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Sunshine State Shakedown: Home Prices Dip in Florida and Texas

While the housing market roars across much of the US, Florida and Texas are experiencing a different reality. These two sunbelt giants, once red-hot destinations for homebuyers, are showing signs of a cool down.

More Homes, Less Bidding Wars

Remember the days of bidding wars and homes flying off the shelves? In Florida and Texas, that frenzy is fading. A surge in home construction has boosted inventory, giving buyers more options and less pressure. Unlike the national trend, some Florida and Texas cities have seen a year-over-year decline in pending sales. This shift in power dynamics is putting some sellers in a bind.

Price Drops and Shifting Gears

The story of Gary and Karen Steppe exemplifies the changing market. Their Florida condo sat on the market longer than expected, eventually selling for less than their initial asking price. This isn't an isolated incident. Data reveals that four out of the five US markets with declining home prices are in Florida or Texas.

A National Canary in the Coal Mine?

While the price dips in Florida and Texas might seem localized, their significance shouldn't be underestimated. These states hold a massive chunk of the national housing market. Their slowdown suggests that rising mortgage rates and increased inventory might be tipping the scales in favor of buyers nationwide.

Sellers Feeling the Squeeze

Nationally, sellers are hesitant to list their homes due to the attractive low rates they currently enjoy. However, a growing number seem to be testing the waters, potentially leading to a rise in listings. This could further cool the market, giving buyers even more leverage.

Florida and Texas: A Cautionary Tale?

The Florida and Texas housing market provides a glimpse into what might be on the horizon for the rest of the country. While a national price correction isn't guaranteed, it's a possibility worth considering. It's a reminder that even a hot market can cool down, especially when affordability concerns come into play.

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