Florida’s housing market is facing a storm as price cuts hit record levels, signaling potential price drops and posing challenges for both buyers and sellers alike.
Key Points:
- Price cuts in Florida have surged to their highest level since the Global Financial Crisis (GFC).
- In March 2024, 30.1% of all house listings in Florida experienced price reductions, indicating significant “selling pressure.”
- While many price cuts are small, the overall trend suggests a rapid softening in the market.
- Active listings in Florida have spiked to 132,000, up 57% YoY and 363% from two years ago.
- This dramatic increase in inventory mirrors patterns seen in markets like Austin and Boise before significant price drops.
- Florida home prices are currently about 30% “overvalued” compared to long-term norms.
- The Tampa-St Pete metro area, with prices 33% overvalued, is experiencing a surge in inventory and price cuts.
Source:
1) Now – many of these price cuts are small in nature. And overall price levels in Florida are still very high compared to pre-pandemic norms.
However, what we're watching for here is the trend. And the trend is showing a rapid softening in the market.
— Nick Gerli (@nickgerli1) April 5, 2024
Housing demand has cratered due to poor demographics and overpriced houses. pic.twitter.com/JxWGOe8Txg
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) April 22, 2024
So like everyone knows this is a leading indicator for construction and the housing market right t.co/2V7uDcPxyx
— Darth Powell 🦈🇺🇲🇺🇦🇵🇱🇫🇮 (@GRomePow) April 22, 2024