Impact of Pandemic on Housing Market in Florida and Texas
House prices in regions that flourished during the pandemic are set to nosedive, with Florida and Texas being the worst-affected states. The decrease is attributed to increasing natural disasters, surging new constructions, high insurance costs, and the end of the pandemic-era home buying boom.
Key Points
- Inventory levels are up in Florida and Texas housing markets
- Prices per square foot have decreased in various cities
- Federal Reserve's interest rate hikes have impacted mortgage payments
Pros
- Increase in housing supply benefits homebuyers
- Provides opportunity for more affordable housing options in previously expensive markets
Cons
- Sellers may need to lower their asking prices
- Homeowners may experience a decrease in property value