Crashed Florida home prices haven’t been this bad since 2011

Florida’s sun-soaked southwest coast, known for its affluent enclaves and draw for retirees, is facing its biggest decline in home prices in more than a decade.

From Sarasota’s luxury listings to Punta Gorda’s booming developments, property values ​​have fallen at rates not seen since the post-recession days of 2011.

Despite rising home prices across much of the US, some southeastern metros, particularly in Florida, are bucking the trend.

Home prices along Florida’s southwest coast, including affluent areas like Sarasota, are experiencing their biggest drop since 2011. SeanPavonePhoto – stock.adobe.com
Declining home prices have been driven by rising inventory, higher insurance costs and hurricane impacts. Kristina Blokhin – stock.adobe.com

Data from the National Association of Realtors (NAR) paints a grim picture. The Punta Gorda area saw a 6.5% price drop this quarter, dropping the median to $350,000. North Port-Sarasota-Bradenton wasn’t far behind with a 5.8% drop, pushing median prices to $485,000.

Cape Coral-Fort Myers also posted a 3.7% decline, adding to earlier declines this year. Economist Lawrence Yun of NAR highlighted a cocktail of challenges putting pressure on the market, including rising housing supply, skyrocketing insurance premiums and accelerating construction in recent years.

Tony Barrett, president of the Sarasota and Manatee Sex Association, noted in the September market report that hurricanes have added to these problems.

According to the National Association of Realtors (NAR), the Punta Gorda metro area had the largest annual price decline of 6.5% to $350,000 in the third quarter. Michael Moloney – stock.adobe.com
A list of the top areas in Florida with difficult home prices. National Association of Realtors

The recent storms not only left behind devastation, but also scared off potential buyers, delaying transactions and lowering confidence.

Adding to the chaos, Hurricane Debby inundated the coast in August, followed by the devastating arrival of Hurricanes Helene and Milton in the fall, which left destruction in their wake.

As insurance prices rise and investors pull back, the once frenetic market is slowing.

Nearby, the North Port-Sarasota-Bradenton area saw prices drop 5.8% to $485,000, while the Cape Coral-Fort Myers area saw a 3.7% drop. David Sussman – stock.adobe.com
The region’s challenges include storm damage from recent hurricanes, which delayed sales and hurt buyer confidence, along with increased housing supply and fewer investor purchases. Ray Dukin – stock.adobe.com

Florida is not alone in this change. San Antonio, Texas and Durham, North Carolina – cities that saw their real estate boom with over 20% gains two years ago – are now facing price corrections.

And while national home prices rose 3.1% in the third quarter, with the median reaching $418,700, the pace of growth is slowing, showing that affordability is still a major concern in many places.

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Image Source : nypost.com

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