Florida is For Sale - Escalates to worrying new high

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Florida is For Sale - Escalates to worrying new high

Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
Florida housing crisis escalates to worrying new high as record number of homes for sale

The housing crisis in Florida has reached a dramatic new milestone, with more homes on the market than ever before.

The number of unsold homes in the Sunshine State rose almost 23 percent year-over-year in January, according to new data from Redfin.

There were 172,209 homes for sale in Florida at the end of January, the highest inventory of any month on record.

Active listings are at a record high in eight of Florida's metros, such as Cape Coral, North Port-Sarasota and Deltona-Daytona Beach.

Most of the eight metros are on the coast where there is a high concentration of condos.

Florida is battling a housing crisis brought on by surging insurance costs and HOA fees following a rise in natural disasters and the Surfside building collapse in 2021.

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Maybe some of those laid off government employees in D.C. can find cheap housing.

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y

I believe there are a lot of markets that will see a "balancing" over the next couple of years. People moved out of impulse and overpaid. Natural disasters, economic changes, and other realities will eventually change the landscape. Some will win, some will lose.

Florida made sense in 2018 when you could buy a nice house for $350,000. Paying $1.2 million for the same house five years later is crazy.

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y

    I believe there are a lot of markets that will see a "balancing" over the next couple of years. People moved out of impulse and overpaid. Natural disasters, economic changes, and other realities will eventually change the landscape. Some will win, some will lose.

    Florida made sense in 2018 when you could buy a nice house for $350,000. Paying $1.2 million for the same house five years later is crazy.

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    • Chris SeveneyBusiness Member
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      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y
      Quote from @Nathan Gesner:

      I believe there are a lot of markets that will see a "balancing" over the next couple of years. People moved out of impulse and overpaid. Natural disasters, economic changes, and other realities will eventually change the landscape. Some will win, some will lose.

      Florida made sense in 2018 when you could buy a nice house for $350,000. Paying $1.2 million for the same house five years later is crazy.


       Agree - we are looking at a defaulted loan, sold for $400k in 2019 and then in 2022 for $950k and nothing was done to it. Listed for $799k right now and not moving. 

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    • Ken M.
      OP
      Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
      1y
      Quote from @Chris Seveney:
      Quote from @Nathan Gesner:

      I believe there are a lot of markets that will see a "balancing" over the next couple of years. People moved out of impulse and overpaid. Natural disasters, economic changes, and other realities will eventually change the landscape. Some will win, some will lose.

      Florida made sense in 2018 when you could buy a nice house for $350,000. Paying $1.2 million for the same house five years later is crazy.


       Agree - we are looking at a defaulted loan, sold for $400k in 2019 and then in 2022 for $950k and nothing was done to it. Listed for $799k right now and not moving. 

      And, Insurance Rates continue to climb. When insurance becomes unaffordable and people start losing their insurance, lenders will want to tighten up on lending. I'm not aware of any major lender that will lend against a property that doesn't have insurance.
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    I'm also guessing some foreigners who used to spend the winter there are selling their homes now.  If there are lots of homes on the market, then that's good for people looking to buy.

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  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    It “sounds” like there are 12,000 more home for sale than in 2019 when there were 160k homes for sale. Back then they had 21 million people, now they have 23 million. Is 12k homes for 2 million people a massive issue? Seems like inventory is up 7.5% and population is up 10%? Or were the “experts” predicting a crash in 2019 as well? 

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    • Chris SeveneyBusiness Member
      Moderator
      Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
      1y
      Quote from @Bill B.:

      It “sounds” like there are 12,000 more home for sale than in 2019 when there were 160k homes for sale. Back then they had 21 million people, now they have 23 million. Is 12k homes for 2 million people a massive issue? Seems like inventory is up 7.5% and population is up 10%? Or were the “experts” predicting a crash in 2019 as well? 


      I do not see a crash but I believe if I recall florida typically tends to have higher curves in both direction on pricing. What we are seeing a lot of is defaulted investor loans in florida as those DSCR loans no longer make sense and went from a 1.1 down to a .7 pretty quickly with insurance and taxes and borrowers cannot afford them as they bought with no nest egg to pay for the shortage.

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  • Chad Shultz
    Real Estate Agent · East Central Florida · Member since 2021 · 121 posts · 94 votes
    1y

    Investors should not fall victim to the broad statement that there is a "housing crisis" anywhere. It is a scare tactic.  Any seasoned investor knows you make your money on the PURCHASE, not on the SALE.  If you do your homework, follow your common sense formulas and use real rehab costs/expenses, there really is no such thing as a housing crisis.  Add to that the USA is still 4+million housing units short, homes still sell.  Yes, they make take longer, but if you buy them right and price them right, you will always sell first.  I just finished a project in the area that sold in less than a month just about at asking.  It was on the market less than a full month and it was a Condo, no less, which are more taboo than anything else out there.  Historically, the "...best time to purchase a home is always five years ago."

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  • Terry Ouimet
    Investor · CO · Member since 2020 · 59 posts · 42 votes
    1y

    Yawn …the market went from bizzerk to normalizing , no need to hit the fire alarm quite yet , my STR in FL is doing fine, yes I'd like more cash flow and expenses are high but I'm a buy and hold, FL will always be a top vacation destination. Lose the "crash" word

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