HousingWireHousingWire
Florida was one of the hottest destinations during the pandemic, but the state’s housing market might be coming down to earth.
According to a report from Redfin, for-sale inventory at the end of January in Florida was up 22.7% year over year. At 172,209 homes, it’s the highest reading of any month dating to when Redfin started keeping records in 2012.
Active listings landed at 212,437 at the end of January, a staggering 19.4% year-over-year jump. Redfin agents in the state say that it’s now a buyers market where sellers have to make concessions to bring buyers to the table. However, mortgage rates staying stubbornly around 7% are preventing many would-be buyers from entering the market.
“Bidding wars are very rare these days,” said Jacksonville-based agent Bryan Carnaggio in a statement. “With this many houses for sale, a home basically needs to look like it’s out of a magazine—and be priced fairly—to get multiple offers.”
Redfin attributes the rise in inventory to several factors. Homebuilding has surged in Florida, resulting in additional supply. Natural disasters like Hurricane Milton have caused home insurance rates to surge and many homeowners left the state as a result.
The condo market has also contributed, as many owners are looking to sell because of rising HOA dues. Those dues are up because of regulation related to structural concerns that followed the Surfside condo collapse in 2021.
Eight of Florida’s metropolitan markets have record-high active listings. They are Cape Coral, Deltona-Daytona Beach, Homosassa Springs, Lakeland, North Port-Sarasota, Ocala, Port St. Lucie and the Villages.
Palatka (34.3%), Wauchula (32.8%) and Naples (28.6%) have the highest year-over-year increases in active listings. The major markets of Fort Lauderdale (27.2%), Orlando (24.5%), Miami (23.4%), Tampa (17.3%), Jacksonville (15.7%) and Key West (12.6%) are also elevated.
