Sarasota among cities where home prices falling the most

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SARASOTA, Fla. (WFLA) — Florida’s west coast is seeing a surge in housing supply and many sellers are cutting prices, but demand is lackluster according to a new report by Redfin .

Redfin says Florida is one of two states (Texas being the other) where the home supply is growing but homes are having trouble selling thanks in part to high insurance rates and many potential buyers being priced out of the market.

In Florida, Cape Coral (51%), Sarasota (48%), Fort Lauderdale (30%), Tampa (29%), Orlando (23%), and West Palm Beach (20%) are in the top 10 markets in the nation with the largest home supply increase in the past year.

Of those markets, Sarasota has seen the largest home price cuts (48%). In fact, Sarasota leads the country according, to Redfin.

Sarasota is also on the list for the largest average increase when it comes to days a house spends on the market. In Sarasota, homes stayed on the market for 20 days more than a year ago.

“Out-of-town homebuyers no longer see Florida as a place to get amazing value,” said Eric Auciello , a local Redfin sales manager. “Now they’re moving to North Carolina or Tennessee to get a good deal. Many local blue-collar workers have been priced out of homeownership, too.”

“Two years ago, the North Port (Sarasota) metro was one of the most competitive housing markets in the country because it was affordable for remote workers and there was a shortage of homes for sale, but none of those things are true today. Sarasota, in particular, has been overvalued for decades, and the chickens have finally come to roost. The Tampa metro has been faring a bit better.”

Redfin listed the rise in house insurance rates as one major reason for the stagnant market, with nearly three-quarters of Florida homeowners reporting rising costs or coverage changes.

Insurance is not the only issue in the Sunshine State, though. Many homes are sitting on the market because sellers are setting their asking price too high.

“The sharp ascent in Florida housing prices in recent years has driven a lot of homeowners to cash in on their equity, but some of them are having a hard time adjusting to the fact that it’s a buyer’s market,” Auciello said. “My advice to sellers is to price your home fairly; the comps from six months ago don’t exist now. And if you’re a buyer, know that the odds of getting an offer accepted below market value are pretty high.”

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