After a period of rapid growth, home prices in several major cities in Texas and Florida are showing signs of moderation. Rising inventory and slowing migration are contributing to this trend.
Out of the largest 50 metros, only four major cities recorded year-over-year price declines as of Nov. 2024, according to Redfin. Here's a look at which cities had price drops and how much they fell, based on the change in median home prices.After home prices soared to a peak of $667,000 in 2022, they have since begun to moderate. From 2020 to 2022, Americans flocked to warmer climates and more affordable cities like Austin, driving up demand for housing in Texas and Florida .
This surge in interest coincided with a construction boom, bringing housing supply Now, with migration slowing and new homes entering the market, major cities in Texas and Florida are seeing slower price growth compared to the national average. While some cities in these states posted price declines, others — such as Orlando and West Palm Beach in Florida, along with Fort Worth in Texas — recorded only modest gains of under 2%, far below the national average of 5.4%, according to Redfin. Rising levels of 'stale inventory' — homes sitting on the market for over 60 days — are weighing on prices. In November, more than 60% of listings in Austin, Fort Lauderdale and San Antonio remained unsold for two months or longer, among the highest shares in the country,driving up insurance premiums These metros stand in contrast to much of the country, where tight inventory is expected to push home prices higher. 'Home prices are likely to keep rising steadily throughout 2025 at a similar pace to this year,' writes Redfin senior economist Sheharyar Bokhari in a recent analysis.'Elevated mortgage rates will cause many homeowners to hang onto their homes — and the low rates they have locked in. That means there will be enough buyers competing over a relatively low number of homes to keep prices ticking up consistently.'Why mortgage rates remain so high—and what to expect in 2025Movie
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