Once a red-hot destination for out-of-state homebuyers, Florida is seeing its inventory of homes for sale skyrocket and price growth stagnate.

"Florida is very unique," Redfin's chief economist Daryl Fairweather told CNBC's "Last Call" on Wednesday. "It was one of the only markets that actually sustained price growth after interest rates went up, so I think this correction is a bit overdue."

According to Redfin, the median time a Florida home spent on the market was 57 days in March. Two years earlier, that time span was just 24 days.

"It's also coming at a time when HOA (homeowner association) fees are going up and insurance costs are going up, and people don't want to pay these higher property taxes," Fairweather said. "More new listings are coming on the market right now, too."

There are more than 5,600 active listings in Florida that include the keyword "motivated" in the description on Zillow.