Florida Housing Market Stung as Multiple Cities See Prices Slashed

Eight of the top ten cities in the country where homes are selling for the most below the asking price are in Florida, according to a recent analysis. As inventory grows, buyers in these cities can afford to be a little more selective.

The Florida cities of Naples, West Palm Beach, Punta Gorda, Miami, Sebastian, Fort Lauderdale, Cape Coral, and North Port all ranked among the top ten cities where sellers have had to accept the largest price cuts to sell their properties, based on Redfin data analyzed by Stacker. Newsweek reached out to Redfin for comment on Wednesday morning.

Despite persistently high mortgage rates, which are still around 7 percent, and prices that remain near their pandemic peaks, buyers in Florida are gaining the upper hand, as noted by Stacker.

Florida remains one of the most overpriced housing markets in the country, especially in cities like Cape Coral and Miami. However, a recent surge in inventory has allowed buyers to push prices down in parts of the state.

In Naples, homes were selling for an average of 4.8 percent below the listed price in May, the largest share in the nation. The median list price of a home in this Gulf of Mexico city was $675,000 in May, while the median sale price was higher at $699,000. About 4 percent of homes still sold above the listed price.

In West Palm Beach, homes were selling for an average of 4.51 percent below the listed price. The median list price was $519,000, and the median sale price was slightly lower at $515,000. Only 8.1 percent of homes sold above the listed price.

In Punta Gorda, the average price difference between the list price and the sale price was 4.14 percent. The median list price was $379,800, and the median sale price was $350,000.

College Station, Texas, broke the Florida trend by taking the number four spot, with sellers accepting an average price difference of 3.98 percent below the listed price.

Miami followed with an average price difference of 3.82 percent below the list price, then Sebastian (3.8 percent), Fort Lauderdale (3.72 percent), New Orleans, Louisiana (3.72 percent), Cape Coral (3.6 percent), and North Port (3.54 percent).

In Miami, the median list price was $599,000, and the median sale price was $540,000 in May. Just 12.2 percent of homes sold above the listed price. In Sebastian, the median list price was $408,000, and the median sale price was $397,450. Only 5.1 percent of homes sold above the listed price. In Fort Lauderdale, the median list price was $462,498, and the median sale price was $460,000. Just 11.3 percent of homes sold above the listed price.

In Cape Coral, the median list price was $415,000, and the median sale price was $399,900. Only 8.6 percent of homes sold above the listed price. In North Port, the median list price was $473,475, and the median sale price was $458,250.

These price cuts are part of a larger trend. According to Federal Reserve Economic Data, the median listing price of a home in Florida was $450,000 in June, down from $478,500 a year earlier, marking the lowest value in over two years.

Experts like Nick Gerli, CEO and Founder of Reventure Consulting, predict the Florida housing market will enter a downturn as inventory increases. He noted on X last month that growing supply is “a sign of a major selloff and indicates prices are likely to drop in H2 2024.”

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