Florida's Smaller Markets Adjust as Conditions Shift Toward Buyers
- veronicagabor
- Oct 27
- 4 min read
The real estate landscape in Florida’s smaller markets is undergoing a significant shift, moving from the seller-dominated environment of recent years to one that increasingly favors buyers. This trend is especially apparent in communities like Okeechobee, where changing market dynamics are influencing how both buyers and sellers approach transactions.
Okeechobee County has seen average days on market nearly triple compared to last year, mirroring broader changes across Florida’s interior regions. The community, located in the center of the state about an hour from the coast, offers a clear example of how smaller markets are responding to new conditions.
Market Fundamentals Undergoing Change
The pace of change has been notable and swift. “We’ve gotten a lot more houses for sale on the market, and there’s so many more people listing their house,” says Veronica Gabor, a real estate broker with Florida Quality Real Estate, who has worked in the Okeechobee market for years. “We’re seeing the prices drop a little bit. So they’re coming in at a lower price point.”
This increase in inventory aligns with a national pattern where the number of sellers now outpaces buyers. “I think they said yesterday in the US, there are 500,000 more sellers than there are buyers right now,” Gabor notes. “So that shift, you can definitely feel that shift. They have more of a choice, and sellers have to adapt.”
The adjustment has proven challenging for many sellers, especially those who became accustomed to the rapid sales and high prices of the post-pandemic boom. Many homeowners still expect to receive prices reminiscent of peak market conditions. “The sellers have the mindset, I mean, rightfully so. It’s been such a long time, but they have the mindset that it’s still up above,” Gabor says.
Strategic Adaptations in Pricing and Incentives
Rather than relying solely on price reductions, agents are using more targeted strategies to attract buyers. Gabor has observed that offering seller credits toward closing costs or interest rate buydowns tends to be more effective than just lowering the listing price.
“We’re seeing more of a response from buyers to do something like a seller credit towards closing costs or buying down the rate, and that seems to have a better response than just lowering the price,” she explains. “A lot of people can afford that $5,000 above in a price range, but coming out of pocket, they can’t afford the upfront cost.”
This approach demonstrates an understanding of buyer needs in the current interest rate environment. Homes that would have sold within days during the peak now require more thoughtful positioning and realistic expectations.
Migration Patterns and Market Drivers
Okeechobee remains attractive as a more affordable option compared to coastal areas, continuing to draw buyers from higher-cost regions of Florida. Property values and insurance costs along the coast are often much higher than those in interior communities, driving migration inland.
“We have a lot of people coming from the coast. The price of houses over there and the price of insurance taxes are much higher, and that’s why I think a lot of people are moving here and then commuting,” Gabor says.
At the same time, Okeechobee also experiences outbound migration among certain groups. “We are seeing a lot of the 55 and over being a huge community that’s moving back up north,” she notes, with cost of living and policy changes among the reasons cited.
Construction and Inventory Dynamics
New construction has become a significant factor in the local housing market, with developments often offering competitive pricing that rivals or even undercuts existing home values. “The cost for a new build is either very comparable or sometimes even better than an existing home right now,” Gabor observes.
This trend puts pressure on sellers of existing homes but gives buyers more choices. However, new homes typically come with smaller lots, which may not appeal to those seeking more land, a key consideration in rural communities like Okeechobee.
Insurance Considerations
Florida’s insurance challenges affect the entire state, but interior markets like Okeechobee generally enjoy lower hurricane risk compared to coastal areas. “Our average insurance, I think, is pretty decent compared to a lot of different places,” Gabor notes. “By the time a hurricane gets to us, they’re just usually very diminished from what they were since they went over land.”
The area’s insurance advantage, coupled with lower property taxes, enhances its appeal to buyers who are mindful of total homeownership costs, particularly those relocating from more expensive coastal markets.
Professional Challenges in Smaller Markets
Working as a real estate professional in a smaller market brings its own set of challenges. Despite its modest population, Okeechobee supports a large number of real estate agents, increasing competition. “We have a ton of real estate agents here. So being that it’s a smaller market, you have to be good at what you do,” Gabor explains.
This competitive landscape has prompted many agents to broaden their service areas or specialize in particular property types or client segments. Expanding into multiple counties is often necessary to maintain a steady flow of business, while others develop expertise in niche markets.
Looking Forward
The current market adjustment in Florida’s smaller communities appears to be settling into a new equilibrium rather than being a temporary correction. Market participants who adapt their strategies, by focusing on realistic pricing, creative financing solutions, and thorough client education, are best positioned for success.
For buyers, the increased inventory and greater negotiating leverage represent some of the most favorable conditions in recent years. Buyers can explore more options, negotiate incentives, and take time to make decisions rather than rushing into bidding wars.
For sellers, achieving a successful transaction now depends on competitive pricing, strategic incentives, and patience with longer listing periods. Those who recognize the new realities and adjust their expectations are more likely to attract serious buyers.
As Florida’s smaller markets continue to evolve, communities like Okeechobee illustrate how local factors such as geographic advantages and community character, can provide resilience in the face of broader market shifts. Adapting to these changes and leveraging local strengths will be essential for both buyers and sellers moving forward.
The evolving landscape in Florida’s smaller markets demonstrates the importance of flexibility and awareness of local trends. While the days of rapid sales and escalating prices may be over for now, the current environment offers new opportunities and challenges. By understanding the shifting dynamics and responding with informed strategies, market participants can navigate these changes and achieve their real estate goals.
Written by: Steve Marcinuk Date: 24 Oct 2025
Comments