Florida Homeowners Are Desperately Trying to Move Out

Florida has the highest number of “motivated” sellers listing their properties on real estate marketplace app Zillow. As of February 28, there were 4,928 listings for Florida properties whose sellers described themselves as “motivated,” meaning they would accept lower offers from potential home buyers to sell quickly. Motivated sellers can be driven by financial loss, divorce or separation, job relocation, or other personal issues. Florida has more listings in general than the rest of the U.S., with a total listings of 202,000 properties.

The number of motivated sellers in Florida suggests that a high number of homeowners are trying to get rid of their property quickly. The National Association of Realtors (NAR) has been advocating in Congress for a gradual increase regarding flood insurance premiums. Property insurance readjustments and retired homeowners on fixed income could induce some additional sellers.

One reason homeowners might be willing to sell despite the less than ideal market conditions might be the high insurance rates in the state, which have risen dramatically in the past few years. According to data from the Insurance Information Institute (Triple-I), home insurance costs have increased by 102% in the past three years in Florida, and they are three times more expensive than the national average. Home insurance in 2023 was about $6,000, the highest premium in the country. Insurance expert Lisa Miller believes things will get better in 2024, and motivated sellers in Florida are unlikely to have to compromise for a much lower price than the one they originally listed.

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