All articles tagged with #housing markets
The US housing market is shifting, with Northern cities like New Haven and Norwich heating up due to limited inventory and rising prices, while Southern markets, especially in Florida, are cooling down as affordability issues and insurance costs deter buyers. The Bankrate 2025 Housing Heat Index highlights these trends, showing a reversal from previous years where Southern markets were dominant.
Home insurers are pulling out of the housing markets in Florida and California, causing concerns for homeowners and potential buyers. The insurance industry in both states is facing challenges due to increased construction costs, growing catastrophe exposure, and a challenging reinsurance market. This has led to higher insurance premiums and limited coverage options for homeowners. A survey by John Burns Research and Consulting revealed that insurance concerns are somewhat slowing new home sales in Florida and California. Buyers are increasingly concerned about the availability and cost of homeowners insurance, which is exacerbating the affordability issue in these markets. The impact of insurance concerns on housing demand could lead to more people moving out of California and fewer people moving to Florida.
Zillow is optimistic about the U.S. housing market, predicting a 6.3% increase in home prices over the next year. Their forecast model identifies 48 regional housing markets that are expected to see even greater increases of 7.0% or more. These markets have tight inventory levels and relatively better affordability compared to other areas. While some firms disagree and believe home prices have more room to decline, Zillow's model has consistently been on the bullish side.
Zillow's forecast model predicts a 4.8% jump in US home prices between April 2023 and April 2024, with only 10 of the nation's 400 largest housing markets expected to see a decline. Zillow expects 390 regional housing markets to see a home price increase, with 37 markets expected to rise by at least 7%. The reason for the bullish outlook is due to tight supply and favorable demographics, despite affordability remaining pressurized. While some firms expect a mild correction this year, Zillow and CoreLogic expect national home prices to rise over the coming year.