Homes are piling up on the market in Florida there are 2 big reasons why

The rosy glow of the COVID-19 pandemic real estate market appears to be drying up in the Sunshine State of Florida.The December 2024 Monthly Housing Report released by Realtor.com found a flood of homes sitting on the market for longer than average.The typical home spent 70 days on the market last December—that’s nine more days than the same time last year and eight more days than the month prior, according to the Realtor.com report.This marks the slowest December since 2019 and the slowest month since January 2023.It’s also the ninth month in a row where homes spent more time on the market compared with the previous year.Newly listed home inventory increased by 4.8% in the South, while the Northeast and Midwest saw inventory decreases of at least 5.6%, according to the report.The increase in newly listed homes contributed to an overall increase in inventory on the market across the country.

On a national level, there were 22% more homes available in 2024 than in 2023.Realtor.com compiled the top four Florida cities with the highest inventory sitting on the market for more than 90 days:Here’s why Florida is seeing especially significant market lags.Subscribe to our daily Business Report newsletter! Please provide a valid email address.

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“The housing market tends to slow seasonally in the winter, and buyers and sellers turn their attention to the season’s holidays,” says Realtor.com senior economic research analyst Hannah Jones.However, this year marked a bit of a change.“Warm markets, especially in Florida, saw inventory pile up and market pace slow more than was typical nationally,” Jones adds.“More generally, the South has seen inventory climb and market pace slow over the last year as buyers stick to the sidelines, thwarted by still-high home prices and mortgage rates.”Both...