Florida’s housing market is experiencing mood swings. In some parts of the state, sellers are getting what they are asking; in other areas, sellers are cutting their prices to sell their homes.
Real Estate company Redfin reports that real estate inventory in Florida is on the rise.
Property along the Gulf of Mexico in western towns of the state, like North Port-Sarasota and Cape Coral, saw a 50% increase in the rising inventory of homes on the market.
However, on the eastern side of the state, cities like West Palm Beach saw an increase of only around 20%.
While some Florida homeowners are getting their “asking price” from buyers, Redfin says that in several markets in the state, they are seeing an increase of houses up for sale, and sellers are cutting their prices.
The top cities where sellers were cutting prices were North Port-Sarasota, Tampa, Orlando, Jacksonville and Cape Coral.
Redfin says the housing market in Florida has been overvalued for decades, and potential buyers can’t afford the current prices and are looking elsewhere, like North Carolina or Tennessee, for a better value.
The cost of property insurance is one of the reasons why buyers are stalling on their purchases.
An increasing number of seniors are putting their homes on the market because of rising property insurance rates.
With housing inventory on the rise, Redfin says sellers are cutting their prices for a couple of reasons.
More new homes are being built, and individual home sellers are finding it tough to sell because builders are offering concessions for customers, and sellers are seeing a longer wait before their home is sold.
Six Florida cities saw the largest year-over-year increases in supply, where North Port-Sarasota, FL (48%), Fort Lauderdale, FL (30%), Tampa, FL (29%), Orlando, FL (23%), West Palm Beach, FL (20%).
The five cities where sellers were most likely to cut their list prices were North Port-Sarasota (48%), then Tampa (44%), Cape Coral (41%), Orlando (35%), and Jacksonville, FL (33%).
“Out-of-town homebuyers no longer see Florida as a place to get amazing value. Now they’re moving to North Carolina or Tennessee to get a good deal. Many local blue-collar workers have been priced out of homeownership, too,” said Eric Auciello, a local Redfin sales manager. “
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