(NewsNation) — Florida was a red-hot destination during the pandemic, but now, the state is home to some of the fastest-cooling housing markets in the country.
Western Florida cities like North Port, Tampa and Cape Coral have seen inventory surge more than 60% over the past year, and houses are taking longer to sell, according to a new Redfin analysis.
The rise in supply and drop in demand has led roughly 40% of home sellers in those cities to slash their asking price. In April, the median time a Florida home spent on the market was 53 days, up nine days from the year before.
The Sunshine State slowdown marks a return to pre-pandemic inventory levels in several Florida cities where housing prices have shot up faster than the national average in recent years.
Redfin said the growing prevalence of natural disasters — which has led to higher home insurance costs — is discouraging homebuyers and impacting the region’s real estate market.
The good news for buyers is that a surge in new construction has also helped cool competition. Florida is building more new homes than every state except Texas, which has helped prices moderate.
“More supply is the best way to bring down prices and combat the housing affordability crisis buyers are facing today — and that’s exactly what’s happening in parts of Florida,” Redfin Senior Economist Elijah de la Campa said in a statement.
The challenge for sellers is that the rise in new supply has coincided with elevated mortgage rates, which have suppressed demand in cities across the country. Homebuilders have been able to offset some of the slack by offering more incentives like price reductions and credits for closing costs.
A recent survey of real estate agents also pointed to a slowdown in Florida. Just 30% of resale agents in Southern Florida said buyers outnumber sellers in their market, according to John Burns Research and Consulting. Nationally, 76% of real estate agents said buyers outnumber sellers. In the Northeast, that share jumps to 94%.
Those geographic differences were reflected in Redfin’s report, which showed several markets in the Northeast remain hot. Compared to a year ago, inventory is down, and prices are up in Rochester and Buffalo, New York. Multiple New Jersey cities are also among the hottest housing markets today.
Redfin calculated the nation’s fastest-cooling housing markets from April 2023 to April 2024 based on the year-over-year change in prices, price drops, inventory, the sale-to-list ratio and the share of homes that went off the market in two weeks.
The nation’s fastest cooling housing markets, according to Redfin:
- North Port, Florida
- Tampa, Florida
- Cape Coral, Florida
- Orlando, Florida
- Denver, Colorado
- Houston, Texas
- Minneapolis, Minnesota
- Jacksonville, Florida
- Lakeland, Florida
- Dallas, Texas
