- Jacksonville pending home sales dropped 57 percent in November, tied for 3rd worst in the nation
- Ian’s impact pushed mortgage delinquencies up, causing Florida to lead the nation last month
- Despite economic trends, eight of the top ten metro areas for year-over-year home price increases are in Florida
Florida real estate watchers are in head-scratching mode as mortgage rates drop, but mixed economic reports show a concerning decrease in pending home sales and overall buyer interest. Data from a pair of real estate analytics companies also indicates that Florida is leading the nation in home price increases, while at the same time, among the worst states for over the past month in pending home sales.
Redfin Real Estate Data Center found that among the 50 most populous U.S. metros, pending sales fell the most from a year earlier in Las Vegas (-64%), Austin (-58.2%), Phoenix (-57%), Jacksonville, FL (-57%) and Sacramento (-54%). The data is current through November 20th, 2022.
Florida also leads the nation in mortgage delinquencies, with over 19,000 last month, pushing the state delinquency rate to 3.42%, an initial indication of Hurricane Ian’s impact on the real estate market, according to Black Knight, Inc., a Florida-based real estate analytics company.
The news isn’t all bad for Florida, which still dominates the year-over-year home price increase charts. Eight of the Top-10 markets nationally are based in Florida. Naples, at 42.2% over last year’s market prices, leads the nation, followed by Bradenton at 31.2%, Boca Raton at 27.7%, and Clearwater, at 24%. Lehigh Acres, Palm Bay, Miami, and Pompano Beach rounded out the remainder of Florida cities. Tulsa, Oklahoma (5th overall) and Fayetteville, North Carolina (10th overall) were the only non-Florida cities to crack the national top ten.
But those prices are likely to come down, say some national analysts. Axios reported early Monday that one economics analyst was predicting a “collapse” in U.S. home prices, while Goldman Sachs called for a decline of about 4 percent overall. Other economic experts said the low overall unemployment rate, which would keep mortgage defaults in check, combined with the low overall inventory of houses would act as a floor to temper the decline.
Biden has allowed the Fed to Harpoon the housing market with higher interest rates they claim will control inflation. When Trump was president, inflation was so low that the Fed proposed raising interest rates to promote a 2% inflation rate. Now they claim that raising interest rates will lower inflation! Obviously, a lie. Congress needs to cut back on spending and Biden needs to reverse his war on Fossil fuels. Florida law makers need to resolve the homeowner’s insurance costs, which have skyrocketed! DeSantis must lead this reform!
NOTE: people fleeing the northeast will buffer the potential slowdown in the housing market, but I hope they stay up north!
“Biden has allowed the Fed to Harpoon the housing market with higher interest rates they claim will control inflation.” Economics 101. Raising interest rates is the biggest tool used to control inflation and reduce it. When Trump was president, 10,000,000 people lost their jobs. Meantime, our house insurance went up 51% for 2023. As awful as Ron DeSantis is, he can’t control inflation either. It’s not a lie, and inflation right now is global. Back to school you go!
Under Trump there was not 10,000,000 jobs lost unless you are adding in the covid crisis. Trump had the best economy and lowest unemployment in decades.
Something needs to be done about house insurance in Florida. I believe there is a special session coming up to address that issue.
DESANTIS is horrible? Guess that’s why he won by a landslide, keeping Florida open?!