{"id":4037,"date":"2024-05-08T08:41:36","date_gmt":"2024-05-08T12:41:36","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=4037"},"modified":"2024-06-16T10:15:33","modified_gmt":"2024-06-16T14:15:33","slug":"condo-bubble-whats-going-on-in-florida-now","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/condo-bubble-whats-going-on-in-florida-now\/","title":{"rendered":"Condo Bubble? What\u2019s Going On in Florida Now?"},"content":{"rendered":"\n
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Florida is a snowbird\u2019s paradise. It\u2019s no surprise that condos make up a major portion of the market.<\/p>\n\n\n\n

Recently, though, Florida condos are presenting specific challenges. They\u2019re getting hard to finance. Home buyers in Florida can expect to put at least 25% down. For coastal homes, which lenders consider risky, the expected down payment can be significantly higher.<\/p>\n\n\n\n

Needless to say, this is putting off buyers. And it\u2019s putting a damper on the Sunshine State\u2019s housing market. Plenty of Floridians want to sell, while the pool of interested buyers is shrinking. So condo prices have come down from their highs. Miami homes are 3% cheaper (at $385K). And in Jacksonville, prices have dipped 7% (to $254K).<\/p>\n\n\n\n

Anyone thinking about acquiring or transferring a Florida deed needs a clear understanding of its value. So let\u2019s look more closely at the Florida market today. <\/p>\n\n\n\n\n\n\n\n

The Gulf Coast Has Shifted Into a Buyer\u2019s Market.<\/h2>\n\n\n\n

The pandemic sent waves of buyers into Florida. Builders stepped up to bolster supply. Maybe too much so? The boom has run its course. Now, homes are sitting on the market and property values have cooled.<\/p>\n\n\n\n

In the world of condos, Florida\u2019s situation is unusual. Condo values across the country are generally trending up.<\/p>\n\n\n\n

On Florida\u2019s west coast, sellers are trying to compete with new construction. And they\u2019re having to agree to price cuts as buyers gain leverage.<\/p>\n\n\n\n

Of the top ten cities where housing availability has shot up over the past year, six are in Florida: Cape Coral, Sarasota, West Palm Beach, Tampa, Orlando, and Fort Lauderdale.  <\/p>\n\n\n\n

In the Sarasota area, sale prices have actually gone down over the past year. Again, this is unusual. Overall, U.S. real estate prices continue to hover near all-time highs.<\/p>\n\n\n\n

Today, Cape Coral owners need a full month more to arrive at that all-important deed transfer than they needed a year ago. Meanwhile, there\u2019s plenty for buyers to see in and around Sarasota, Fort Myers, and Cape Coral. Listings are abundant along the Gulf Coast \u2014 more so than anywhere else in the country. And any abundance of listings helps buyers negotiate lower prices.<\/p>\n\n\n\n

It\u2019s a Good Time to Be a Florida Condo Buyer\u2014But Diligence Is Due.<\/h2>\n\n\n\n
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In one sense, it\u2019s a good time to buy in at least some areas in Florida. Home prices are going down, to attract buyers who balk at rising association dues and insurance prices.  <\/p>\n\n\n\n

Yes, potential buyers soon learn that Florida real estate insurance prices have skyrocketed. Prices really took off after the 2021 tragedy at the Champlain Towers South that killed 98 people. Federal investigators are connecting the collapse of the Florida condo structure to pool deck support columns that weren\u2019t up to code.<\/p>\n\n\n\n

The state tightened its engineering and financial rules for condos. Suddenly, unit owners faced serious hikes in their monthly association dues. They got hit with staggering bills for special assessments. Obvious questions arose for many owners and prospective buyers:<\/p>\n\n\n\n