Redfin Corp's stock took a hit on Thursday, plummeting 5.01% during intraday trading, primarily due to the worsening housing market conditions in Florida, one of the company's key markets.

According to Redfin's latest report, Florida experienced a record high level of homes for sale in January, with inventory surging 22.7% year-over-year to 172,209 homes. The surge can be attributed to several factors:

• An influx of newly built homes for sale, as Florida has been building more homes than most states.
• Intensifying natural disasters, which have caused home insurance costs to skyrocket, prompting some homeowners to leave the state.
• A cooling in homebuyer demand, with pending home sales in Florida declining 9.3% year-over-year in January.
• A surge in condo inventory due to new regulations aimed at ensuring structural soundness, leading to soaring HOA fees.

While the overall U.S. housing market has shown some positive signs, such as slowing home price growth and declining mortgage rates, which could potentially boost buyer demand, the situation in Florida appears to be weighing heavily on Redfin's stock performance.