Home for Sale in Florida — Courtesy: Shutterstock — Andy Dean Photography
It looks that the Sunshine State of Florida’s COVID-19 epidemic real estate market is fading.
According to Realtor.com®’s December 2024 Monthly Housing Report, a large number of homes were listed for longer than usual.
According to the Realtor.com research, the average home was on the market for 70 days in December of last year, which is nine days longer than it was at the same time last year and eight days longer than it was the month before.
This December is the slowest since January 2023 and the slowest since 2019. Additionally, homes have been on the market longer than they were a year ago for the ninth consecutive month.
The survey found that although the Northeast and Midwest experienced inventory declines of at least 5.6%, the South saw a 4.8% increase in newly listed homes.
The rise in newly listed properties added to the nation’s total amount of available inventory. Compared to 2023, there were 22% more residences available nationwide in 2024.
Florida for sale
The top four Florida cities with the most inventory that has been on the market for more than ninety days were determined by Realtor.com:
New Smyrna Beach
Number of properties on the market: 651
Median days on the market: 95
Median list price: $499,675
Palm Coast
Number of properties on the market: 1,136
Median days on the market: 94
Median list price: $417,925
Panama City
Number of properties on the market: 825
Median days on the market: 94
Median list price: $342,102
Gainesville
Number of properties on the market: 602
Median days on the market: 91
Median list price: $305,950
Inventory increases
“In the winter, the housing market tends to slow seasonally, and buyers and sellers focus on the holidays,” says Hannah Jones, a senior economic research analyst at Realtor.com.
But there was a slight shift this year.
Jones continues, “Warm markets saw inventory pile up and market pace slow more than was typical nationally, especially in Florida.” “Over the past year, the South has seen an increase in inventory and a slowdown in market pace as buyers remain cautious due to the high cost of homes and mortgage rates.”
In an effort to meet the growing demand from tourists who were traveling to their warmer coastlines, Florida and Texas both set the pace for new building during the pandemic.
According to Home Builders Weekly, which keeps tabs on Florida’s new construction projects, the number of new construction permits increased by 10% in 2024, with Northeast Florida experiencing a 25% increase.
An increase in interest rates
Prospective purchasers have been reluctant to enter the market because 30-year fixed rates are now around 7%. Since their borrowing rates are so much lower, many have been essentially “locked in” to their present residence.
According to a recent Realtor.com analysis, 83% of mortgages have a rate of 6% or less.
Thirty-three percent of those mortgages have interest rates between 3% and 4%, 18.1% have rates between 4% and 5%, and at least 21.3% have rates locked in below 3%.
This implies that the pool of buyers for new built homes on the market is just smaller than it was a few years ago.
Severe weather conditions
Hurricanes Milton, Helene, and Debby all hit Florida’s coasts last year, inflicting flooding, extensive devastation, and billions of dollars’ worth of property damage. Many of the most severely impacted people lacked flood insurance.
In September, Tony Barrett, president of the Realtor Association of Sarasota and Manatee, told the New York Post, “Recent storms not only left behind devastation but also spooked potential buyers, delaying transactions and driving down confidence.”
Hurricane Debby, which soaked the coast in August, and Hurricanes Helene and Milton, which arrived in the fall and left devastation in their wake, further exacerbated the disarray. The formerly frantic market is slowing down as investors retreat and insurance costs skyrocket.
Texas suffered $200 billion in damage as a result of Hurricane Beryl, intense heat, tropical cyclones, and drought.
The cost of home insurance has increased as a result of all the severe weather.
The average yearly cost of homeowners insurance nationwide, with a $300,000 coverage maximum, is $2,300, per Bankrate. At $5,527, the average cost in Florida is more than double that amount.
According to statistics from the 2023 American Community Survey, Louisiana, Texas, and Colorado are the other states that at least 10 percent of homeowners pay more than $4,000 per year.
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Born and raised in South Florida, Krystal is a recent graduate from the University of Miami with professional writing experience at the collegiate and national news outlet levels. She’s a foodie who loves all things travel, the beach, & visiting new places throughout Florida.