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lorida's southwestern coast, known for its affluent communities and retirement appeal, is experiencing its steepest home price declines since 2011. Luxury areas like Sarasota are seeing significant drops, while Punta Gorda's booming developments have also taken a hit.

    Despite rising national home prices, certain Southeast metros in Florida are bucking the trend. The National Association of Realtors (NAR) data shows that Punta Gorda saw a 6.5% price drop this quarter, with median prices falling to $350,000. North Port-Sarasota-Bradenton wasn't far behind, with a 5.8% fall and median prices reaching $485,000.

    Economist Lawrence Yun attributes the decline to increased housing supply, skyrocketing insurance premiums, and accelerated construction in recent years. Hurricanes have also compounded these woes, spooking potential buyers and delaying transactions. The devastating arrival of Hurricane Debby, followed by Hurricanes Helene and Milton, has left destruction in their wake.

    As a result, the once-frenzied market is slowing down, with insurance prices soaring and investors pulling back. Nearby areas like Cape Coral-Fort Myers are also experiencing declines, with a 3.7% drop in median prices. The region's challenges include storm damage from recent hurricanes, increased home supply, and fewer investor purchases.

    Florida isn't alone in this reversal, as cities like San Antonio, Texas, and Durham, North Carolina, which saw significant real estate gains two years ago, are now facing price corrections. National home prices rose by 3.1% in the third quarter, but the pace of growth is slowing, indicating that affordability remains a major concern in many places.