Homeowners in Florida and Texas are more likely to sell their properties for less than their asking price than anywhere else in the country, according to a new report by real estate brokerage Redfin.

Nearly 2 in 3 homes (64.2 percent) at the national level sold for less than their original list price in February, up from 60.9 percent a year earlier. In West Palm Beach, Florida, 88.2 percent of homes sold below their list price in the same month—making the city the one with the highest shares of homes fetching less than their asking price in the country.

Why It Matters

The Florida and Texas housing markets boomed during the pandemic, when the two states attracted an influx of out-of-state newcomers looking for sunny weather, affordable housing, and lower taxes.

To meet increased demand, Florida and Texas have been building more new homes than any other state in the union in recent years. But in-migration (the process of permanently relocating to another part of the same country) to the two states has slowed down significantly since the end of the pandemic, and historically elevated home prices and stubbornly high mortgage rates have put a damper on demand.

The two states are now facing a slowdown in their housing markets, which experts think is a natural “price correction” following years of overheating.

What To Know

This year’s housing market is shaping up to be a buyer’s one, according to experts, as inventory is growing and mortgage rates continue hovering between 6 percent and 7 percent. Under these circumstances, sellers trying to fetch as much as they can for their properties are facing cautious buyers and being forced to slash their originally listed prices to off-load their properties.

Nationwide, the number of homes selling for above their originally listed price has fallen to 20.5 percent in February from 22.8 percent a year earlier, according to Redfin. Fewer homes (15.4 percent) were also selling for exactly their original list price compared to last year (16.3 percent). That is the lowest February share since 2019, before prices boomed during the pandemic.

The same dynamics that can be observed at the national level are much more evident in Florida and Texas, where inventory has grown much faster than the rest of the country.

In Florida, the number of homes sold in February was down 10.2 percent year-over-year for a total of 25,209, while supply had grown by 18.5 percent for a total of 224,921 homes for sale.

In Texas, the number of homes sold in February, at 21,892, was 6.2 percent lower than a year earlier, while supply was up 16 percent, with 151,335 of homes for sale.

In the Sunshine State, only 9.3 percent of homes sold above list price in February, down 1.6 percentage points year-over-year, while 32.1 percent of homes for sale had price drops, up 2.2 percentage points year-over-year.

In the Lone Star State, 11.5 percent of homes in February sold above list price, down 1.1 percentage points year-over-year, while 28.2 percent had price drops, up 2.2 percentage points from a year earlier.

The U.S. metropolitan areas with the highest share of homes selling for below their asking price were concentrated in these two states. The top three cities for homes fetching below their asking price were all in Florida: West Palm Beach (88.2 percent), Fort Lauderdale (85.7 percent), and Miami (83.7 percent).

Also in the top five were two Texas metros: San Antonio (81.2 percent) and Austin (80.2 percent).

What People Are Saying

Redfin wrote in the report: “Florida and Texas likely top the list in part because the supply of homes for sale isn’t as constrained as it is in other metros. They have been building more housing than other states, and stale inventory has been piling up, giving buyers bargaining power. Florida has also been grappling with intensifying natural disasters, skyrocketing HOA [homeowners association] fees and surging insurance costs, giving some buyers pause.”

Nick Gerli, the CEO of the real estate data platform Reventure App, wrote on X: “Housing inventory in Texas keeps exploding. Listings are now at [their] highest level in a decade. Up 25 percent YoY [year on year] and 30 percent from pre-pandemic norms. Such high supply is now causing downward price pressure all across the state. Don’t be surprised if markets like Dallas, Houston, and San Antonio start to trend into negatives on price growth.”

He previously told Newsweek: “Inventory is up 33.9 percent YoY in Florida as of February 2025 according to data available on Reventure App. New listings continue to rise due surging insurance and HOA fees. Meanwhile, demand is down due to a slowdown in people moving to the state. Prices are dropping in most counties. [ …] Reventure App anticipates an -5.0 percent YoY drop statewide in 2025.”

Denny Grimes, president of Denny Grimes & Team at Keller Williams Realty, told Gulf Shore Business: “We’re actually now in a buyer’s market, and we’ve been in one since the fourth quarter of 2023. It kind of sneaked up on us. We were praying for more inventory, and we have it right now. So, the market is resetting. And that’s the key to my message.”

What Happens Next

While the number of out-of-state Americans moving to Florida and Texas has slowed down since the pandemic, domestic migration to the popular two states is still ongoing.

Housing experts expect the two states to face a slowdown in home price growth this year—as well as declines in some of the most-overvalued metros—but not a full-out crash.