Florida's Housing Market Is in Trouble

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Condo sales and prices are dropping in Florida's major metros, while home prices at the state level are still rising. What's going on in the Sunshine State?

Sales of condos in Florida have dramatically fallen in recent weeks, even as prices dropped in some of its major metros and the number of 'motivated' sellers in the state—those willing to accept a lower offer in order to sell quickly—is currently the highest in the country.House prices at the state level have been steadily growing in the past months, with the median sale price for all homes in Florida being $404,100 in January, up 4.5 percent year-on-year, according to Redfin data.

'While the lowest housing affordability in four decades has drastically reduced demand for homes, pushing existing single-family home sales to their lowest level since the Great Financial Crisis, a simultaneous reduction in supply is keeping a floor under prices,' Moody's Analytics housing economist Matt Walsh told Newsweek.'The condo market is displaying a similar dynamic to the market for single-family homes,' Walsh explained.

 

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