The previous hot real estate market in southwestern Florida has seen a worrying slowdown recently. Real estate that is usually sold immediately has now been left unsold for several months, causing concern among homeowners and real estate professionals.
Darlene Strange has been trying to sell his mother’s home in Fort Myers since November last year.
“It makes me wonder, will it ever happen?” she He told Wink News.
“It’s been on the market for about 157 days. Only four people saw it.”
Data suggest that the situation in southwestern Florida could be an indicator of a broader challenge in the statewide real estate market.
Fort Myers homeowners are facing growing frustration as their home takes longer than expected.
local data Currently, real estate is currently in the market for an average of approximately 100 days. This contrasts with when the house spent nearly 50 days at the market a few years ago.
“I had one property that was on the market for 10 months and it didn’t sell,” says Fort Sue Christian, a real estate agent in the Myers area. Today I spoke to Gulf Coast News.
“We got the offer, but they were all lowballs.”
This is not just a Fort Myers problem. Similar slowdowns have also occurred in Florida cities, including major metropolitan areas such as Tampa Bay and Miami.
In South Florida, it currently takes 90 days to sell. CBS News Miami -Compared to 60 days a few years ago. Tampa Bay also jumped the average number of days you stay in the market. ABC Action News Reports an increase in inventory and a transition to what agents call buyers’ markets.
For Strange, he told Wink News that he needed revenue to sell his mother’s house and cover the cost of living in his mother’s house.
“We’re going to fall into the point where if something doesn’t happen within next year, it’s going to be a very scary situation,” she said.
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The slowdown in housing that is taking place across Florida reflects national trends in the US, including high prices. Mortgage feesrising prices Housing insurance Premium and high listing prices.
Financial yields have increased, which affect consumer borrowing costs. Fixed US mortgage rate for 30 years Nearly 6.9%. Increased mortgage rates will reduce the purchasing power of future home buyers. For those considering buying a home, an increase in mortgage payments means potentially a few hundred dollars a month, but it can mean a difference between deciding whether to buy a home or not.
Insurance costs are also rising sharply in Florida, with insurance premiums being driven rapidly by natural disasters such as hurricanes and floods. In fact, climate-driven disasters are increasing premiums across the United States. In Midwest states, for example, storms are rising rapidly, with some insurers refusing to even cover homes in vulnerable areas.
According to Wall Street JournalThe cost of the heavy storm was $58 billion in 2024 to insurers. The American Consumer Federation says US homeowners are facing Home insurance premiums have increased by 24% The past three years. Additional insurance costs are another factor that further deters potential buyers from entering the market.
What’s added to all this is the inflated home prices that are still lingering from the housing boom during the pandemic. A combination of factors is to create a challenging environment for both buyers and sellers.
The good news is that the slowdown in Florida homes appears to reflect a market correction rather than a crash. Yes, state home prices have fallen over the past year, but are only about 3% and are stable.
The slowdown could lead to stock accumulations in cities like Fort Myers in the southwest of the state, potentially extending market corrections for these regions.
The more worrying long-term effects could be linked to higher insurance costs. If premiums continue to rise at current rates, you can place your home ownership out of reach of first-time buyers.
According to Bipartisan Policy Centersome homeowners have chosen to abandon their insurance altogether, putting their potential No. 1 assets at a great risk. Additionally, as insurers withdraw from several markets due to climate risks, it could also affect the equity of existing homeowners.
So, while Florida’s housing market doesn’t seem to collapse, there appears to be an affordable crisis created by rising mortgages and insurance costs. This could change who can afford a house, what risks they take, where they can.
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This article is for information only and should not be construed as advice. It is provided without warranty of any kind.
