South Florida‘s pandemic property boom has officially reversed.
After years of surging demand due to a pandemic real estate boom, the region is now tanking. There are more homes on the market than at any time in nearly a decade, according to a new report from Cotality.
Residents are desperate to unload their homes and are listing in a panic due to skyrocketing homeowners association fees following the 2021 Surfside collapse and soaring insurance costs due to natural disasters, which are a huge risk in south Florida particularly.
The demand for homes is completely collapsing.
Listings across Miami-Dade, Broward, and Palm Beach counties have quadrupled since 2022. There are now more homes on sale than ever in the area.
‘The last 25 years have seen home prices, homeowners’ insurance, and property taxes surge in Florida,’ explains Cotality chief economist Selma Hepp.
‘When you add in the unflagging migration that is straining the state’s public services and inflated costs across the board, the pressure on the quality of life has become so great that it is beginning to tip the balance. Many households are finding it increasingly difficult to stay in the state.’
Florida’s fragile housing market can also be blamed on aging infrastructure and environmental threats.
The number of homes for sale across Miami-Dade county has quadrupled since 2022
South Florida’s once red-hot housing market now has the highest number of listings in nearly a decade
Cotality chief economist Selma Hepp
More than 52,000 homes in those areas were listed for sale in April.
That’s a huge jump from just 12,825 listings during the peak of Florida’s COVID and post-COVID migration boom, when thousands of buyers flocked to the state in search of sunshine and space.
Residents blame skyrocketing home costs and a mortgage crisis that shows no signs of easing up any time soon.
The risk of natural disasters and soaring insurance costs are also lessening Florida’s appeal.
the HOA costs and insurance costs there are the worst due to natural disasters and issues like Surfside being worse than anywhere else in country. Also they boomed the most out of any state and homebuilers went mad – creating a glut of new homes.
(edited)
According to experts, Florida is also getting hit with a combination of rising inventory and falling demand as people grow desperate to flee.
Stricter building regulations following the 2021 Surfside collapse are also driving sellers to the market, because they’re ending up footing the bill for long-neglected repairs.
After the Champlain Towers South in Surfside collapsed, it forced lawmakers to impose strict new inspection laws and higher HOA reserves on condo buildings.
Sky high maintenance fees and insurance premiums are also causing homeowners to sell, according to a new report by Cotality.
Houses are sitting on the market due to a combination of rising inventory and falling demand
Real estate investors are also bailing on Florida as the state’s property crisis worsens
Neighborhoods all over the Sunshine State are seeing listings but little sales
New builds are also failing to draw residents.
Labor shortages, rising material costs, and extra costs from tariffs are adding additional hurdles for developers who are now pausing projects.
Real estate investors are also bailing on Florida as the state’s property crisis worsens.
Out of the top five areas where investor purchases have dropped the most, three are located in Florida, according to a report by Redfin.
With its warm weather, beautiful beaches, affordable homes and no state income tax, Florida for years drew investors looking to flip homes or generate rental income.
Breaking down which areas are being hit hardest, according to Cotality’s Home Price Index, Tampa home sales listings increased 52 percent in the last five years. Jacksonville saw a 50 percent jump in listings.
Orlando, where Disney drives jobs and homeowners, is also struggling.
‘It’s kind of like this perfect storm now,’ said Reventure CEO Nick Gerli. ‘People are being priced out, newcomers are drying up, and more homeowners are choosing to sell.’
Tampa home sales listings have increased 52 percent in the last five years
Natural disasters and rising insurance costs are also causing homeowners to want to flee
Gerli adds that South Florida residents earning between $70,000 and $80,000 a year can no longer afford to buy homes, even if property taxes stay low.
‘They can’t even qualify for a mortgage in many cases,’ he said. ‘This type of family could afford to buy before the pandemic — but not anymore.’
The report concludes that the housing boom in Florida has now fully ‘boomeranged,’ and has now gone in the complete opposite direction, threatening to crash.
‘Florida has become a victim of its own success,’ it reads.
Meanwhile, Florida contained three of the top five metro areas that were announced last month to be at huge risk of a housing market crash in 2025.
Winter Haven, Tampa, and West Palm Beach among the top five U.S. markets most likely to see home price declines this year.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .