|
|
Post by ferris1248 on Mar 26, 2024 8:47:06 GMT -5
"According to a recent Redfin report, Florida's condominium market is in a state of freefall. Every indicator shows evidence of a market struggling to come to terms with a new reality. First, condo listings have increased by 30% in comparison to the same period one year ago. Another shocking aspect of the report is the extent to which prices in some of Florida's largest markets are retreating in comparison to condominiums nationwide." "Tampa condominiums are selling for an average of 1% less ($235,000)." "Miami condominiums are selling for an average of 2.5% less ($385,000)." "Orlando condominiums are selling for an average of 4.8% less ($200,000)." "Jacksonville condominiums are selling for an average of 6.5% less ($254,000)." "The culprit for this rapid cooling of the Florida condominium market is a squeeze play that savvy buyers are choosing to steer clear of. First, Florida has the highest homeowner insurance premiums in the country, with the average Floridian paying an estimated three times more than the nationwide average. Second, the only expense rising faster than the insurance premiums are homeowners association (HOA) fees on many Florida condominiums." "Since the collapse of the Surfside Towers in 2021, many Florida condominium communities have been dramatically raising HOA fees to cover both the cost of rising group premiums and assessments for needed maintenance. That's assuming HOAs can find an insurer willing to write a policy for the community. In many cases, insurers will only cover communities after they make numerous (and costly) repairs or upgrades to existing facilities." "Orlando-based Redfin agent Juan Castro summed up the problem, saying, "Condo costs are shocking. Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It's causing buyers to rethink their plans." Failure to pay HOA fees can lead to foreclosure, which is why buyers are taking a hard look at the numbers and offering less for Florida condominiums. Many are avoiding the Florida condo market entirely." "The most brutal irony of all is that despite Florida condominium prices being down compared to a year ago, they are still higher than they were during the pandemic. Add that to spiraling HOA fees, insurance premiums and interest rates, and you end up with a perfect recipe for buyers collectively hitting the pause button on Florida condominiums. Unfortunately for sellers, the new reality is hitting them in the pocketbook." finance.yahoo.com/news/floridas-condominium-market-becoming-disaster-171447434.html |
|
|
|
Post by swampdog on Mar 26, 2024 8:57:02 GMT -5
My wife was pestering me to buy a condo on Siesta Key about ten years ago. After doing the research I kinda figured the whole insurance thing would unfold like it has. However, I didn’t fathom the HOA issue. I’m happy to not have been worrying about the costs to maintain and insure the thing. So maybe I made a good financial decision for once, and broke my cycle of buying high and selling low…
|
|
|
|
Post by cyclist on Mar 26, 2024 8:58:06 GMT -5
Only person I know with a condo is right at Honeymoon island on Gulf coast. Can't sell without a big loss and new condo FEES are eating them up. Can't charge enough rent to cover costs.
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Mar 26, 2024 9:39:45 GMT -5
When the overhead on a property goes up and the net return goes down the value of the property falls. Real estate 101.
Rising interest rates also drive down prices. In the case of our area the high interest rates have stabilized prices. They were flying up so fast the appraisers couldn’t get a hold on current market value from month to month.
|
|
|
|
Post by olmucky on Mar 26, 2024 9:44:09 GMT -5
Based on some of the HOA I’ve been told, I imagine that’s the biggest issue.
Some are just outrageous
|
|
|
|
Post by madm002 on Mar 26, 2024 10:24:32 GMT -5
Depends on location and level. The one I owned and sold to my son has gone up 100% in 5 years, the fees are not horrible and he can get insurance. But not on the beach and not fancy, just a working persons place to live. YMMV
|
|
|
|
Post by mapper on Mar 26, 2024 10:54:43 GMT -5
I prefer to own something other than airspace. In a condo you just own that.
I'd rather own and be responsible for my own maintenance than maintenance on shared elements, and common areas , wiring, air conditioning, pool, parking, etc.
Nothing wrong with those who make the choice, but not for me.
|
|
|
|
Post by gardawg on Mar 26, 2024 11:08:32 GMT -5
Exactly ...
owning a condo is like paying rent ... you buy it but you still have to keep paying for it.
|
|
|
|
Post by PolarsStepdad on Mar 26, 2024 19:33:30 GMT -5
I worked in Panama City during the condo boom around 2004. Those condos were being sold 3 times pre-construction. Doubling in price each time. I said then that was not sustainable. I was laughed at. Things were good for about 5 years. Then 2008 came and slabs became ghost towns over night. Funding was GONE just like that. Bankruptcies galore. Here it is almost 20 years layer and there are still abandoned slabs and condo hulls standing down there. After some of the shoddy shit I saw go on in the building process of the one I worked on you couldn't give me one of those pieces of shit. Not that I want one anyway. The cheapest units where in the middle of the building. It was barely wide enough for a bathroom a wet bar and a pull out couch. Definitely for someone who just wanted to say "I have a condo on Panama City Beach" but really couldn't afford it. The end units with 2-4 bedrooms were all 1M+. Until 2008 then you couldn't give them away. I'm willing to bet between insurance and owners fees now it's got to be astronomical to own one.
|
|
|
|
Post by PolarsStepdad on Mar 26, 2024 19:36:55 GMT -5
It has long been my fantasy to own a small house in St Andrews. A small older wood home I could gut and remodel and have a place a block or two from the boat ramp(s) on the bay. The other side of the bridge on " the beach" sucks. No access to the water. No where to park a boat. And tourist, tourist, tourist. But with insurance like it is and property taxes I can't see it happening now
|
|
|
|
Post by luapnor on Mar 28, 2024 15:16:34 GMT -5
Did the Surfside building collapse have any impact on Condos or are Condos simply the canary in the coalmine? Condos are usually the first housing units to recover after a housing price recession... are they the first to collapse too?
|
|
|
|
Post by Mango Man on Mar 28, 2024 17:36:55 GMT -5
We have a condo on the H2O in Isla Del Sol, part of the Golf course and just over the bridge from Tierra Verde where our house is. As in many situations not all condo's are equal.
We have been affected by poor HOA management but nowhere's near many of the others, we've solved part of that problem. Has insurance gone up? Yes, but doable. We'll eventually do a seasonal rental and pay for all expenses and make a small profit. The market will return, no doubt.
|
|
|
|
Post by Mango Man on Mar 28, 2024 17:41:04 GMT -5
Did the Surfside building collapse have any impact on Condos or are Condos simply the canary in the coalmine? Condos are usually the first housing units to recover after a housing price recession... are they the first to collapse too? Yes, it did. And it wasn't necessarily a bad thing as many HOA's just kept kicking the can down the road on many things. |
|
|
|
Post by conchydong on Mar 28, 2024 17:47:15 GMT -5
Even though I am a senior and don't care to do maintenance on my house, I still do it. I could not live in a Condo even if it was for free. I can't deal with the rules and the people that like to enforce them. Couldn't live in a HOA either. I will never live in a place like the Villages also.
|
|
|
|
Post by Mango Man on Mar 28, 2024 18:00:15 GMT -5
You might like the Villages   |
|
|
|
Post by TRTerror on Mar 28, 2024 19:26:38 GMT -5
I could do The Villages just for the Tang but a condo...forget it.
I've spent years in different Condos on Marco and Naples. Your Neighbor is 10 feet away and you got to get dressed up and comb your hair just to check your Mail down in the Lobby.
Forget a 100 yard Rifle Range and growing Weed in the back yard....
|
|
|
|
Post by GaryS on Mar 29, 2024 6:34:05 GMT -5
My 92 year old mother lives in a condo. Best place for her,they are in a 50 year inspection and her unit had no problems. The management company does a good job of maintaining the place. The board had a president that was spend happy a few years ago doing things that really didn't need doing and cash on hand fell a little below what they needed, but it is back where it needs to be and a new board is in place.
|
|
|
|
Post by johngalt on Mar 29, 2024 8:06:08 GMT -5
It has long been my fantasy to own a small house in St Andrews. A small older wood home I could gut and remodel and have a place a block or two from the boat ramp(s) on the bay. The other side of the bridge on " the beach" sucks. No access to the water. No where to park a boat. And tourist, tourist, tourist. But with insurance like it is and property taxes I can't see it happening now You are absolutely right about the condo bust on PCB. I told everyone I knew the same thing about it being unsustainable and I’m just a dumb truck driver! A number of people I knew went to the poor house in ‘07-08. I live in St. Andrews and it is the perfect spot in Bay county. Three boat ramps within five minutes from the house, city marina/ramp a couple minutes further. From my house to the ramp and to the pass is a total of around 30 minutes. Try that on PCB, no way. And I bought my house in 1994 and paid $60K. 😉 |
|
|
|
Post by mapper on Mar 29, 2024 8:51:09 GMT -5
It's nice to be able to pee in the yard..and being close to a ramp.
I do miss jumping in the boat and going on a beer run though..
|
|
|
|
Post by luapnor on Mar 29, 2024 10:40:07 GMT -5
Even though I am a senior and don't care to do maintenance on my house, I still do it. I could not live in a Condo even if it was for free. I can't deal with the rules and the people that like to enforce them. Couldn't live in a HOA either. I will never live in a place like the Villages also. My uncle just gave up trying to take care of the his house that he and my Aunt have lived in since 1974 and they moved into a Condo. They are both 96. The yard work became too hard to do. |
|
|
|
Post by PolarsStepdad on Mar 29, 2024 11:10:50 GMT -5
It has long been my fantasy to own a small house in St Andrews. A small older wood home I could gut and remodel and have a place a block or two from the boat ramp(s) on the bay. The other side of the bridge on " the beach" sucks. No access to the water. No where to park a boat. And tourist, tourist, tourist. But with insurance like it is and property taxes I can't see it happening now You are absolutely right about the condo bust on PCB. I told everyone I knew the same thing about it being unsustainable and I’m just a dumb truck driver! A number of people I knew went to the poor house in ‘07-08. I live in St. Andrews and it is the perfect spot in Bay county. Three boat ramps within five minutes from the house, city marina/ramp a couple minutes further. From my house to the ramp and to the pass is a total of around 30 minutes. Try that on PCB, no way. And I bought my house in 1994 and paid $60K. 😉 I am quite envious of you sir. |
|
|
|
Post by garycoleco on Mar 29, 2024 16:33:22 GMT -5
Its all about location. About 10 years ago my sister in law bought a condo in Destin for 300k. The day after closing she turned it over to a management company as a rental. They're clearing $10k per month and it's already getting booked for March '25
My brother in law lives in the Ritz in Coconut Grove. He's bought and sold several condos in the building for a long time. He kills it everytime. For him it's about the security. He's in the public eye and travels a lot. His common area fees are $2700/month
|
|
|
|
Post by TRTerror on Mar 29, 2024 17:38:26 GMT -5
I watched the Folks in Hide Away Beach on Marco Island come over to the new Condos we were building right next door and buy several of them..just to resell in a year.
They made out like Bandits..
Seems it takes money to make money...who Knew
|
|
|
|
Post by mackeralsnatcher on Mar 29, 2024 17:53:03 GMT -5
bout 20 years ago I wanted to buy a condo on St. Pete beach. I told the RE agent , "find me something around a hundred grand." He found one at 125, the wife nixed it and now that condo is worth 450K  I would have no problem living in a condo, the wife however is kinda set in her ways and we have lived in this house since 1980. With her recent health issues my son is trying to convince her to move up with them in Inverness. She seems to be interested but really doesn't want to leave "her house" The Land is sorta cheap and we could buy a few acres right next to my son for a decent price. Lots of shit to sort out BUT I'm all in on moving up there since i could use the help caring for her and having property with chickens, pigs and a garden would be great. it's all pipe dreams and up in the air for now, but we shall see. |
|
|
|
Post by PolarsStepdad on Mar 29, 2024 18:21:01 GMT -5
I watched the Folks in Hide Away Beach on Marco Island come over to the new Condos we were building right next door and buy several of them..just to resell in a year. They made out like Bandits.. Seems it takes money to make money...who Knew Oh people were buying and selling in Panama City too. Some times doubling or trippling their money. Some got wealthy. But more than a few played hit potato to the end and got bit. I worked with one such gentleman. My rule for any investment is double your money and get out. If you triple it probably time to start looking for the exit door. Of course I'll never be rich but I won't get stuck upside down on a condo I can't give away either |
|
|
|
Post by pinman on Mar 29, 2024 18:41:49 GMT -5
An axiom my Dads boss, who started the city of Royal Palm Beach and owned over 40,000 acres there, told him - "You will always make money on real estate as long as you can afford to hold on to it" True words.
|
|
|
|
Post by Captj on Mar 30, 2024 7:35:27 GMT -5
We have a small condo on St. Pete Beach and could have bought the one next door for same price we paid in 2019. Passed on it - big mistake. Worth a hundred and fifty grand more today. Great building and we enjoy staying there. It also pays the bills on our trailer in the Keys.
|
|
