Florida’s housing boom has now shifted into reverse, with prices sliding by the most in at least 13 years.
The median price for all types of homes fell 1.7% in March from a year earlier, according to Redfin Corp. data going back to 2012.
The post-pandemic influx of out-of-state buyers has faded, pressuring demand. Home sales have fallen. Inventory is now at a record high in the data going back to 2012. Rising insurance costs and high mortgage rates have strained affordability.
The state’s condo market has also been buckling under soaring costs and new requirements for the upkeep of aging buildings. The cost of owning a condo has skyrocketed after the state began requiring more inspections and adequate reserves for repairs in the wake of the 2021 Surfside collapse. Many people trying to sell units are struggling because of special assessments to cover expensive maintenance.
“A lot of it is driven by the condos, but it seems that the single-family market is also weakening,” said Redfin senior economist Sheharyar Bokhari. “The pandemic rush to Florida is dying down, and with mortgage rates being so high and staying high, it makes it really unaffordable for people paying for those high prices.”
For a condo or co-op in Florida, the median price fell about 7% in March to $307,500. The price for a single-family home was down about 2%.
Written by: Prashant Gopal @Bloomberg
The post “Florida Home Prices Post Biggest Decline in at Least 13 Years” first appeared on Bloomberg