Florida real estate market It has been hammed by high price of home and increased insurance costs.

Home values ​​across the country are also expected to increase modestly this year, adding to the current state accessibility crisis, according to a recent report.

But despite the rise in prices, at least three Florida cities are expected to have a decrease, according to one Realtor.com Reportwhich cited the Cotatal of the Analytical Real Estate Company.

As the removal of property taxes in Florida could affect the state’s real estate market

These cities, Tampa, Winter Haven and West Palm Beach, are 70% likely to see prices fall, according to the real estate analytical company. The report classified them with a “very high risk” of decrease in prices, highlighting how the market is adjusted after the operation of prices in recent years due to increasing demand.

A house for sale in the Aqualane Shores district of Naples, Florida. (Photographer: Lisette Morales McCabe / Bloomberg through Getty Images / Getty Images)

Since then, migration to the state has been slowed. According to Hannah Jones, Realtor.com Economic Research Analyst.

Insurance costs in many parts of the state have increased due to the risk of property damage to an event related to the climate. Valuepenguin, a personal finance website and a lendingree subsidiary, reported that the homeowners in Florida pay some of the highest rates in the country, with the average cost of housing insurance at $ 2,207 a year.

Municipal beach of Naples in Naples, Florida. (Paul Harris / Getty Images / Getty Images)

Why this complex Florida area is becoming more popular for housing buyers

“Stack expensive insurance costs at the top of home prices and high mortgage rates He has promoted the cost of property in Florida out of reach for many buyers, “said Jones.” Last year’s catastrophic weather events in Florida can remain in front of domestic buyers, which could lead them to consider other places to put roots. “

A house for sale at West Palm Beach, Florida. (Marco Bello / Bloomberg through Getty Images / Getty Images)

As residents face so much financial tension, Florida governor Ron Desantis told social media that he would support the abolition of these taxes throughout the Sun state, but would require a constitutional modification.

“Property taxes are local, not states. Therefore, we should make a constitutional modification (it requires 60% of voters to approve) to eliminate them (which I would support) or even to reform -” Desantis published in X.

Jones in the meantime said the inventory has constructed significantly in Florida “Because newly built residences worked through the pipeline.”

This could be a good sign for potential buyers, as “a wide sale inventory of buyer’s demand suggests that housing prices will continue to fall as sellers try to attract the buyer’s attention.”

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Jones said that household prices will probably continue to continue as the market seeks balance, but as Florida is a large housing market, it will take time for the dynamics to be changed.

“Over the past three years, the inventory has recovered and prices have been reduced, which indicates that the market returns to balance,” he said.