Real Estate Prices Suffer In Miami, Tampa

By Douglas McIntyre • January 2, 2025

Matt Pexels

According to new data from Realtor.com, prices of homes for sale dropped by 1.8% in December, compared with the same month a year ago, to $402.502. The drop was severe in several markets, led by Miami, down 9.9% to $522,500. Prices in Tampa fell 6% to $395,000.

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Home inventory in Miami rose 45.5% compared to December of last year.

The price drop is almost certainly because homeowners are worried about hurricanes, and insurance companies have pulled out of areas most likely to have storm damage. In some Florida markets, home buyers cannot find insurance at all. This prevents them from getting mortgages.

Several northern cities had significant price increases. The price of homes for sale in Cleveland rose 9.1% to $239,950. Prices in Detroit rose 6.2% to $249,900.

Warm Weather, Low Taxes

While there is no conclusive proof, the US may be in the early stages of reverse migration. Florida has added population most years over the last several decades. Most people moved for two reasons. The first was the weather. The second was taxes.

Living in some northern cities has become much less expensive, and the weather is more temperate.