I've spent the last 5 weeks looking at homes along the Florida Coast from Tampa to Pensacola. I have walked-through probably 300+ homes in that time, and talked to probably 200 different real estate brokers. I've spent time looking at the rental market in each of the larger areas along the coast. I've spent almost every waking hour on the phone talking to owners that I've found through the classified ads. Anyone who claims that the explosion of the real estate bubble is not going to destroy the US Economy is either totally ignorant or simply in complete denial.
Values of single home properties have increased drastically in coastal areas of Florida in the last 24 months where there is ZERO intrinsic value, simply because more people could afford to buy homes. But supply along the Florida Coastline FAR OUTWEIGHS demand now. There are significantly fewer buyers in the market now then there were 6 months ago, and there are hundreds of thousands of new homes to be had in every single county. I can only report to you what I've lived through these past 5 weeks. I was under the illusion that it would be difficult to find a home, that homes were selling like wildfire and that I ought to jump on the first thing I saw..... but I've personally seen the exact opposite here. Real estate brokers are desperately begging me to take their homes of their hands. What's more, there are thousands of rental homes all along the coast, within walking distance to the beach, that are significantly cheaper to rent than to own. That's how much supply is in the market right now.
thanks for the posts on FL's market. it may be regional, i know where i live in long island, ny houses are selling slower but there isn't a feeling of prices lessening.
Maybe some statistics will give a more rational view. http://housing-bubble.com/news/florida-homes-for-sale-140503.html
Thanks for the Florida update. I've been thinking of buying a place there as well but am wondering the same as you just pointed out. Are you looking for investment or personal property?
I am looking for a house in the 250K range along the coast of Florida between Tampa and Pensacola. Most everyone I've been talking with has one or many real estate ventures on the side (as a part time hobby), that they bought only a couple years ago and are looking to flip for 50-100%. Some of these properties are within walking distance to a nice beach, so I believe there is, at least, some intrinsic value to the place, but none of this matters any longer. There are literally hundreds of thousands of homes along the coast that are for sale, and they aren't enough buyers to keep all these real estate brokers/firms in business. I honestly don't see how these investment properties are making anyone money, because most of the properties I've considered renting (on the beach or near) cost several hundred dollars more to own than they're asking in rent. I think, fundamentally, that says a lot about the market. But, I'm not an expert, I'm just a guy looking for a house for myself and I'm just reporting that there is no shortage in houses for sale and a lack of buyers in the market right now.
Did you by any chance see any properties in Sarasota? If so, what kind of relative value is there compared to the rest of the state?
The negative cash flows have been a fact in many fast-appreciating areas for several years. (Can you perhaps cite an example or 2 in terms of what a $250K house would rent for?)