Is Florida Real Estate Melting?

On today’s show we are looking at the residential real estate market in select areas of Florida. Many local brokers are sounding the alarm that rising inventory of homes for sale is causing prices to fall. These markets are experiencing multiple headwinds at the same time.

Some of the shifts are reminiscent of 2008.

For example in Cape Coral, homes for sale inventory is up nearly 1000%. There are currently over 800 homes for sale in Cape Coral as compared with 80 homes for sale two years ago. Now some would say that this is not a fair comparison. We need to look at other metrics like the long term average inventory and how does the current inventory compare against the long term average.

Today’s inventory level appears to be on par with what it was in 2018 and 2019. Nobody was sounding the alarm back in 2019. So why is it a problem now if that same inventory level was not a problem then?

The difference comes down to affordability. Prices are 50-60% higher today than they were in 2019. That means that homes are simply more costly to own.

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