Housing markets; Home for sale — Courtesy: Shutterstock — Andy Dean Photography
As supply increases and demand declines, the home market in North Port, Florida, has cooled more than any other major U.S. metro, according to a Redfin analysis released on Tuesday.
According to the report, there is less demand for properties along Florida’s Gulf Coast as new construction projects flood the market, property prices fall, and natural disasters worsen and drive up insurance rates.
According to the research by Redfin Senior Economist Elijah de la Campa, “Inventory is back up to pre-pandemic levels along the west coast of Florida as natural disasters continue to shape the region’s housing market.” “After recent climate disasters, construction is booming, but as the region prepares for another intense hurricane season, there is less demand to buy new homes.”
Up to 25 named storms are predicted for the U.S. this summer by the National Oceanic and Atmospheric Administration, which would be a record.
In an analysis of the 100 most populous metro areas in the United States, North Port emphasizes the slowdown more than any other place. In April, there were 68 percent more properties available in the city than there were the previous year, despite a 1.2 percent decrease in the median price per square foot and a 42.6 percent increase in sellers willing to lower their asking price compared to 36 percent the previous year.
Redfin lists North Port as the fastest-cooling market, followed by the Florida cities of Tampa, Cape Coral, and Orlando. The only non-Florida city in the top five was Denver. Outside of Florida, other home markets that were contracting were those in Houston, Minneapolis, and Dallas.
In addition to costing Florida more money than any other state, severe weather damage has also raised insurance costs. According to a Redfin survey from April, 70 percent of Florida homeowners have lately noticed an increase in their home insurance premiums.
After Texas, Florida is the state with the second-highest volume of new home development. Although it is bad news for sellers, the surplus of available houses has given buyers the upper hand.
“For those looking to buy a home in the area, having a larger selection of listings is good news,” de la Campa stated. “The best way to lower prices and address the current housing affordability crisis facing buyers is to increase supply.”
In contrast, the research notes that certain northern American cities—some of which have a serious housing shortage—remain popular.
For example, the most hot city over the past year has been Rochester, New York, where price per square foot has increased 11.5 percent and inventory has decreased by more than 15 percent. Just north of Chicago, in Lake County, Illinois, hot market indicators for April included price increases of 13 percent and inventory reductions of 11.3 percent.
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Mike has more than 30 years of experience in marketing and public relations. He once owned his own agency and has worked with some of the largest brands in the world.
