Rising Home Prices Meet Inventory Surge and Price Cuts in Key Markets

Rising Home Prices Meet Inventory Surge and Price Cuts in Key Markets

Source: Austin Business Journal
Joanne Drilling


Home prices continue to increase nationwide, but several formerly hot housing markets are now experiencing price reductions.

According to new data from residential real estate brokerage firm Redfin, year-over-year listing volumes have increased by about 50% in some metro areas. Nationally, new listings have risen by 6%, active listings by 4%, and median home prices by 5%, as per Redfin's data. The growing supply in many metro areas is just one factor influencing the evolving housing market, alongside interest rate uncertainties, home insurance challenges, and ongoing affordability issues.

Sun Belt markets “no longer an amazing value”
Among the 10 cities with the largest increases in year-over-year supply for March, six were in Florida, including Cape Coral (51%), North Port-Sarasota (48%), Fort Lauderdale (30%), Tampa (29%), and West Palm Beach (20%). Texas also saw increases, with McAllen (25%) and Dallas (20%) adding more homes to the market, as did Knoxville, Tennessee (23%), and Cincinnati (17%).

"Out-of-town homebuyers no longer view Florida as offering amazing value," said Eric Auciello, a Tampa-based Redfin sales manager, in a statement. "They are now moving to North Carolina or Tennessee for better deals."

However, even those deals are relative. Median home prices have increased by 6% year-over-year in Nashville, Tennessee, and by at least 3.6% in all of North Carolina's major metro areas.

Several markets with increased inventory, particularly in Florida, saw significant price cuts over the past year. North Port-Sarasota had the highest price cuts at 48%, followed by Tampa (44%), Cape Coral (41%), Orlando (35%), and Jacksonville (33%). Other markets with price drops included Indianapolis (43%), Denver (37%), Portland, Oregon (34%), Houston (33%), and San Antonio (33%).

Speed of home sales also shifting
Redfin reported that the pace of home sales is slowing in many regions. In Cape Coral, the average home took an additional 31 days to sell last month compared to March 2023. North Port-Sarasota and McAllen needed an extra 20 days, followed by New Orleans (18 days), Tulsa, Oklahoma (13 days), and Cincinnati (13 days). Despite these slowdowns, the median days on the market actually declined by four days compared to a year ago, with Raleigh, North Carolina (down 33 days), and Las Vegas (down 24 days) seeing the steepest declines.

Insurance crisis weighing on the housing market
While higher mortgage rates are exacerbating a lock-in effect, an insurance crisis is further complicating home sales. Last year, 72% of American homeowners experienced an increase in their insurance premiums, and in areas with surging costs, economists believe property values may grow less compared to locations with more stable premiums. State Farm, Farmers Insurance, and AAA have all discontinued certain policy coverages in Florida and California due to severe weather events.

"We’re seeing sellers offer concessions to keep deals together," said Auciello, whose home insurance now costs $14,000 a year, up from $8,000 in 2022. "We’re at an inflection point. A hefty insurance bill isn’t a big deal for a luxury buyer, but it can be a significant issue for someone buying a waterfront home on a smaller budget."

Source: 
Drilling J. (2024). Austin Business Journal. Retrieved from https://www.bizjournals.com/austin/news/2024/06/25/homebuying-hot-spots-price-cuts.html
9 Properties
$389,000
Condo: Whispering Valley Condo Amd
2
Beds
2F11/2
Baths
1,119
Sq.Ft.
1999
Year Built
12
Days on Site
6113388
MLS
$1,700 / month
Neighborhood: South San Gabriel Urban Renewal Blk D
3
Beds
1
Baths
882
Sq.Ft.
1975
Year Built
24
Days on Site
3311878
MLS
$500,000
Neighborhood: AARON, TRACT 13
4
Beds
2
Baths
1,624
Sq.Ft.
1996
Year Built
33
Days on Site
5104544
MLS
$1,400,000
Neighborhood: Burleson, Jonathan
89.44
Acres
33
Days on Site
7789346
MLS
$500,000
Neighborhood: AARON, TRACT 13
10.08
Acres
34
Days on Site
4820446
MLS
$319,900
Neighborhood: Stonefield Sec Two
3
Beds
2
Baths
1,497
Sq.Ft.
2012
Year Built
58
Days on Site
7513021
MLS
$2,000 / month
Condo: Whispering Valley Condo Amd
2
Beds
2F11/2
Baths
1,119
Sq.Ft.
1999
Year Built
80
Days on Site
9102966
MLS
$1,150,000
Condo: Marina Village At Lakeway Condo
3
Beds
3
Baths
2,226
Sq.Ft.
2008
Year Built
157
Days on Site
8948415
MLS
$1,400,000
Neighborhood: Burleson, Jonathan
89.44
Acres
247
Days on Site
2145268
MLS

Learn more about the market with Dyron Taylor

Get to know your REALTOR | Dyron Taylor
When you're on the hunt for a home, we believe that it's more than just a transaction, but a life-changing moment for you. And so, we want you to feel comfortable and know that your REALTOR®, Dyron Taylor, is knowledgeable and experienced in this market, ensuring a favorable outcome for you. Let's get to know Dyron Taylor, your REALTOR® and friend. Contact us! (512) 531 2922 [email protected] #TaylorRealtyGroup #TRGKW #kellerwilliams #austintx #realestatetexas #realtor
When is the BEST TIME to buy a Property? | Dyron Taylor
In this video, Dyron Taylor addresses the MOST ASKED Question: When is the best time to buy a property? At some point in our lives, we may have asked ourselves this question, and it might be the very reason we haven't taken the plunge yet.
How to Sell Your Home?
Before you put your property on the market today, be sure to keep these tips in mind. To make it easier for you, consult a real estate agent because Real Estate Professionals are familiar with the local market dynamics and can provide more detailed information on how to effectively and successfully sell your home. Remember: Don't be a home that helps OTHERS sell, but be a home that SELLS! Get in touch with us today: 512 531 2922 www.taylorrealtygroup.com [email protected]
How Important is OPTION PERIOD to Home Buyers?
An option period refers to a specified timeframe during which a buyer has the unrestricted right to terminate the contract without facing any penalties. It provides them with the opportunity to conduct inspections, appraisals, and other due diligence on the property. The inclusion of an option period offers flexibility and protection for the buyer in the early stages of a real estate transaction. If you want to learn more and are planning to embark on this journey of buying or selling, get in touch with us
Main Value Asset of a Realtor | Dyron Taylor
As buyers and sellers, there are many things to consider when looking for a Realtor. Today, Dyron talks about how realtors are experts in negotiation skills, connections, market analysis, pricing, customer service communication, and investment. Get in touch: 512 531 2922 www.taylorrealtygroup.com [email protected]

Thinking of BUYING or SELLING?

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment