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Zillow's 21% Value Slash Devastates Florida and Texas Markets
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Dec 11, 2024
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View Video Transcript
0:00
the American dream just got a rude
0:02
awakening imagine cutting your
0:04
properties price with
0:07
21% just to get a sale that's the harsh
0:10
reality for millions in Florida and
0:12
Texas as Zillow reveals property values
0:16
are dropping by a staggering
0:19
21% this isn't just a number it's a
0:22
financial earthquake that's shaking the
0:24
foundation of the housing market we are
0:28
not only talking about homeowners but
0:30
buyers agents and the entire American
0:34
economy so stay tuned as we uncover the
0:38
reasons behind the crash review whether
0:41
these price slashes are confined only to
0:44
the southeast and discuss when if ever
0:48
the market will
0:49
recover the cause behind the crash first
0:52
things first what's the fuel behind this
0:55
economic
0:57
Firestorm inventory influx
1:00
during the pandemic as companies slowly
1:02
opened up to the work from home culture
1:05
employees from big cities like New York
1:07
and La dished their condos and smaller
1:10
apartments for freedom on the sprawling
1:12
shores of the southeast to be exact
1:15
Florida had the highest net migration
1:17
total with population influx Rising
1:20
above 200,000 and Texas it followed
1:25
close with a net total of approximately
1:27
170,000
1:30
beside the scenic views these settlers
1:32
were on the hunt for lower taxes both
1:35
Texas and Florida don't have individual
1:38
income tax and overall low standard of
1:41
living which both States possessed at
1:44
least at the time the increase in
1:46
population meant that home builders and
1:49
Real Estate Investors had a new
1:51
opportunity to increase their portfolio
1:54
and man did they rise the test in 2021
1:59
alone the State of Florida authorized
2:02
the construction of over 200,000 new
2:05
units but the inventory hike came with a
2:08
ridiculous price tag home prices in
2:12
Texas climbed by a staggering 30% while
2:16
Florida doubled that and saw a price
2:18
increase of 60% this greatly hampered
2:22
affordability and so became the first
2:25
crack in a crumbling Market first yet
2:28
certainly not last
2:30
some offices reopened calling employees
2:33
back dwindling down the demand for
2:35
housing but increasing home and car
2:38
insurance and a tense political
2:40
landscape are what broke the Cam's back
2:45
interviews from NBC depict a rather
2:47
stormy climate for the Sunshine State
2:50
one interview states that she's moving
2:53
back home because frankly she doesn't
2:55
want to lose friends over Politics the
2:58
worst part this this former resident is
3:01
selling her house at a $40,000
3:04
loss but she is not the only one who is
3:07
worried about when the market will
3:09
bounce back when will the market recover
3:12
not anytime soon according to Zillow
3:15
more Florida residents are selling their
3:17
houses at insane discounts this four
3:21
bedroom Four B in Dallas Texas is
3:24
selling at a
3:25
$21,000 discount this one a whopping 20
3:30
$5,000 and in Texas the story is no
3:34
different here's a house in Freeport
3:37
that has been on the market for over a
3:39
month it is a nice three bad three Bath
3:42
House near the beach Zillow says the
3:45
price has been cut by a whopping
3:48
$225,000 and check out this lak house
3:51
with four beds and three baths the
3:53
seller has cut the price by
3:57
$100,000 all these are attempts from s
4:00
to secure a sale as we pivot from a
4:03
sellers Market to clearly a very buyer
4:06
Market as inventory prices rise to the
4:09
highest they have been since October
4:12
2020 and there are no signs of things
4:14
getting better if you caught our video
4:17
on the biggest real estate crash of the
4:19
century uh then you are familiar with
4:22
real estate investor author and CEO of
4:26
Cardon Equity Grant cardo who said that
4:29
we are currently in the greatest and I
4:31
repeat the greatest real estate
4:33
correction of his lifetime I will leave
4:36
a link to that video in the description
4:39
chances are these Trends will continue
4:41
well into 2025 and 26 which could be a
4:45
big problem for Floridian and Texan real
4:48
estate agents but this begs the question
4:51
will the rest of the United States
4:53
housing market crumble too are other
4:56
states affected unfortunately the bubble
4:59
burst is not confined to the Lone Star
5:01
and the Sunshine States other states are
5:04
experiencing an inventory influx 2o
5:07
though at varying degrees if you look at
5:10
this table from
5:11
realtor.com California New York and
5:14
Georgia are also experiencing inventory
5:17
increases for example in May 2024
5:21
California had almost 50,000 active
5:24
listings but by July there has been
5:27
almost a 10,000 inventory hike and if
5:30
you look at the prices they are steadily
5:33
declining in May the price was close to
5:36
$800,000 but in July homeowners had cut
5:40
prices by almost
5:42
$10,000 and if we consider the current
5:45
market Trend it is safe to assume that
5:48
as inventory continues to flood the
5:50
market the home values will continue to
5:53
nose dive but it is not all doom some
5:56
states are still on the good end of the
5:59
spectrum
6:00
in fact Nevada and South Dakota are
6:03
experiencing a negative sale inventory
6:05
growth the sale inventory growth is a
6:08
metric used to determine the rate at
6:10
which inventory is growing in a
6:13
particular area this negative rate
6:15
suggest that the number of listings is
6:17
decreasing and therefore is a good
6:19
indicator whether or not house prices
6:22
will continue to rise or decrease and if
6:25
we look at the home value growth rate
6:28
neverless it's at 6%
6:30
Which is higher than the rate depicted
6:32
in nearby States like Utah Oregon Idaho
6:35
and even California so should real
6:38
estate agents be looking for a career
6:40
change and if you are in the market for
6:43
a new home is now bad time to buy the
6:46
truth is no one can predict the future
6:49
what we know is that data suggests we
6:51
are on the brink of one of the greatest
6:53
recessions in over half a century how
6:57
can you stay up to date well hit that
7:00
notification Bell and that subscribe
7:02
button do you have any thoughts or
7:04
questions about this Market shift please
7:07
drop them in the comments below we would
7:09
love to hear your perspective and keep
7:11
this conversation going and remember
7:13
staying informed is your biggest defense
7:16
in these really uncertain times
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