Florida Real Estate Inventory Rises, Sellers Cut Prices

Real estate inventory in parts of Florida is reaching uncomfortable levels — and sellers are starting to slash prices, a report says.

On Florida’s west coast, the number of homes for sale and how quickly their current owners are dropping asking prices is skyrocketing, according to a report from real estate company Redfin released Thursday.

Redfin found that in the western parts of the state, whose coastline lies on the Gulf of Mexico, stocks in Cape Coral and North Port increased the most, by about 50% year over year. other in March, more than in any other metropolitan area in the United States. .

The trendy North Port-Sarasota neighborhood saw homes for sale increase by 48 percent, while the figure in upscale West Palm Beach, known for being home to wealthy snowbirds during the Northeast’s cold winters, rose by 20% more modestly.

Of the 10 cities where sellers are most likely to reduce their list prices, only five are in Florida, including North Port-Sarasota – which had the highest proportion of listings reducing their prices in the country, at 48%. – as well as Tampa, Cape Coral, Orlando and Jacksonville, Redfin found.

In recent years, “the North Port metro was one of the most competitive real estate markets in the country because it was affordable for remote workers and there was a shortage of homes for sale, but none This is true today, “Eric Auciello,” Redgin’s chief business officer said in the report previously reported by Fortune.

“Sarasota, in particular, has been overvalued for decades, and the chickens have finally come to roost.”

As a result, many aspiring homeowners have been priced out of Florida altogether, opting instead for North Carolina or Tennessee to get more bang for their buck.

“Out-of-town home buyers no longer see Florida as a place to get incredible value,” Auciello added.

Part of the reason: an insurance crisis, according to Redfin, which has put a damper on home purchases and delayed transactions.

At the eleventh hour, many buyers realize that they will not be grandfathered in to the affordable home insurance rates that homeowners before them enjoyed.

Auciello — whose home insurance now runs $14,000 a year, up from about $8,000 two years ago — noted that “a hefty insurance bill… can be a really big problem for someone one who buys a waterfront house on a small budget.”

Home insurance premiums in storm-stricken Florida have even seniors worried they won’t be able to keep their homes.

Homeowners insurance in Florida ranges from $1,700 to $2,700 per year, based on $300,000 of dwelling coverage and $100,000 of liability coverage, according to US News.

Insurance is mandatory for those shopping for a mortgage, forcing many buyers to reconsider how much they are willing to spend.

Additionally, existing HOA fees for condo owners have doubled over the past year due to the growing threat of hurricanes.

However, the state had a fairly mild hurricane season last year, with only Hurricane Idalia rumbling through the less densely populated western region on September 1.

This caused damages of between $3 billion and $5 billion.