on the MLS sell for a median of 1.5% less than those that are. Maximum exposure leads to better outcomes.

AI and the Future of Real Estate

Artificial intelligence is becoming a more prominent tool in real estate transactions. Buyers can now use AI platforms to search for homes based on budget, location, and specific features. The Zillow app in ChatGPT, for example, allows users to ask questions like “What two-bedroom homes can I afford nearby?” and receive listings complete with photos, maps, and pricing.

AI is making the home search process faster and more personalized. As the technology continues to improve, it is expected to streamline other parts of the transaction process as well.

Partner with James Moore for Strategic Real Estate Guidance

Florida’s real estate market is shifting, and professionals who adapt to these changes will be better positioned for success. Whether you’re managing a portfolio, planning a development, or advising clients, our team can help you make decisions backed by data and experience.

At James Moore, we work with real estate developers, investors, and fund managers to address the financial, tax, and operational challenges that come with market transitions. From cost segregation studies to portfolio accounting and tax strategy, our advisors bring practical solutions to complex problems.

Connect with our real estate team to discuss how we can support your business in 2026.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.