Redfin Reports Pending Home Sales Plummet Over 50% in Three Florida Metros Hit by Hurricane Ian

Rhea-AI Summary

Redfin reports a dramatic 58% drop in pending home sales in the Cape Coral, FL metro area for the four weeks ending October 16, substantially outpacing the national average decline of 32%. Nearby areas Naples and North Port also saw significant decreases of 52% and 51% respectively. New listings fell 59% in Cape Coral, 53% in Naples, and 40% in North Port. Despite a surge in home prices, the overall housing market in Southwest Florida is cooling, impacted heavily by Hurricane Ian.

Positive

• Median new listing price in Cape Coral rose 15% year-over-year to $408,231, outperforming the national increase of 8%.
• Investor interest in Florida remains high, with Jacksonville reporting 31.9% of homes sold to investors.

Negative

• Pending home sales in Cape Coral fell 58%, significantly higher than the national decline of 32%.
• New listings in Cape Coral decreased by 59%, more than triple the national decline of 19%.
• Overall housing market slowdown exacerbated by Hurricane Ian, indicating potential long-term market challenges.

Cape Coral saw pending sales sink 58%—nearly double the national decline—while Naples and North Port saw similar drops. New listings also slumped in all three metros

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) — Pending home sales plunged 58% year over year in the Cape Coral, FL metro area during the four weeks ending Oct. 16 in the aftermath of Hurricane Ian, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. That’s nearly twice the nationwide decline of 32%.

Pending sales also slumped in the nearby Naples (-52%) and North Port (-51%) metro areas.

Other Florida metros experienced large—but less severe—declines. Pending sales fell 47% in Miami, 46% in Jacksonville and 43% in West Palm Beach. They were down more than 40% in Deltona, Tampa and Orlando.

Southwest Florida saw outsized decreases in pending sales as the storm quashed home listings. In Cape Coral, new listings sank 59% year over year during the four weeks ending Oct. 16—more than triple the national decline of 19%. They fell 53% in Naples and 40% in North Port.

New listings also fell in other parts of Florida, but not as sharply. They were down 33% in Jacksonville, 30% in Orlando and 28% in both Tallahassee and Tampa.

Hurricane Ian has exacerbated a housing-market slowdown in Southwest Florida that was already more severe than the downturn in other parts of the U.S. North Port and Cape Coral were among the fastest cooling housing markets in the country prior to the storm. That’s largely because scores of people moved in during the pandemic, which drove prices to record highs and caused the markets to overheat. Cape Coral had the highest price growth in the nation in August, the month before the storm. Tampa, North Port and West Palm Beach rounded out the top five.

Cape Coral, North Port and Tampa have consistently ranked on Redfin’s list of most popular migration destinations during the pandemic. Popularity is measured by net inflow, or how many more Redfin.com users looked to move into an area than leave.

While nearly two-thirds of homebuyers and sellers say they’re hesitant to move somewhere with climate risk, many still did during the pandemic because they were searching for relative affordability, lower taxes and/or warm weather. A 2021 Redfin analysis found that more people moved into than out of the U.S. counties with the largest share of homes facing high flood risk from 2016 through 2020—a trend that intensified during the pandemic moving frenzy.

While pending home sales and listings are plunging in Southwest Florida, home prices remain elevated. In Cape Coral, the median new listing price rose 15% year over year to $408,231 during the four weeks ending Oct. 16. That’s nearly double the national increase of 8%. The median new listing price climbed 14% in North Port and 24% in Naples.

While prices remain up on a year-over-year basis, price growth has slowed from recent weeks. If prices continue to ease, more investors may see an opportunity to buy and flip damaged homes in Southwest Florida. Florida is already a hotspot among investors. In Jacksonville, 31.9% of homes that sold in the second quarter were bought by investors—a higher share than any other market analyzed by Redfin. Miami, Orlando and Tampa were also in the top 10.

To view the full report, including charts, please visit: https://www.redfin.com/news/florida-home-sales-fall-hurricane-ian/

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, instant home-buying (iBuying), rentals, lending, title insurance, and renovations services. We sell homes for more money and charge half the fee. We also run the country's #1 real-estate brokerage site. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can take an instant cash offer from Redfin or have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 6,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221020005321/en/

Redfin Journalist Services:

Isabelle Novak, (414) 861-5861

press@redfin.com

Source: Redfin

FAQ

What were the pending home sales figures for Cape Coral, FL as of October 16, 2023?

Pending home sales in Cape Coral, FL fell by 58% year-over-year during the four weeks ending October 16, 2023.

How did Hurricane Ian impact home sales in Southwest Florida?

Hurricane Ian caused a significant decline in home sales and new listings in Southwest Florida, with some areas like Cape Coral experiencing a 58% drop in pending sales.

What is the current trend in home prices in Cape Coral, FL?

Despite a decrease in pending sales, the median new listing price in Cape Coral increased by 15% year-over-year to $408,231.

How does the decline in pending sales in Southwest Florida compare nationally?

The decline in pending sales in Cape Coral (58%) is nearly double the national average decline of 32%.

What areas around Cape Coral experienced similar sales declines?

Naples saw a 52% drop in pending sales, while North Port saw a 51% decrease.