Florida House Prices Slashed by 1 in 4 Sellers – Newsweek

Florida homeowners are slashing the price of their properties in the hope of attracting hesitnat buyers, with one in four sellers having cut their initial asking price, according to data available on Zillow.

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As of Friday morning, there were 224,036 properties listed for sale on the online real estate marketplace, including single- and multi-family homes, townhomes, apartments, condos and lots. Of those, 52,469 had a price reduction, meaning that nearly one in four (a little over 23 percent) sellers had cut their asking price. The phenomenon was even clearer after taking some elements out of the equation.

Out of a total of 119,668 single-, multi-family homes and townhomes for sale on Zillow in Florida at the time of this article’s publication, 33,703 had a price reduction on their original asking price. That was about 28 percent of all properties for sale—more than one in four sellers.

A similar percentage is obtained when considering condos alone. Out of a total of 164,162 condos for sale in the state, 44,540 had a price reduction, about 27 percent.

This isn’t a new trend in Florida, where sellers have been adjusting their expectations and slashing prices since March.

While Florida remains more expensive than many other states when it comes to housing, with the average home value estimated at $399,944 against the nationwide average of $360,681, sellers in Florida are now facing a market that’s flipped in favor of buyers.

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Florida and Texas have built the highest number of new homes in the nation—something that was badly needed after the country underbuilt for years following the Great Recession.

But the additional supply has come at a time when the cost of home insurance is skyrocketing in the Sunshine State and still-high mortgage rates, together with the increased risk of more frequent and more severe natural disasters, are discouraging buyers. Newsweek contacted Zillow for comment by email on Friday morning.

After the booming years of the pandemic, it’s possible that sellers across Florida are getting something of a reality check.

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Lawrence Yun, chief economist and senior vice president of research at the National Association of Realtors (NAR), previously told Newsweek that “Florida had the highest home price appreciation over the past three years, and some people may be cashing out.” They might just not get the price they might have aspired to for their homes.

Despite sellers slashing prices across the state, a recent report from Florida Atlantic University found that five of the 10 most overpriced housing markets in the country are in Florida: Cape Coral (with an average listing price of $399,339), Tampa ($381,936), Palm Bay ($359,114), Orlando ($397,990) and Lakeland ($234,180).