The latest figures from Redfin reveal Florida as the frontrunner in a nationwide surge of active property listings. Remarkably, in places like Cape Coral, the inventory of available homes has shot up, growing over 75 times faster than the national rate from January to February 2024.
The tally of active listings—which encompasses both existing homes and new constructions—saw a modest increase of 0.8% in February, reaching a yearly peak of 1,601,260. This figure is barely 0.1% lower than the previous year, representing the smallest annual decline observed in recent months.
Nationally, the influx of new listings in February climbed by 3.8%, marking the most significant rise in half a year and reaching heights unseen since September 2022. With a 14.8% year-over-year increase, this period has seen the most substantial annual growth since May 2021. For potential buyers who have been battling the dual challenges of escalating prices and a historic lack of inventory, these developments come as a welcome shift.
Nevertheless, Florida’s active listings have grown much quicker than the rest of the nation in recent months. The result has been a drop in prices that, as of now, has not been met with an equivalent growth in sales. Active listings in the Sunshine State were up 45.8% in February, according to journalist, Lance Lambert.
Cape Coral experienced an impressive surge in active real estate listings, leading the pack from January to February with a notable 60.6% increase. Close behind, North Port’s listings leaped by 52.5%, and Fort Lauderdale’s inventory grew by 25.5%, showcasing significant growth in these areas.
Conversely, some metro areas witnessed a downturn in their real estate listings. Raleigh, NC, saw the most considerable dip, with a decline of 24.4%. Following closely, New Brunswick, NJ, experienced a 19% decrease, and Nassau County, NY, also felt the market’s cooling effects with an 18.5% reduction.
According to Redfin, Florida and Texas have seen the highest increase in active listings throughout the country. This jump in supply has been particularly driven by the listing of condos for sale, as more people attempt to evade increasing insurance costs and Homeowner Association (HOA) fees.
Home prices across the U.S. have lingered high due to the lack of properties for sale, as national demand dipped between late summer 2022 and spring 2023 due to the Federal Reserve’s insistent rate hiking campaign to battle inflation, which resulted in higher mortgage rates across the board. According to Redfin, the median price of a home in the U.S. is up by 6.6% at $412,778 as of February 2024.
In February, Florida’s housing market saw a considerable uptick with 182,729 homes listed for sale, marking a 25.9% increase from the year before, data from Redfin shows. Of these, 49,317 were fresh on the market, contributing to a 26% rise in year-over-year listings. The median listing price stood at $407,500, marginally below the national average, yet this still represents a 4.4% climb from February of the previous year.
A late February report from Redfin highlighted an intriguing trend: despite an increase in listings and a slight dip in prices, the influx of properties, especially condos, into the Florida market has led to a noteworthy reduction in their prices.
Florida is actively working in contradiction of a national trend that has seen condo prices jump by an average of 8.4% year-on-year in January. Some of Florida’s major metro areas saw a substantial decrease within this same time frame, with Jacksonville reporting a 6.5% decline and Miami reporting a 2.5% decline.
Redfin chief economist, Daryl Fairweather, stated, “When prices fall, it’s a reflection of a changing market.” She continued, “Rising HOA fees and insurance costs have made owning a condo less affordable, so buyers don’t want to pay as much for them. Eventually, prices will hit a point where buyers do think Florida condos are good value. But if insurance and other costs keep rising, prices may keep falling.”
