Re: Time to invest in Florida again??? - Posted by Carl
Posted by Carl on January 12, 2007 at 05:33:34:
As one who resides in south Florida, I am of the opinion we are no where near a bottom in my area, and probably much of the state. Your Realtor friend has an agenda. He has a vested interest in an appreciating market.
But the reality here is ugly. We had a five year run up in prices. To the tune in some areas of 30% annually. This alone has made housing unaffordable for many. That run up in prices resulted in a comparable run up in property taxes. That house selling for the median price of around $360K will see its taxes jump from, say, $2,200/year to $6,500/year! Ouch!
And if this isn’t enough, the wild card in all of this is homeowners insurance. Since Wilma blew through my area in October, 2005, the average homeowner has seen their insurance double. And that’s a conservative estimate. Personally, I have had my insurance rates qaudruple! Yes, I said quadruple. I am soon to be paying $8,500 per year because my insurer has notified the state they are pulling out and will no longer renew any existing policies. That leaves me, along with several hundred thousand other Florida homeowners, in a bind. So we are forced to go with the insurer of last resort, Citizens. This is a state run agency and, as you can imagine, is FUBAR.
So, no, I don’t think this market is anywhere near a bottom. In fact, yesterday’s Sun-Sentinel ran an article which stated that, for the first time in thirty years, the moving industry is showing a net increase in households moving OUT of the state, versus those moving in. Here’s the link for those of you interested: http://www.sun-sentinel.com/business/local/sfl-zmoving11jan11,0,4784374.story
As I said, the market here is ugly at present, and I don’t see it getting better any time soon. My two cents. Thanks for listening.