Zillow's Market Heat Index: February 2025

[GON]

Zillow's market heat index: February 2025.

Index shows what numerous BITOGers reported, Florida is slowing down and showing ample signs of a buyers market. Florida has been so hot for so very long, not sure a buyer's market is holistically a proper description, as the vast majority of houses that closed in Florida over the past 30 days are high double-digit gains over the same home price in 2019.

Texas shows an indifferent single family home market, with the exception of the greater DFW area showing a Sellers' market. The Bay Area and Seattle showing a strong Seller's market. The Bay area had cooled down, and no showing strong demand again.

Northeast showing the strongest residential real estate market in the U.S. Like the upper Midwest, the real estate prices significantly lagged the gains in the South, Southwest, Rockies, West and the Pacific since 2019, so the hot market comes with a * compared to the South, Southwest, Rockies, West and the Pacific.

core of 70 or above = strong sellers market

Score from 55 to 69 = sellers market

Score from 44 to 55 = neutral market

Score from 28 to 44 = buyers market

Score of 27 or below = strong buyers market

 

[JoelB]

Interesting to see the Twin cities here in MN be a sellers market.

I thought a lot of people were migrating down to Florida, wouldn't that demand make it a sellers market? Maybe I've got it confused.

 

[GON]

Interesting to see the Twin cities here in MN be a sellers market.

I thought a lot of people were migrating down to Florida, wouldn't that demand make it a sellers market? Maybe I've got it confused.

This chart may help you connect the dots on why MN is doing well. An even better illustration is Illinois. Illinois has had over ten consecutive years of population decline, yet after 15 years of little single family home price appreciation, Illinois in the past 18 months has had single family home price appreciation beating the national average. How can that be, new home construction has been much slower than the rest of the nation, causing a housing shortage for the remaining residents that kept their domicile Illinois.

 

[Delta]

Interesting to see my market as "warmer". There is a limited amount of houses for sale, so very well could be a sellers market.

I do notice the houses that are for sale have older mortgages. Nearly none of us with 3% are even thinking about selling right now. House value after improvements on my house is $80-$100K in equity, but there's no way I'm selling right now with current rates.

 

[GON]

Interesting to see the Twin cities here in MN be a sellers market.

I thought a lot of people were migrating down to Florida, wouldn't that demand make it a sellers market? Maybe I've got it confused.

Also, if you purchased an existing single-family home in Minnesota 15 years ago for $500k USD, and a single-family home in Florida 15 years ago, on a MACRO basis the Florida house appreciated significantly more than the Minnesota house.

 

[Cropduster172]

Also, if you purchased an existing single-family home in Minnesota 15 years ago for $500k USD, and a single-family home in Florida 15 years ago, on a MACRO basis the Florida house appreciated significantly more than the Minnesota house.

The insurance issues need to be resolved in Florida.

 

[SC Maintenance]

Also, if you purchased an existing single-family home in Minnesota 15 years ago for $500k USD, and a single-family home in Florida 15 years ago, on a MACRO basis the Florida house appreciated significantly more than the Minnesota house.

Yes, I took a quick look at Case Shiller. Minneapolis home prices are up 35% since Jan 1,2020. Inflation is about 25% over that period, so really just a bit over inflation.

Orlando is up 60%. Miami is up 80%. I could look at more, but generally that describes Florida I think.

Additionally Florida is a retirement destination, and we have just passed peak baby boomer turns 65. Meaning there will be fewer new retirees every year going forward - at least people who are living here now retiring. So one of the main groups of inflow residents is slowing.

Lots of strange dynamics in Florida.

 

[IndyIan]

There's been a few articles here on canadian boomers getting priced out, with not well constructed condo's needing expensive repairs, rising insurance costs, low CAD, and things getting more expensive, and the unpredictable political situation, many are deciding its not worth it anymore, for the 3-4-5 months they are there.

 

[gfh77665]

Houston metro is in the middle, colored purple, but like any chart it can't tell near the full story. School districts in TX is a HUGE factor. Makes some properties highly fought over and some properties almost unsellable.

 

[SC Maintenance]

Houston metro is in the middle, colored purple, but like any chart it can't tell near the full story. School districts in TX is a HUGE factor. Makes some properties highly fought over and some properties almost unsellable.

Schools around here are weird. Charleston County Schools are some of the worst in the state - which is why I don't live in Charleston County. However now that my kids are grown I want to move to Charleston County - the city has caught my formerly quiet small town anyway. But its still very expensive? I wonder where all those people send their kids to school. Apparently they do private, or just don't care?