HOUSING MARKET CHANGE SPARKS WARNING FOR HOMEBUYERS IN 3 STATES
Expensive insurance costs, high prices and elevated mortgage rates are cooling the housing market in three states—Texas, Florida and Louisiana—with properties in those areas taking longer to sell, according to Realtor.com, offering fresh opportunities for buyers. Analysts, however, also warn that it may take buyers longer to later resell those properties.
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Of the 20 regions in the country that the real estate platform has deemed to currently have "cold" markets, 15 of them come from states situated near or along the Gulf Coast. The Lake Charles and Houma-Thibodaux areas in Louisiana, along with Florida towns of Panama City, Punta Gorda, Naples-Marco Island were all characterized by Realtor.com as cold. Joining them were McAllen-Edinburg-Mission and Brownsville-Harlingen in Texas.
These markets have seen an large influx of new homes entering the market, which could lead to downward pressure on prices, potentially giving buyers more options.
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"For homebuyers looking for comfort, Southern markets offer up much-needed hospitality," Realtor.com economist Ralph McLaughlin said in a news release. "Inventory—especially of entry-level homes—is growing, they are moving slower, and listing prices are actually down compared to last year."
He warns that on the flip side of the lower listings is that buying a home in those markets could mean having to hold on to them for a long time if and when homeowners may look to sell.
"What's the catch? Well, if you have to sell soon, you'll be faced with the other side of that coin," McLaughlin said.
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Realtor.com determines the coldness—or heat—of a market through the lens of how long an average home stays in the market, total supply, price changes and how often a listing is viewed by prospective buyers.
The Texas, Florida and Louisiana markets are struggling with national dynamics of expensive home loans and high home prices. On top of that, climate change-related weather disruptions have led to soaring insurance costs in those states, which has added to the affordability challenges for buyers in these areas.
Those challenges have created cautious buyers when looking to purchase homes in those parts of the country.
Realtor.com suggested that with a large number of options available for buyers in the cold markets, buyers are able to take their time and be more discriminating in where they choose to place their investment.
"Homebuyers in cold markets can be cool in the homebuying process by not needing to move fast and not needing to jump on the first home they see," McLaughlin said.
2024-07-01T14:57:25Z dg43tfdfdgfd
