Is This Cycle of MASSIVE Change Over?
In my most recent video, I share a handful of things you should consider before buying real estate in (South) Florida.
Summarizing The Real Estate Data
* Florida homeowners insurance is riddled with lawsuits, bogus claims, vendors who abuse the system for their own good. Then there are hurricanes and mother nature, old roofs, bad materials, mold. Now this.
* HOA Fee’s that go one way – up. And with the the 2021 Surfside building collapse, fee’s continue to go up across the state. But, it’s now happening with smaller increases.
* Assessments – this ties into HOA Fee’s. Imagine getting a bill to redo rusted balconies, parking lots, pool decking, impact glass windows… all at once. I’ve seen assessments from $1 million to $40 million. By the end of 2024 every condo must have their reserves fully funded. (The good news is that we may be near the end of rising HOA and assessments and back to some “normalcy”)
* Climate Change – it’s a real thing. Miami flooding is normal and regular. Cape Coral Hurricane Ian was the most expensive in history costing over $113 billion. The April 2023 Ft Lauderdale storm where it dumped 25 inches of rain in 24 hours. I could keep going, but…
* South Florida real estate prices are at a peak – or darn near. 2011 was the year to buy ANY real estate at 30 cents on the dollar. Today it’s more like $1.30. In the last 24 months, South Florida real estate went up the most in the US. You may find this essay interesting.
The era of ridiculous insurance and HOA fee increases, one-time massive assessments, and double-digit real estate price gains may all be nearing and end in this cycle. This is real estate data you can’t ignore. These anomalies don’t happen often, or at the same time (Climate change is a conversation for another essay. You’ll see more from me on this topic moving forward).
So, if you’ve been waiting for real estate data to change, we could be entering a new era where these issues are under control and behind us. After all, things do change.
Speaking of change, the graph above shows the median list price in greater Delray Beach. One year ago it was $470k, then fell 25% to $350k. Today it sits at $402k. This real estate data shows big, radical price swings.
You may not be comfortable in a world of double-digit percentage swings in short time periods. But, it may be a time where you may find deals starting to pop up. Regardless, hang tight and stay in the game. This too shall pass…
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*** Want to Buy LAND in downtown Delray Beach and build your own home? I have a nice Double-Lot option for you to consider.
*** Every Wednesday night at Old School Square you’ll find the Drum Circle. And tomorrow night you can enjoy This week’s Sunset Concert Series…
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*** Your Weekly Inventory Real Estate Data Update ***
* 4 years ago there were over 54,000 properties available in S. Florida
* It bottomed in February 2022 at 14,485… a 73% drop
* Last week there were 27,627available… a 102% rise in 17 months
* This morning’s Inventory is 27,347.
