According to a new study by Zillow, Florida has overtaken New York to become the second most-valuable United States housing market.
Zillow said the total value of U.S. housing rose more than US$2.6 trillion in the past year. This has defied predictions of higher borrowing costs leading to a prolonged slump. Instead, nationwide prices have hit a new high via low supply levels, enhanced by lock-in effect which has left current mortgage borrowers reluctant to give up their low-cost loans
According to Financial Post, the gains haven’t been evenly spread across the country. In California, which contains about one-fifth of the U.S. housing market, prices have declined since June 2022. But in Florida, the value of residential property has risen US$160 billion in that period — pushing the Sunshine State ahead of New York in the national rankings.
“Despite the presence of higher mortgage rates, which deterred some home shoppers and kept many existing homeowners on the sidelines, enough buyers remained to keep the market moving,” wrote Orphe Divounguy, a senior economist at Zillow.