Florida's housing market is under strain as inventory levels soar, peaking at 150% in April 2023 amidst rising mortgage rates. Even as inventory growth has recently stabilized, with a year-over-year rise at about 30%, home prices are falling consistently in major metropolitan areas like Miami and Tampa. Despite this trend, home sales continue to decline yearly. Compounding the issue is the uncertainty stemming from the global trade war, leading to a cautious approach among potential buyers, who are hesitant to invest amidst fluctuating mortgage rates and inflation concerns.
The laws of gravity have taken effect, according to data from Altos. Florida inventory started to rise year over year, peaking at 150% in April 2023.
Growth in homes for sale has correlated significantly with rising mortgage rates. When rates started to jump, Florida inventory followed suit.
Now that growth in mortgage rates has stopped moving, so has the year-over-year rise in Florida inventory, but it's settled in at a pace of about 30%.
Rising inventory and falling prices has yet to entice prospective buyers; home sales in all five metropolitan areas are down year over year.
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