These 15 housing markets have the highest correction risks
Which states have housing markets at high correction risk?
According to Parcl Labs, 15 housing markets in the U.S. are "at risk" of a home-price correction in the coming fall and winter months. Notably, 13 of these markets are located in Florida, including Crestview-Fort Walton Beach-Destin, Miami-Fort Lauderdale-Pompano Beach, and Tampa-St5. Petersburg-Clearwater. Other states with high-risk markets include Alabama and South Carolina.
How many Florida cities are at risk of housing price corrections?
Thirteen out of the 15 housing markets at the highest risk of a home price correction in the coming months are in Florida, according to a recent Parcl Labs study1. The report identified markets showing signs of softening, with buyers in these areas having more leverage than in previous years. Factors contributing to the risk include a growing number of insurance companies leaving the state or raising their rates and a new state law requiring condominium inspections.
What factors are driving up home insurance premiums in Florida?
Factors driving up home insurance premiums in Florida include population growth, increased cost of living, higher probability of insurance companies having to make large payouts due to severe weather events, rising building material and repair costs, and fraudulent lawsuits. Additionally, many insurance companies are leaving the state or going out of business, leading to less competition and higher premiums.