Home Real Estate Rising insurance coverage prices, ample stock create a singular market in Southwest Florida

Rising insurance coverage prices, ample stock create a singular market in Southwest Florida

Rising insurance coverage prices, ample stock create a singular market in Southwest Florida


In contrast to many different metropolitan areas throughout the nation, the housing market in Southwest Florida is comparably flush with for-sale stock.

“I feel one of many main traits we’re seeing is that our general stock is up 60% yr over yr in comparison with 2023,” stated PJ Smith, president of the Naples Space Board of Realtors and the broker-owner of Naples Golf to Gulf Actual Property. “We’re seeing a wholesome enhance in stock, which we actually wanted.”

In line with knowledge from Altos Analysis as of March 15, the 90-day common variety of single-family energetic listings within the Naples-Marco Island metro space was 2,362, up from 1,605 one yr earlier however down from the three,760 listings recorded in late March 2019 previous to the COVID-19 pandemic.

Within the close by metro space of Cape Coral-Fort Myers, energetic single-family stock over the earlier 90 days averaged 6,500 listings as of March 15, above its March 2020 stage of 5,044 listings and approaching its March 2019 stage of seven,243 listings.


Smith attributes the uptick in stock to a bump in new listings. The 90-day common variety of new listings as of mid-March 2024 was 170 in Naples-Marco Island, and 432 in Cape Coral-Fort Myers). There’s additionally some pent-up need to promote being launched by a steadier rate of interest setting and an general slower market.


“Final yr we had been nonetheless adjusting from the results of the pandemic market, however now the traits appear to be getting again to our baseline, which is extra like our 2019 market,” Smith stated. “Days on market can also be trending again to what’s extra regular for our market as nicely.”

Information from Altos Analysis reveals that the 90-day common median variety of days on market within the Naples-Marco Island metro space was 70 days as of mid-March, up from a report low of 21 days in mid-Might 2022.


Whereas some properties are sitting available on the market longer, Smith famous that these in good situation, priced nicely and in a fascinating location are nonetheless promoting rapidly.

“I simply bought a property after two days available on the market,” Smith stated. “We’re nonetheless seeing properties go pending rapidly and a few with a number of presents.”

Native actual property professionals attribute the slower market to a wide range of components together with larger house costs, which have remained regular regardless of the slowdown, larger rates of interest, and rising prices for owners and flood insurance coverage.

“Florida, like many locations, is seeing the insurance coverage piece of the part impacting individuals’s funds in a means that’s making it laborious to them to navigate the market,” stated Cyndee Haydon, a Seminole-based agent for Future Dwelling Realty agent.

In line with an evaluation by S&P International, between 2018 and 2023, owners insurance coverage charges in Florida have jumped by 43.2%. From 2022 to 2023 alone, charges rose 15%. And knowledge from the Insurance coverage Data Institute reveals that Floridian owners are paying a mean of almost $6,000 a yr in insurance coverage, which is almost thrice what they paid in 2019. Compared, the typical U.S. owners insurance coverage coverage was roughly $1,700 in 2023.

Compounding the rising insurance coverage prices is the truth that many insurers and reinsurers have made the choice to depart the state. These firms have cited the current uptick within the quantity and severity of hurricanes and different weather-related disasters impacting the Sunshine State.

“Florida is seeing notably extra hurricanes, so steady years of poor expertise, that means losses for the insurance coverage carriers, they haven’t any alternative however to extend these premiums,” stated Sean Kent, the senior vice chairman of insurance coverage at FirstService Monetary.

“Moreover, there are only a few carriers which can be prepared to take part and insure a few of these models, so accessibility to protection has been diminished considerably.”

These rising prices are understandably impacting the flexibility or willingness of some consumers to buy particular properties.

“Insurance coverage is an expense that’s anticipated — however nothing as substantial as we’re seeing immediately,” stated Sheryl Houck, a Tampa-based eXp Realty agent. “We’re seeing contracts fall by way of throughout the due-diligence interval due to the sticker shock on insurance coverage prices, so that’s positively an issue.”

As a consequence of this, actual property professionals are bringing insurance coverage companions into their transactions a lot sooner than earlier than.

“It’s positively a big concern and problem,” Smith stated. “What we suggest is that earlier than you place a property beneath contract, you seek the advice of and get a quote in order that you recognize what your potential insurance coverage prices can be.”

Along with navigating rising insurance coverage prices with consumers, brokers stated they’ve additionally needed to discipline questions from previous shoppers concerning the rising premiums, who typically want assist in discovering methods to decrease their prices.

“We now have situations the place shoppers attain out and ask why they’re seeing a 62% soar of their insurance coverage, however we have now been in a position to assist them, whether or not that’s elevating their deductible or placing them in contact with a few of our different insurance coverage contacts,” Houck stated.

Regardless of rising insurance coverage prices that make homeownership in these markets extra expensive, native actual property professionals don’t really feel that that is behind the current uptick in new listings.

“We’ve seen lots of people transfer out of state to extra reasonably priced markets,” Houck stated, ”however it’s all relative as a result of we’re additionally seeing lots of people shifting in, as a result of our market is extra reasonably priced than New York or California.”

Nonetheless, if premiums proceed to rise, brokers really feel like this might turn into an even bigger problem, particularly for the world’s massive inhabitants of retirees.

“Once we take a look at individuals which can be getting nearer to retirement or have a hard and fast revenue, it turns into increasingly more of a priority,” Haydon stated. “Persons are actually being pinched with affordability.”

However whereas rising insurance coverage prices are definitely a problem for homeowners and consumers in Southwest Florida, Haydon stated the slower housing market is nice information for lots of consumers.

“I’ve negotiated a few of the most unimaginable offers for my consumers which can be out there proper now that I’ve seen because the 2008 housing market crash,” Haydon stated. “I had a purchaser final month and the property was listed as $475,000, however with the mandatory repairs, its worth was $410,000 and we had been in a position to negotiate a suggestion for $410,000.

“Usually, I’d inform consumers that if they’re 10% off the checklist value, they’re dealing in several realities than the vendor.”

Haydon stated she has additionally lately had presents accepted with sale contingencies, closing value coverages and a wide range of different vendor concessions.

Though issues have slowed from the peak of the frenzied post-pandemic market, native brokers are optimistic about the place the market is headed this spring and summer season.

“It is extremely busy. Actually since Jan. 1, the spigot has turned on,” stated Dyan Pithers, co-founder of The Pithers Group, a Tampa-based and Coldwell Banker Realty-brokered agency. “There are a number of consumers out there, and we’re actually specializing in displaying worth to sellers to get these listings on the market so there are properties for consumers to buy. It will be a very robust spring and summer season.”


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