Source: https://www.resiclubanalytics.com/p/15-housing-markets-highest-home-price-correction-risk-according-parcl-labs
The 15 markets with the highest correction risk, according to Parcl Labs:
- Crestview-Fort Walton Beach-Destin, FL
- Daphne-Fairhope-Foley, AL
- Deltona-Daytona Beach-Ormond Beach, FL
- Gainesville, FL
- Homosassa Springs, FL
- Lakeland-Winter Haven, FL
- Miami-Fort Lauderdale-Pompano Beach, FL
- Myrtle Beach-Conway-North Myrtle Beach, SC
- Naples-Marco Island, FL
- Ocala, FL
- Orlando-Kissimmee-Sanford, FL
- Palm Bay-Melbourne-Titusville, FL
- Port St. Lucie, FL
- Sebastian-Vero Beach, FL
- Tampa-St. Petersburg-Clearwater, FL
The most notable thing is that 13 of the 15 housing markets Parcl Labs labeled as “at risk” are in Florida.
Over the past year, active inventory has been rising at an accelerated pace in many Florida housing markets. Some of that is due to Hurricane Ian, which struck in September 2022, creating additional softening in Southwest Florida. Some of it is a result of spiked home insurance premiums, which have further stretched Florida affordability that was already strained by high home prices and insurance premiums. Additionally, changes passed in Florida following the Surfside condo collapse in 2021 have put downward pressure on many older condos along the Florida coastline.