Stay up-to-date with the latest insights from Lance Lambert’s ResiClub by subscribing to our free, daily ResiClub newsletter.
Recently, researchers at John Burns Research and Consulting (JBREC) shared the findings from their March survey of real estate agents, shedding light on the current state of the housing market.
The results echo what inventory data has been indicating for some time now: There’s a noticeable softening in certain housing markets in Florida and Texas, where active listings are approaching pre-pandemic levels. Meanwhile, regions in the Northeast, Midwest, and Southern California continue to experience high competitiveness due to tight inventory.
According to the survey, a staggering 94% of resale agents in the Northeast reported that buyers outnumber sellers in their market. In contrast, only 30% of resale agents in South Florida shared the same sentiment.
So, what’s driving these trends in the housing markets of Florida and Texas?
In Florida, housing inventory levels have seen the most significant year-over-year increase nationwide, standing at 57%. However, this surge is largely concentrated in parts of Southwest Florida, particularly in areas like Cape Coral and Fort Myers, which were heavily impacted by Hurricane Ian in September 2022.
The aftermath of Hurricane Ian resulted in thousands of damaged homes, leading to a surge in available housing inventory as renovation efforts ensued. With the hurricane causing an estimated $112.9 billion in total damage, coupled with increased home insurance costs, the housing market in Southwest Florida experienced softening due to a combination of factors such as strained demand, rising home prices, spiked mortgage rates, and higher insurance premiums.
In Texas, particularly in Austin, home prices soared rapidly during the pandemic-era migration boom. However, once the surge in migration subsided, local home prices became unattainable for many residents, leading to a correction in prices.
Don’t miss the chance to showcase your brand’s excellence by applying to this year’s Brands That Matter Awards. Apply before the early-rate deadline on May 3rd.
