H
ome sellers in Southwest Florida are drastically reducing their asking prices, a trend not seen since the economic downturn of 2007-2009. According to real estate professor Shelton Weeks, this is likely due to the state's housing market slowing down after a pandemic-fueled boom. The Sunshine State attracted many out-of-state newcomers seeking affordable housing and lower taxes, but with remote working opportunities dwindling, in-migration has slowed.

    Florida built more new homes than any other state to meet growing demand, but now inventory is meeting dwindling demand as Floridians struggle with rising homeowners association fees, high property insurance premiums, and climbing homeownership costs. The state ended January with a record-high inventory of 172,209 homes for sale, with even more added in February.

    Buyers are facing mortgage rates between 6-7% and higher housing costs, making it difficult to purchase a home. In Southwest Florida, inventory is piling up, forcing sellers to slash prices. Tampa saw 32.3% of homes on the market have price reductions in February, while Cape Coral had almost half of its for-sale homes with price cuts.

    In Fort Myers, only 112 homes were sold in February, down 24.8% from a year earlier, and 41.5% of listed homes had a price reduction. Naples saw widespread cuts, but the median sale price remained high at $1.2 million. Experts predict that Florida won't face a housing crash this year, but rather a correction from its overheating market.

    Real estate agents are advising buyers to take advantage of the current market conditions, with Adam Bartomeo predicting a decrease in both rental prices and single-family home sales until the end of the year. Denny Grimes notes that Florida has turned into a buyer's market, giving those looking to purchase more options. Weeks agrees, saying it's a good time to buy due to potential deals available.