In one Florida city where new residents once flocked, “For Sale” signs now line every other block, according to a recent report from The Wall Street Journal. Foreclosures are on the rise, and open houses see no visitors.
It’s all happening in Cape Coral, a city with the “worst housing market in America,” according to WSJ.
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Just a few years ago, Lee County, where Cape Coral is located, had 3,500 homes available for sale, but one recent analysis found that there were 12,000 listed.
WSJ found that home prices have dropped 11% in two years through May, which is the most of any major metro area.
The city also has the most homeowners underwater in the country, with nearly 8% owing more on their mortgages than their homes are worth.
The WSJ attributes the change to previously over-inflated home prices, skyrocketing home insurance and property taxes, overbuilding, natural disasters, and remote workers returning to the office.
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“With so much supply, very little demand and a seller base where over 50% are cutting prices, I would expect this downward trend to continue,” Jason Lewris, Parcl Labs’ co-founder, told WSJ.
Read the entire report on WSJ.com.
