The real estate market in the US state of Florida is witnessing a sharp shift, as home prices last March recorded its largest annual decline since 2012, according to data issued by Redvin.
According to a report published by the Bloomberg Agency, the average price of all types of homes decreased by 1.7% compared to the same month last year, the largest decrease in the state in more than 13 years.
The end of the post -pandemic impulse
Florida had witnessed a huge real estate mutation after the Korona pandemic, driven by the flow of buyers from outside the state who searched for a lower sunnah and taxes. However, this motivation began to fade, which led to a decline in demand and the increase in real estate supply to reach its highest levels since the start of the data collection in 2012.
Shahryar Bukhari, the chief economist in “Redvin”, explained that many of this decline “is led by the residential apartments market.” But it seems that the separate houses market “began to weaken”, adding that people’s rush towards Florida during the pandemic period “began to fade” and with the high interest rates and its survival high “prices have become uncomfortable for many buyers.”
Residential apartments under the greatest pressure
The Florida Apartments Market was particularly damaged as a result of the high costs of insurance and the increase in regulatory requirements, especially after the collapse of the “Servradide” building in 2021. The state imposed new rules that require strict more and financial reserves for maintenance, which led to a significant increase in the cost of ownership.
According to the report, the average price of the apartment decreased by approximately 7% to 307 thousand and 500 dollars last March, while the average price of the separate house decreased by approximately 2%.
Many apartment owners face great difficulties in selling their units due to the so -called “special assessments” that are imposed to cover exorbitant maintenance costs, which new buyers often visit.
An uncomfortable environment for purchase
A group of factors contributed to the complexity of the real estate scene in Florida, the most prominent of which is the high real estate insurance premiums and the continued interest rates on real estate loans at high levels, which made ownership of a new house a long -standing matter for many residents, especially those who depend on bank financing.
The report warned that the decline in prices in Florida may be an indication of a broader slowdown in the American housing market, especially in light of the entry of the traditional sales season in a tense economic atmosphere and more intense financial restrictions.
