Florida Housing Market unwinding inventory spiking!

Florida’s housing market is facing significant challenges, as inventory levels are rising past pre-pandemic figures. In Lee County, Florida, there are over 25,000 homes for sale. Job losses, inflation, and tariffs are exacerbating the situation, leading to widespread price cuts that have dashed the hopes of sellers who once commanded high prices for their homes. Additionally, homebuilders are encountering a soft market. D.R. Horton, one of the nation’s largest homebuilders, reported disappointing first-quarter earnings on Thursday and has revised its full-year forecasts downward. Executives indicated that sales at the beginning of the spring season have been slower than anticipated. Several other homebuilders are expected to announce their results in the next two weeks. D.R. Horton (DHI) became the latest builder to express concerns about the housing market after falling short of estimates. The company warned investors about a sluggish spring selling season, which is typically a critical period for home sales. D.R. Horton’s stock price has dropped 37% over the past six months, with sales orders in the Southeast down 25% year-over-year.

“I think we all need to come together and adjust to offer homes that the market finds appealing and affordable,” said D.R. Horton CEO Paul Romanowski this week. He added, “We’ll have to see how this plays out and collaborate with our supply partners and vendors to navigate the situation.”