Housing Markets on Florida’s West Coast Are Cooling Faster Than Anywhere Else in the U.S., With Supply Rising and Demand Falling
Meanwhile, housing markets in
North Port’s housing market is cooling fastest, followed by
This is according to a Redfin analysis that ranks the 100 most populous
Measures of homebuying demand and competition are dropping off quickly in
There are several reasons housing markets on the west coast of
-
Increasing intensity of natural disasters: Hurricanes, floods and other severe weather events have become more frequent and intense in
Florida . Destruction from climate disasters costFlorida more money than any other state (tied withTexas andLouisiana ). In theCape Coral metro alone, 2022’s Hurricane Ian destroyed 5,000 homes and damaged nearly 30,000 more. Natural disasters are not only destroying homes—which is one contributor to a surge in new construction, as builders replace homes that have been lost—but they’re scaring away some prospective homebuyers from the area. -
A surge in new construction:
Florida is building more new homes than any other state in the country (aside fromTexas , which is also home to two of the nation’s 10 fastest-cooling housing markets), a building boom coming at a time when high prices and mortgage rates are dampening homebuying demand. The oversupply of inventory is cooling competition. -
Sky-high insurance costs: Natural disasters have pushed up Florida’s home insurance costs. Many homeowners are reporting their insurance jumping by thousands of dollars, and a recent Redfin survey found that 70% of
Florida homeowners have seen home insurance costs rise recently. -
Soaring home prices: Although prices in some parts of
Florida have started declining in recent months, homes are much costlier than before the pandemic homebuying boom, when many affluent remote workers moved in and pushed up prices.North Port prices are up about 60% since 2019, andTampa prices are up nearly 70%—much bigger than the national increase of about 40%. Elevated prices and insurance costs, combined with today’s high mortgage rates, are pricing out many locals. They’re also discouraging some older Americans from moving into a state that has traditionally been popular with retirees.
“Inventory is back up to pre-pandemic levels along the west coast of
Housing-market data for the nation’s fastest-cooling metros
|
|||||||||
Metro area |
Median price per square foot |
Median price per square foot, YoY change |
Price drops |
Price drops, YoY change (in percentage points) |
Off market in 2 weeks |
Off market in 2 weeks, YoY change (in percentage points) |
Average sale-to-list price ratio |
Average sale-to-list price ratio, YoY change (in percentage points) |
Inventory, YoY change |
|
|
-1.2% |
42.6% |
6.6 |
31.1% |
-12 |
96.5% |
-0.7 |
68.2% |
|
|
3.7% |
43.1% |
8 |
39.2% |
-11.8 |
97.3% |
-0.5 |
62.9% |
|
|
-2.9% |
37.5% |
4.6 |
26.1% |
-11.7 |
96.3% |
-1 |
64.1% |
“Despite prices softening and the influx of listings, today’s local buyers face challenges with elevated mortgage rates, special assessments and the complexities of securing affordable flood insurance,” said
Housing markets in western
Homebuying demand and competition is heating up in
Housing-market data for the metros holding up best
|
|||||||||
Metro area |
Median price per square foot |
Median price per square foot, YoY change |
Price drops |
Price drops, YoY change (in percentage points) |
Off market in 2 weeks |
Off market in 2 weeks, YoY change (in percentage points) |
Average sale-to-list price ratio |
Average sale-to-list price ratio, YoY change (in percentage points) |
Inventory, YoY change |
|
|
11.5% |
15.5% |
1.2 |
84% |
4 |
113.2% |
2.7 |
-15.5% |
|
|
13% |
11.3% |
1.1 |
17.7% |
2.6 |
101.2% |
0.9 |
-11.3% |
|
|
15.2% |
22.2% |
1.3 |
73.7% |
3.4 |
104.4% |
1.5 |
-4.2% |
Rounding out the top 10 housing markets holding up best are several metros in the greater
To view the full report, including graphics and metro-level data, please visit: https://www.redfin.com/news/housing-markets-cooling-fast-florida
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Source: Redfin