Florida Homeowners Struggle to Sell Their Houses

Homeowners in some Florida cities are finding it harder to sell their homes as data shows that an increased number of listings are sitting on the market for more than 30 days.

The housing market in the Sunshine State experienced a boom during the COVID years when people from other parts of the country flocked to its cities, driving a surge in home sales. But now more and more homes are sitting as mortgage rates and high prices limit buyers. Meanwhile, soaring insurance fees are also dissuading potential buyers from purchasing property as they add more costs to owning a home.

Read more: Tips to Help Sell Your Home for the Highest Price

Some Florida cities are seeing the number of homes spending additional days on the market grow more than any other area apart from Dallas, according to real estate platform Redfin, with oversupply and escalating weather-related disruptions to blame for the slowdown. Fort Lauderdale, Tampa and Jacksonville saw listings that stay on the market for at least a month rise compared to last year.

Single-family homes in a residential neighborhood on October 27, 2022, in Miramar, Florida. Homes in some cities in the state are staying on the market longer.

Joe Raedle/Getty Images

“Inventory is growing stale fast in Texas and Florida largely because those states are building far more homes than anywhere else in the country, contributing to rising supply, and because some homebuyers are nervous about the increasing prevalence of natural disasters,” Redfin said in its analysis.

The development reflected what is happening across the country, with close to 62 percent of homes on the market for at least 30 days, a near 12 percent increase from two years ago, according to Redfin. Meanwhile, about 40 percent of listings in May had been on the market for at least two months, up more than 12 percent from two years ago.

Mortgage rates, which are nearly double what they were just four years ago, and record high prices mean buyers are being extra selective in what type of properties they choose to invest in.

“The share of homes sitting on the market for at least one month has been increasing year over year since March, when growth in new listings accelerated but demand from buyers remained tepid, as it has been since mortgage rates started rising in 2022,” Redfin said. “More homes for sale paired with slow demand means that less-desirable listings are piling up, leaving some of them without a buyer.

“Redfin agents report that move-in ready homes in desirable neighborhoods are still selling quickly, but listings that don’t fit that bill are starting to pile up in some parts of the country.”

Mortgage rates are expected to remain elevated as the Federal Reserve chose to keep borrowing costs higher for longer during their meeting this week. On Wednesday, the Fed shifted its outlook regarding when it might begin to reduce rates, which are at two-decade highs, a development that experts said could put upward pressure on mortgage rates.

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