Florida Housing Market ‘Getting Crazy’ as Inventory Triples

The jump in listings of homes for sale in Florida points to a market that is about to experience price declines and sellers entering the market, a real estate analyst pointed out on Tuesday.

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Nick Gerli, CEO and Founder of real estate analytics firm Reventure Consulting, pointed out in a series of posts on X, formerly Twitter, that housing prices in the Sunshine State could be on the way down.

“This housing market downturn in Florida is getting crazy,” Gerli said in a post. “There’s ZIP codes where inventory has nearly tripled from its level last year.”

He went on to say that the rise of listings was a “sign of a major selloff. And indicates prices are likely to drop in the [second half of this year.]”

Newsweek contacted Gerli for comment via email on Tuesday.

Florida’s housing market experienced a boom during the pandemic as migrants from other parts of the country moved to the state. Lockdowns and stay-at-home orders instituted to stop the spread of the coronavirus gave workers the flexibility to work remotely and some moved to Florida in chase of warm weather and cheaper taxes.

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That dynamic created above-than-normal competition for homes that helped push up prices as the new residents snatched up homes and ratcheted up demand for properties.

But four years later, the migration of new residents to the state has slowed and interest in homes from buyers has cooled amid historically high mortgage rates. Florida also has struggled with soaring homeowners insurance costs that are dissuading potential buyers and leading to some homeowners looking to sell their homes and move.

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Last week, real estate platform Redfin revealed that some major cities in Florida are seeing their listed homes spend more time on the market than last year. Fort Lauderdale, Tampa and Jacksonville all saw a rise in homes that linger unsold for at least a month compared to 2023.

“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.

Meanwhile, prices are starting to fall. After the median listing price in Florida soared to more than $493,000 in June 2022, they have fallen to $450,000 in what is the lowest value for a home in the state in more than two years, according to Federal Reserve Economic Data.

Single family homes are shown in a residential neighborhood on May 10, 2022 in Miami, Florida. The housing market has cooled in the state.

Joe Raedle/Getty Images

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