A slowdown of the Florida housing market in June is causing concern among a majority of homebuilders in the Sunshine State, according to a recent survey.

Asked about the state of their local new construction market, 31 percent of Florida homebuilders told housing market research website Zonda that June had been “slower than expected but not worrisome,” as reported by journalist Lance Lamberts.

Sixty-nine percent, on the other hand, were a little more pessimistic about last month, saying it had been “slower than expected and causing concern.”

These numbers reflect growing apprehension among homebuilders that several existing factors, including a surge in inventory, stubbornly high mortgage rates, and skyrocketing insurance premiums, are increasingly leading toward a slowdown of Florida’s housing market.

Last month, 8 percent of Florida homebuilders thought the market was stronger than expected in May; 15 percent thought it was on track with expectations; 38 percent found it slower than expected but not worrisome; and 38 percent found it slower than expected and causing concern, according to Zonda. The share of those worrying has nearly doubled in the past month.

Newsweek reached out to Zonda for comment via email on Friday.

While home prices at the state level were still up 3.1 percent year-over-year in May, the latest data available on Redfin, with the median sale price of a home at $420,100, homebuying demand has cooled down as supply has grown.

According to Redfin, the number of homes sold in May fell 2.5 percent year over year, while the number of homes for sale rose 40.4 percent. In the same month, the number of homes selling above list price (11.8 percent) dropped 4 percentage points year over year. Thirty-two point four percent of homes had price drops, up from 26 percent a year earlier.

Homebuilders appear justified in their concerns. Earlier this month, Raymond James—one of the biggest investment banking firms in the U.S.—lowered its rating for Lennar from “Outperform” to “Market Perform,” cutting the homebuilder’s projected annual revenue by 13.95 percent to $30,164,000 from its previous expectations.

“Margin headwinds and surging Florida inventory leave us cautious,” the company wrote in a research note shared with Newsweek.

“We believe the situation regarding Florida’s surging resale inventory (now +70 percent year-over-year, primarily related to soaring insurance rates and property taxes), now warrants an added layer of near-term caution,” the bank said. “Particularly given that LEN [Lennard] has a uniquely dominant market share position in Florida (~25 percent of homebuilding revenue, by our estimate).”

While builders worry, buyers can hold on to the hope that homes will become cheaper across Florida. In some cities, buyers are already beginning to have the upper hand, as backed by a recent study that found eight Florida cities in the top 10 of the metropolitan areas where homes are selling with the most below the asking price.