I remember when I first moved to Florida full time. It was in 2003, before the BOOM in real estate. I owned a home in upstate New York which was worth about $40,000 at the time but the taxes were outrageous! Couple that with winters where it was common for 6 feet to 10 feet of snow to accumulate – and it was an easy decision to make the move to Florida! Sure, the median priced home was around $200,000 – but taxes were WAY lower (no state income tax, lower sales tax and lower real estate taxes!) and from a cash flow perspective – the numbers worked!
Today, I checked out an article post from CNN on the current Florida housing market. This video in particular, caught my eye:
For my New York friends who are thinking – yeah, but it is SO hot there in the summer – I’ll remind you that our summer in 2010 was similar in temperatures to yours this year! And, minus the snow plowing, sidewalk shoveling, and car window scraping in the winters….it might be time to at LEAST look into a second home?!
In any event – we may not have reached the absolute BOTTOM in the market yet – but we are darn near close I would think – judging that some areas I have appraised are valuing 75% less than when the properties were purchased in 2007! WOW – values at 1/3 of what they used to be 3 years ago! Do you think it will go lower? Will homes eventually just be transferred for FREE?
Current inventory may be keeping the pricing low for a bit, with the ‘shadow inventory’ looming out there, and sidelined buyers not purchasing as many homes right now. But give it time… and like a clogged up drain – you just may see another “boom” of buying. It will just be the prices are at 50-70% of that boom from 2005!!
Make it a great day!