What’s going on in Florida and Texas?
Housing inventory levels in Florida are up the most in the nation on a year-over-year basis (57%), but the bulk of the increase is really concentrated in sections of Southwest Florida. In particular, in markets like Cape Coral and Fort Myers, which were hard-hit by Hurricane Ian in September 2022. Hurricane Ian left behind thousands of damaged homes, and the subsequent need for renovations has resulted in a jump of available housing inventory. According to the National Oceanic and Atmospheric Administration (NOAA), Hurricane Ian caused an estimated $112.9 billion worth of total damage, making Ian the third-costliest U.S. hurricane on record. In addition to residential property damage, the hurricane coincided with spiked home insurance costs. This combination of increased housing supply for sale—the damaged homes, combined with strained demand, the resulting spiked home prices, spiked mortgage rates, higher insurance premiums, and higher HOAs—has translated into market softening across much of Southwest Florida.
In some pockets of Texas, particularly in Austin, home prices simply rose too far, too fast. Once the pandemic-era migration boom fizzled out, Austin home prices were simply too far beyond what locals could afford, so prices fell there.
Source: https://www.resiclubanalytics.com/p/jbrec-northeast-housing-market-hot-floridas-housing-market-softening?utm_source=www.resiclubanalytics.com&utm_medium=newsletter&utm_campaign=jbrec-the-northeast-housing-market-is-hot-florida-s-housing-market-is-softening