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
"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