Florida's real estate market has witnessed significant shifts, marking January 2024 as a pivotal moment for prospective home buyers. With 7.6% of homes on the market delisted—the highest level in over a decade—buyers find themselves with newfound leverage. This change is most pronounced in Florida, which boasts 172,209 homes for sale, its highest since Redfin began tracking the data in 2012.
The state ended January with the largest inventory of homes for sale in six years, offering more than 11 months of supply in cities like Cape Coral and Miami. Typically, a market with over four months of supply indicates a strong buyers' market, suggesting that Florida's current conditions heavily favor buyers.
The influx of residents during the early years of the Covid-19 pandemic brought fierce competition to Florida's housing market. This surge drove property taxes for single-family homes up by 5.1% from 2023 to 2024, as reported by CoreLogic. Despite these challenges, buyers in southeast Florida now possess the greatest purchasing power nationwide.
Elevated mortgage rates continue into this year's busy season, contributing to the lowest home sales in three decades. Persistently high borrowing costs and limited new listings have stifled sales, leaving sellers to adapt to a changing market landscape. Some homeowners on Florida's coasts are offering to cover buyers' closing costs and fund home repairs to attract interest.
“Sellers haven’t had to do that in years,” said Guillette.
This shift is indicative of a market where sellers must adapt their strategies to the evolving demands of buyers.
“When some sellers notice that buyers are asking for more concessions or there’s softening demand, they may decide to delist and wait,” Hepp explained.
Across the nation, contrasting market conditions highlight the unique nature of Florida's current scenario. Rochester, New York, with just one month of supply in January, remains a seller's stronghold among the 100 most populous metro areas in the U.S. Buffalo, New York, and Hartford, Connecticut, follow closely with slightly over a month of supply.
In Florida, other locales such as Fort Lauderdale, West Palm Beach, and Jacksonville also present strong buyers' markets. The abundance of homes available provides prospective buyers with ample choices and bargaining power.
For individuals like Betsy Ambrose, navigating this complex housing landscape has been challenging.
“We’ve been tremendously frustrated trying to wait out some kind of a course correction, or at least price drops of any kind,” she shared.
Ambrose's frustration echoes that of many potential buyers who have struggled to find affordable options amidst high offers from competitors.
“We finally started bidding on houses last year and we just can’t compete with the level of offers coming through,” Ambrose continued.
For Ambrose and others in similar predicaments, the dream of homeownership remains elusive.
“I want to buy a house this year, but I just don’t see it being possible,” she admitted.
While some areas face oversupply, others remain competitive seller markets with limited listings. This dichotomy emphasizes the importance of local market dynamics in influencing buyer and seller behaviors.