Housing markets on Florida’s west coast are cooling faster than anywhere else in the U.S. due to a construction boom, natural disasters, and high insurance costs. This surge in supply is reducing competition at a time when high housing costs and insurance premiums are already discouraging buyers.
- Rapid Cooling in Western Florida:
- North Port, Tampa, and Cape Coral are experiencing the fastest cooling, with significant increases in home listings and price drops.
- North Port’s home supply is up 68% year-over-year, with 42.6% of sellers dropping their prices. Cape Coral’s inventory is up 64%, with 37.5% of sellers reducing their prices.
- Factors Contributing to Cooling:
- Natural Disasters: Frequent hurricanes and floods are damaging homes and scaring away buyers.
- New Construction: Florida leads in new home construction, adding to the oversupply.
- High Insurance Costs: Natural disasters have driven up home insurance premiums, with many homeowners seeing significant increases.
- Soaring Home Prices: Despite recent price drops, home prices in some areas like North Port and Tampa have increased significantly since 2019, making homes less affordable for many locals.
- Impact on Homebuyers and Sellers:
- The increase in supply is good news for buyers, offering more choices and potentially lower prices.
- Sellers may struggle to get their desired prices due to the rising competition.
- Contrasting Markets:
- While Florida’s west coast cools, housing markets in western New York (Rochester and Buffalo) are heating up due to their relatively low prices and high demand.
Redfin Data Highlights:
- North Port, FL: Median price per square foot down 1.2%, 42.6% price drops, inventory up 68.2%.
- Tampa, FL: Median price per square foot up 3.7%, 43.1% price drops, inventory up 62.9%.
- Cape Coral, FL: Median price per square foot down 2.9%, 37.5% price drops, inventory up 64.1%.
Natural disasters, high insurance costs, and an oversupply of new homes are significantly cooling housing markets on Florida’s west coast, making it a challenging environment for sellers but a potential opportunity for buyers.
Thanks for reading,
Chris
