Atlanta Fed: Southwest Florida Housing Market in Correction

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On yesterday’s Federal Reserve Bank of Atlanta’s Economy Matters podcast, real estate specialist Domonic Purviance broke down the current state of both the national and Southeast housing markets. He noted that inventory is growing and house price growth is slowing thanks, in part, to buyer hesitancy stemming from economic uncertainty. As a result, affordability in the Southeast region is improving. However, he says the results across the region are mixed with markets like Atlanta and Nashville remaining strong, but Florida exhibiting some notable weakness.


In particular, Purviance singles out Southwest Florida as a market that is currently in a housing correction, with price declines in the mid-to-high single digits in some places, and identifies the condo market in Southwest Florida as significantly weak, with price declines of 20% seen in some areas. Interestingly, he references a slowdown in domestic migration to the Southeast as a factor thanks, in part, to a narrowing of the affordability gap between the Southeast and higher priced Northern markets, and points out that since “Florida is so dependent on people moving to retire or to have a second home or whatever it is, that a significant decline in domestic migration into Florida is going to have a more adverse effect on the housing market than any other place”. This was a wide-ranging interview and the transcript is well worth reading.

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