Home prices fall in Tampa Bay, rise in Midwest and Northeast
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Illustration: Rebecca Zisser/Axios
Real estate prices are all about "location, location, location," and right now that's particularly true — in half the country home prices are falling, including in Tampa Bay.
- In the other half, they're still going up.
Why it matters: The price data shows that the housing story is more complicated than affordability and still-high mortgage rates, which have cratered demand nationwide.
- Ultimately, this tale of two housing markets is all about supply. In the places facing shortages of available homes, and less newly constructed housing, prices are holding up.
Zoom in: The price of the typical home in Tampa Bay fell to $362,150 this June — a nearly 6% drop year-over-year.
- Our vulnerability to hurricanes, coupled with steep insurance costs, has dragged down the housing market, with demand plummeting, houses staying on the market longer and fewer people moving here.
- Prices have also dropped in Jacksonville and Miami.
The big picture: Areas in the South, particularly Texas and Florida, that had lots of new construction over the past few years, are seeing prices fall.
- And it's not just new homes; existing homeowners in these regions are also looking to sell and leave behind higher insurance costs and climate risks.
- "In places like Florida and Texas, they're kind of tired of hurricanes," says Chen Zhao, head of economic research at Redfin. These folks are putting their homes on the market.
"It's almost as if America is two countries right now from a housing perspective," said Atlantic writer Derek Thompson, who drew attention to the dichotomy in a recent episode of his podcast.
Reality check: Even if prices are down near you, they're still probably higher than they were in 2019, before a homebuying frenzy sent prices soaring.
- Typical home values in Tampa Bay sit roughly 52% above pre-pandemic levels, per Zillow.