B
enzinga and Yahoo Finance may earn commissions or revenue through affiliate links. A long-feared real estate collapse is drawing closer, with Florida's housing market in free fall. The state has seen its biggest decline in house prices in 13 years, according to Bloomberg, driven by high interest rates, insurance costs, oversupply, and low demand. Over half of the US metros with the most price cuts are found in Florida.

    In April, around one-third of homes in North Port and Tampa had their prices reduced, while Cape Coral saw cuts of over 28% and Jacksonville experienced drops of more than 27.5%. Redfin Senior Economist Sheharyar Bokhari notes that both condos and single-family markets are weakening due to high mortgage rates making it unaffordable for buyers.

    The number of home listings surged by 50% in Cape Coral and North Port-Sarasota from a year earlier, according to Redfin data. The west coast has been particularly hard hit, with the East Coast now also feeling the effects. Orlando saw a 0.9% sales decline, while Jacksonville experienced a 2.2% drop.

    "People used to move to Florida for deals, but now they can't afford it," says Bryan Carnaggio, a Redfin Premier agent in Florida. "The first questions from out-of-staters are about hurricane risks and insurance rates." With stringent building safety requirements and higher insurance costs following the Surfside condominium collapse, the state's housing market is facing significant challenges.