The rising cost of living in older, once affordable condominiums has sparked a crisis in Florida’s real estate market.

Condo owners across the state are scrambling to sell to avoid rising insurance rates and special assessments, but buyers aren’t biting.

Sales are down nearly 15% compared to last year. That’s according to April data from Florida Realtors. The outlook is even bleaker in the Tampa Bay metro area, where sales fell 20%.

It’s been nearly four years since the Champlain Tower South condo collapsed in Surfside, killing 98 people. The South Florida disaster prompted lawmakers to strengthen safety inspections for older condos and require associations to save for routine maintenance.

But those changes have led to hefty special assessments and skyrocketing insurance premiums in many buildings, said Dimitri Karides, a broker associate with Sand Key Realty in Clearwater Beach.

“People are waiting on pins and needles to see what the next budget is going to look like, what the next assessment will be,” he said. “Sellers are realizing they might want to spend their money elsewhere.”

Cash-strapped owners are dumping their homes on the market and some are even selling at a loss.

Residents of Springbrook Gardens, a three-story, 18-unit condo building at 125 N Birch Road in Fort Lauderdale were notified by City of Fort Lauderdale officials on Wednesday that due to an unsafe building foundation, they would have to evacuate by Friday.

 

Inventory is up more than 34% compared to last year. The median time it takes for a condo to sell is 91 days. That’s up 10%.

 

All of that supply means buyers have the upper hand, said Daryl Fairweather, chief economist for the real estate firm RedFin. They’re negotiating lower sales prices and in some cases, getting sellers to cover the cost of pending assessments before they close.

The median sales price is now $335,000, a 6% drop from last year and a drop of more than 16% from April 2021, before the Surfside disaster.

Fairweather said prices could continue to decline through the end of the year as sellers come to terms with the diminishing value of their condos.