Median home sales prices in the U.S. remain near all-time highs and demand has increased since the start of the COVID-19 pandemic, even as supply remains constrained in many regions. The two most populous states, which have experienced rapid growth, are showing signs of a rebound.
This is according to two reports released on Thursday. red fin. The national real estate agency revealed that the median sales price nationwide in March 2024 reached $420,357. This figure was up 5% year over year and was just 3% below the May 2022 peak price of $432,496.
But key market signals are trending differently in Texas and Florida. Redfin reports that of the 10 U.S. metropolitan areas with the highest annual property growth in March, six were in Florida and two were in Texas. Cape Coral, Florida led in this category, with supply increasing by 51%. Major markets such as Tampa, Orlando, and Dallas also recorded 20% to 30% supply increases during this period.
Additionally, of the 10 U.S. metropolitan areas with the most frequent price cuts, five were in Florida and two were in Texas. North Port Sarasota, Fla., topped the list with 48% of listings containing price reductions last month. Tampa, Orlando, Houston, San Antonio and Jacksonville all saw stock prices drop by at least 33%.
Redfin noted that the supply of properties for sale nationwide increased by 10.2% year-on-year in March, although growth in the number of properties is expected to slow due to the lock-in effect of rising mortgage rates. HousingWire’s Mortgage Rate Center The average traditional 30-year fixed rate was 7.56% as of Friday, up from 6.83% at the beginning of the year, it said.
“My advice to sellers is to price your home fairly,” Chen Zhao, head of economic research at Redfin, said in a statement. “Although sellers are currently making the most money, they should be pricing competitively to attract buyers from the outset, especially as persistently high mortgage rates put pressure on buying budgets. There is a need to avoid the need to reduce prices.
“If mortgage rates remain high, or if interest rates could fall slightly, price growth could slow slightly in the coming months, but overall housing costs could remain high for some time. Highly sexual.”
Cape Coral’s publicly traded companies remained on the market a median of 31 days longer than in March 2023, the largest increase in the nation, Redfin reported. He also noted that Florida and Texas have built more housing than any other state in recent years to accommodate the influx of pandemic-era immigrants, but “the boom is over, in part because many people have been priced out.” did.
“Out-of-town homebuyers no longer think of Florida as a place where they can get amazing value,” Eric Ausiello, Tampa-based Redfin sales manager, said in a news release. “Now they’re moving to North Carolina or Tennessee to get a better deal. Many local blue-collar workers are also being disenfranchised from homeownership.”
Rising costs of homeowners insurance are also contributing to declining affordability. S&P Global We found that homeowners insurance premiums in Florida jumped 43.2% from 2018 to 2023. Florida homeowners now pay an average of $6,000 a year to insure their property, three times what they paid in 2019. Insurance Information Association.
“We believe that in Florida, like in many places, the component insurance portion is impacting people’s payments and making it difficult for people to navigate the market.” said Cindy Haydon, an insurance agent. future residential real estatehe recently told HousingWire.
