Housing supply is up across Florida, which is expected to bring prices down. Image via Canva.
During the pandemic, housing prices skyrocketed as demand from newcomers to Florida outpaced supply.
Florida dominates the list of housing markets where prices are expected to decrease in the months ahead.
According to a report by Parcl Labs, the Sunshine State is at the epicenter of supply and demand imbalances that could lead to home price corrections. In fact, 13 out of the 15 at-risk housing markets on Parcel Labs’ list are in Florida.
But that’s not necessarily a bad thing. During the pandemic, housing prices skyrocketed as demand from newcomers to Florida outpaced supply. A market correction would create a more balanced playing field for buyers and sellers, agents say.
“It’s a healthy cooling, it had to happen. We can’t keep going up and up, as our inventory increases. This absolutely softens the market and makes it more an equal field and we want fairness,” Rose Kemp, president of the Orlando Regional Realtor Association, told WESH 2.
The change comes from a slightly lower demand and a higher supply, agents say. In places like Orlando, “home values are still 55% higher than they were before the pandemic, so any price adjustment will offer some relief,” said Orphe Divounguy, senior economist for Zillow in Orlando.
Meanwhile, inventory is up 50% in Orlando compared to last year.
These are the 15 metropolitan areas that are most likely to see home price drops, according to Parcl Labs:
Crestview-Fort Walton Beach-Destin, Florida
Daphne-Fairhope-Foley, Alabama
Deltona-Daytona Beach-Ormond Beach, Florida
Gainesville, Florida
Homosassa Springs, Florida
Lakeland-Winter Haven, Florida
Miami-Fort Lauderdale-Pompano Beach, Florida
Myrtle Beach-Conway-North Myrtle Beach, South Carolina
Naples-Marco Island, Florida
Ocala, Florida
Orlando-Kissimmee-Sanford, Florida
Palm Bay-Melbourne-Titusville, Florida
Port St. Lucie, Florida
Sebastian-Vero Beach, Florida
Tampa-St. Petersburg-Clearwater, Florida
RELATED: Housing market cools along Florida’s Gulf Coast
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