Tampa ranks second in U.S. for 'cooling' housing market

TAMPA, Fla. - After a tough couple of years for homebuyers, with housing prices soaring in the sought-after Sunshine State, cities on the West Coast are starting to see a significant cooling, with supply rising and demand falling. Tampa ranks second in the nation for cooling housing prices.

North Port, Tampa, Cape Coral and Orlando are all cities ranked in the top 10 in the nation for a slowing housing market, according to a new report by Redfin. 

A real estate broker in Tampa said it could be happening as natural disasters worsen, new construction soars and the pandemic-era homebuying boom fades. 

READ: Here are the best and worst cities to rent in America, according to study

"No doubt there’s hurricanes and storms that roll through this area, and because of that, insurance costs have spiked, and people are souring to purchasing because of insurance costs, interest rates are higher than they were even a year ago. For those two reasons, I think things are slowing down," said Doug Waechter, Colliers Real Estate broker. 

A Florida mover – who also sells home insurance – said he hasn’t seen costs this high in his 27 years of business. 

"A lot of cash buyers in some cases are opting to not insure, which is not smart, obviously, but that is something that people are considering," said Spero Georgedakis, Good Greek Moving and Storage's CEO. 

Florida’s west coast price drops are welcome news for all Floridians and especially first-time homebuyers. 

MORE: Florida woman launches home matching platform to help others find perfect place to live

"My kids are struggling trying to find places to live in the market… it’s not easy," said one Bartow resident. 

"It’s still up from where it was pre-pandemic, and you’re talking about the west coast of Florida… it’s still a great investment… it’s just the numbers aren’t showing the same growth as a year ago," said Waechter.

Of course, Floridians still face home-buying challenges – like elevated mortgage rates and affordable flood insurance. But, many hope it’s a step in the right direction for Tampa’s housing market.

WATCH FOX 13 NEWS:

SIGN UP: Click here to sign up for the FOX 13 daily newsletter