Achi news desk-
Real estate inventory in parts of Florida is increasing to uncomfortable levels – and sellers are starting to cut prices, according to a report.
On Florida’s west coast, the number of homes for sale and the rate at which their current owners are slashing asking prices are soaring, according to a report by real estate firm Redfin released Thursday.
Redfin found that in the western parts of the state, which borders the Gulf of Mexico, inventory in Cape Coral and North Port jumped the most, about 50% year-over-year in March – more than any other US metro. . .
Trendy North Port-Sarasota saw homes for sale rise 48%, while the figure in upscale West Palm Beach, known to be home to rich snowbirds during the cold Northeast winters, rose a more modest 20%. .
Of the 10 cities where sellers are most likely to cut their list prices, only five are in Florida, including North Port-Sarasota – which had the highest share of listings lowering their prices in the country, at 48 % – as well as Tampa, Cape Coral, Orlando and Jacksonville, Redfin found.
In recent years, “the North Port metro was one of the most competitive housing markets in the country because it was affordable for remote workers and there was a shortage of homes for sale, but none of those things true today,” said Eric Auciello, Redgin’s sales manager in the report reported earlier by Fortune.
“Sarasota, in particular, has been overrated for decades, and the chickens have finally come to roost.”
As a result, many prospective homeowners have been priced out of Florida entirely, instead opting for North Carolina or Tennessee to get more bang for their buck.
“Out-of-town homebuyers no longer see Florida as a place to get incredible value,” Auciello added.
Part of the reason: an insurance crisis, according to Redfin, which has been throwing a wrench into home buying and delaying deals.
At the 11th hour, many buyers realize that they will not be attracted to affordable home insurance rates that the owners before them enjoyed.
Auciello – whose own home insurance is now $14,000 a year, up from about $8,000 two years ago – noted that “a large insurance bill… can be a very big problem for someone buying a home on the water on a smaller budget.”
Florida home insurance premiums in storms even have seniors increasingly worried that they won’t be able to hang on to their homes.
Homeowners insurance in Florida ranges from $1,700 to $2,700 per year based on $300,000 in dwelling coverage and $100,000 in liability coverage, according to US News.
The insurance is required for those seeking a mortgage, forcing many buyers to reconsider how much they are willing to spend.
In addition, existing HOA fees for condo owners have doubled in the past year amid the increased threat of hurricanes.
However, the state had a fairly mild hurricane season last year, with only Hurricane Idalia wandering through the less populated western region on September 1.
It caused damages between $3 billion and $5 billion.
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