Although interest rates (and therefore mortgage rates) are likely to stay elevated for a while longer, per the most recent Federal Open Market Committee discussion, home prices in some regions are finally starting to fall.
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As pandemic-related supply chain struggles and high costs of building materials begin to even out, builders have flooded the Florida market with new houses. However, the homebuying boom in Florida has slowed to a trickle as people return to office places and can no longer work wherever they choose. Add high home prices and high interest rates, coupled with difficulties obtaining home insurance, and the Florida housing market is beginning to level out, according to a recent Redfin report.
“Out-of-town homebuyers no longer see Florida as a place to get amazing value. Now they’re moving to North Carolina or Tennessee to get a good deal,” said Eric Auciello, a local Redfin sales manager, in the report.
He added, “My advice to sellers is to price your home fairly; the comps from six months ago don’t exist now. And if you’re a buyer, know that the odds of getting an offer accepted below market value are pretty high.”
With prices dropping, you may be able to snag a great deal on a home in one of these top Florida metros.
North Port – Sarasota
Market analysis showed that 48% of real estate listings in North Port-Sarasota had cut prices, more than anywhere else in the country. The West Coast Florida city saw a 51% year-over-year home inventory increase, which contributed to the drop in listing prices. Median sale prices in the city dropped by 4.6% since March 2023, according to the Redfin analysis.
North Port is a smaller town with roughly 85,000 residents and tends to be more affordable than some nearby Florida cities. Quicken Loans named North Port the second-fastest-growing U.S. city in 2023, and with even more affordable housing, that trend promises to continue.
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Tampa
If you’d like to move a little farther north to a bustling metropolis, consider the West Coast city of Tampa. According to market reports, 44% of home listings showed price drops in Tampa, while inventory increased by 29%, year-over-year.
Close to some of Florida’s best beaches, vibrant nightlife, sports teams, and entertainment, Tampa offers something for everyone. Rated one of the most affordable places to live in the U.S. by ExtraSpaceStorage, the housing price drop just made Tampa even more desirable.
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Cape Coral
The beachside city of Cape Coral, on Florida’s southwest coast, has also grown more affordable recently. Roughly 41% of homes listed showed price cuts in March. Cape Coral also saw a surging supply, with 51% more homes on the market in March 2024 compared to March 2023, the largest jump in the country.
With a population of 179,804, Cape Coral is not as populated as many of the cities on this list, which makes it perfect for homebuyers looking for big-city amenities and entertainment with a small town vibe.
Orlando
Prices are dropping rapidly in the Central Florida city of Orlando, a major metro near tourist hotspots like Walt Disney World Resorts and Universal Studios. The report showed that 35% of Orlando home listings showed reduced prices in March. Orlando also showed an increased inventory of 23% year-over-year.
Alongside falling home prices, Orlando is experiencing record job growth. The area gained the third-highest number of private sector jobs, increasing 1.8% year-over-year, according to a press release from FloridaCommerce.com.
Jacksonville
Finally, the East Coast city of Jacksonville, Florida, near the Georgia border, also saw steep price cuts of 33%. If you’re considering a move to the Sunshine State, Jacksonville also offers plenty of job opportunities. FloridaCommerce announced that the Jacksonville metro area labor force grew by 12,604 jobs, or 1.5%, with the private sector adding 11,300 jobs, for a 1.6% increase. Fields showing the most growth include education and health services, according to the press release.
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This article originally appeared on GOBankingRates.com: Housing Market 2024: 5 Florida Cities That Are Suddenly Affordable
