Texas and Florida are experiencing the largest increase in unsold homes on the market, a new study reveals.
In Dallas, 63 percent of properties for sale stayed on the market for at least 30 days in June, up from 52 percent a year earlier.
This increase of more than 10 percent was the largest of all major U.S. metropolises, according to a new analysis by Red fin.
Four other major cities in the Sunshine State follow: Tampa, Fort Lauderdale, Jacksonville and Orlando.
Obsolete inventory is growing fastest in these states as supply outstrips demand and insurance rates skyrocket, Redfin found, even as property prices begin to fall.
In Dallas, 63 percent of properties for sale stayed on the market for at least 30 days in June, up from 52 percent a year earlier, according to Redfin.
In Tampa, 70 percent of homes on the market had been listed for at least 30 days without a contract, up from 60 percent the year before.
About 77 percent of properties in Fort Lauderdale had been on the market for a month, down from 68 percent, and 70 percent of properties for sale in Jacksonville were becoming vacant, down from 61 percent.
Meanwhile, in Orlando, the number of homes that were on the market for more than a month rose from 60 percent to 69 percent in the year through June.
In sixth place on the list is Fort Worth, Texas, where the number of unsold properties on the market for at least 30 days rose 8.1 percent over the year to 64.2 percent.
Florida and Texas are building more new homes than other parts of the country, boosting overall supply at a time when demand is declining due to high housing costs and fees for homeowners.
Even though experts predict prices will soon plummet and some sellers are slashing list prices in previously Covid-booming Florida cities, there are still unsold homes.
The skyrocketing cost of insurance also plays a role.
Florida homeowners already pay the highest coverage premiums in the U.S., averaging $10,996 a year in 2023, according to comparison site Insurify.
Some homebuyers who live in Florida, or are thinking of moving to the state, are having second thoughts because of the increasing prevalence and intensity of weather disasters, Redfin said.
Homes are also taking longer to sell across the country as a whole. The share of outdated homes for sale increased over the year in 44 of the 50 most populous U.S. metropolitan areas, according to Redfin.
Nationally, nearly two-thirds (64.7 percent) of homes on the market in June had been listed for at least a month without selling.
This represents an increase from 59.6 percent recorded in the same month in 2023, marking the largest annual increase in a year.
June also marked the fourth consecutive month in which the share of homes that remained stuck on the market for at least a month increased year-over-year.
The number of properties that had been listed for at least 60 days also increased in June, from 38.4 percent a year earlier to 42.6 percent.
More and more homes are sitting unsold because record-low home prices and high mortgage rates are making buyers shy away, the study found.
The average 30-year fixed mortgage rate is 6.77 percent, according to Freddie Mac’s latest data as of July 18.
In Tampa, 70 percent of homes on the market had been listed for at least 30 days without a contract, up from 60 percent the year before.
Florida and Texas are building more new homes than other parts of the country, boosting overall supply at a time when demand is declining (Photo: Fort Lauderdale)
Some homebuyers are hesitant about Florida due to the increasing prevalence and intensity of weather disasters (pictured: Destruction left by Hurricane Ian in 2022)
Although new listings are losing steam, many of them remain on the market, causing inventory to build up.
“Overall, the market is pretty stagnant,” said Shay Stein, a Redfin Premier agent in Las Vegas.
‘There are more properties for sale on the market, but many of them are not in good condition or are not in a desirable neighborhood, and sellers are setting unrealistic prices.
‘Many sellers are willing to leave their home on the market until they get the price they want, and many buyers are unwilling to pay sky-high prices when mortgage rates are still high.’