Florida Housing Inventory Soars to Record Highs Amid Plummeting Sales

North Port, Florida, USA - The Florida housing market is currently experiencing a notable shift, as illustrated by recent data. According to Wolf Street, active listings of existing homes for sale in Florida surged by 32% year-over-year in May, reaching a total of 181,822 listings. This figure marks a significant uptick, representing a 26% increase from May 2019 and a 34% increase from May 2018. With inventory levels at their highest since 2016, the increase can largely be attributed to a decline in sales rather than a spike in new listings. Home sales have faltered, driven by rising prices that have ballooned due to the rapid price increases seen during the pandemic.

In Miami-Fort Lauderdale-West Palm Beach, active listings skyrocketed by 39% compared to last May, totaling 51,901 homes. Notably, this inventory is 5% higher than in May 2019 and 10% higher than in May 2018. Other major metro areas in Florida also saw significant increases in listings. For instance, the Tampa-St. Petersburg-Clearwater area reported a 31% year-over-year rise, bringing the count to 20,033 homes. This is 40% greater than in May 2019 and a whopping 50% higher than in May 2018.

Metro Highlights

The increase in inventory wasn’t confined to just one area. The Orlando-Kissimmee-Sanford metro experienced a 39% increase, bringing active listings to 13,994, while the Cape Coral-Fort Myers region recorded a 36% jump, also totaling 13,757 homes. Other notable areas include North Port-Sarasota-Bradenton, where active listings rose by 31% to 10,870, and Jacksonville, with a 31% increase to 9,893 homes.

• Miami-Fort Lauderdale-West Palm Beach: 51,901 homes (39% increase)
• Tampa-St. Petersburg-Clearwater: 20,033 homes (31% increase)
• Orlando-Kissimmee-Sanford: 13,994 homes (39% increase)
• Cape Coral-Fort Myers: 13,757 homes (36% increase)
• North Port-Sarasota-Bradenton: 10,870 homes (31% increase)
• Jacksonville: 9,893 homes (31% increase)
• Lakeland-Winter Haven: 5,161 homes (25% increase)

In Lakeland-Winter Haven, unsold inventory jumped by 25% year-over-year to 5,161 homes, a striking 80% increase compared to May 2019 and 63% higher than May 2018. These shifts are reverberating through the state’s economy, which is heavily reliant on real estate activities that generate revenue, create jobs, and contribute billions to Florida’s economy, as noted by Florida Realtors.

Market Outlook

The data indicates that the demand for homes is softening, with pending sales of existing homes in the South down by 31% in April compared to the same month in 2019. The situation parallels trends observed in major California markets, showing a broad pattern of increased active listings alongside decreased demand. To gain a more detailed understanding of these trends, the Federal Reserve Bank of St. Louis offers a glimpse into housing inventory data through its FRED data series.

As we navigate this changing landscape, homebuyers may find more options available. While the journey may seem arduous, with prices peaking and demand waning, there’s something to be said for a market that is finally balancing out for buyers in Florida.

For more insights, Florida Realtors continues to monitor market trends, offering valuable forecasts and data that keep stakeholders informed. Those interested in the past year’s housing market information or specific reports can explore detailed data through their market data section.