More and more violent hurricane seasons and surging residence insurance coverage prices have tanked Florida’s housing market, in accordance with a Redfin market report revealed on Tuesday.
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More and more violent hurricane seasons and surging residence insurance coverage prices have tanked Florida’s housing market, in accordance with a Redfin market report revealed on Tuesday.
Florida led the best way in annual pending residence sale declines throughout the 4 weeks ending on Nov. 10, with contract signings in Ft. Lauderdale (-15.2 %), Miami (-14 %) and West Palm Seaside (-13.8 %) declining by double digits. Jacksonville (-9.5 %) and Tampa (-7.2 %) fared higher than their counterparts; nevertheless, these metros nonetheless fell behind the nationwide pending residence gross sales development fee of 4.7 %.
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Redfin stated the dip in purchaser exercise may be traced again to the impression of hurricanes Helene and Milton, which hit the state back-to-back on the finish of September and the start of October. The Nationwide Flood Insurance coverage Program launched a harm estimate report on Thursday, which stated Floridians are dealing with property harm losses of no less than $500 million. The melee of storms has sparked a domino impact, leaving householders to shoulder exorbitant residence insurance coverage prices or promote their properties at a loss.
Outdoors of climate-related headwinds, weak affordability, rising property taxes and steep householders affiliation charges are stifling market exercise.
“There’s still some demand for vacation homes, but in general, the market is very slow,” Florida-based Redfin Premier agent Lindsay Garcia stated in a ready assertion. “Buyers have been grappling with persistently high housing costs and uncertainty around the election. First-time buyers are especially skittish.”
“The condo market is really struggling because of high HOA fees and homeowner’s insurance costs, and on top of that, many condo owners are seeing special assessments due to new rules implemented after the Surfside condo collapse,” she added. “Some condos are sitting on the market for over a year.”
Though pending residence gross sales in Florida are at the moment wanting bleak, Redfin stated there’s nonetheless a sliver of hope. In Tampa, pending residence gross sales fell 32.2 % throughout the 4 weeks ending Oct. 20, however now they’re solely down 7.2 % — equaling a 77 % enchancment over 4 weeks.
