Monroe County pricing is now sustainable. Housing prices are moderate, insurance rates are lower and tax rates are lower. It's a GREAT TIME TO BUY IN THE FLORIDA KEYS!
The Florida Keys have been a haven for snowbirds, smugglers, pirates, presidents, movies stars and writers. The Southernmost City of the United States has seen some low spots when the rest of the country was experiencing financial trouble, but our troubles usually started later and ended sooner and weren't nearly as deep. If history is a guide to the future, we are almost through the storm. If it weren't for hurricane Wilma this financial tsunami might have been just a thunder storm.
Skyrocketing insurance premiums and taxes were the first forces to hit us. It took some time but FIRM (Fair Insurance Rates for Monroe County http://www.fairinsuranceratesinmonroe.com/) fought the insurance battle for Monroe County and our rates were reduced. The reduction did not come in time for hundreds of people. I attended the Evidentiary Hearings and even testified. I was teary eyed as I listened to homeowners tell their story of loosing their home because their insurance rates had gone up hundreds of dollars a month and thousands of dollars a year. This was the first shakeout and the first time we saw housing prices decrease slightly.
After the horrendous insurance rate hikes the insurance company refused to pay many claims. I was one of the homeowners who had to take a 2nd mortgage when my insurance company refused to pay for the damages. Hundreds of homeowners were not able to get a 2nd mortgage. My friends lost their homes because some lenders like Countrywide refused to give the homeowners the insurance settlement checks so the homes could not be repaired. The homes were uninhabitable, but the mortgage payments were still due. Then came the next wave of price reductions. You could see people hanging by their finger tips and then by one hand and then a few fingers and then they let go.
The Key West Citizen reported that:
- In Monroe County during January 2009, "186 new foreclosure cases were filed representing a 50 percent increase over January 2008."
- "Judges heard more than 1,600 foreclosures cases in 2008 which was almost double the 932 cases in 2007."
- "Monroe County judges heard more than 1,600 foreclosure cases last year, which was almost double the 932 cases in 2007."
The tax problem was more sinister. Nothing could be done about it. Years into the crisis our taxes have decreased just slightly. Although our millage rate is lower than most parts of the US the tax assessment increases were a shock to us here and many could not afford the bigger mortgage payment from the bigger escrow payment for taxes.
Homeowners had not planned for insurance premiums to add $500 per month and taxes to add another $500 per month to their mortgage payment in a calendar year. This is what actually started the avalanche in the Keys. If we had not had these to factors hitting us we might have tip toed past the housing crisis, but once the prices started to slip it couldn't be stopped.
Although the insurance rate hike moratorium is going to expire this year there is still good news.
•1.) FIRM has been mobilized for a few years now and there are supporters willing to donate money to this worthy cause. Some of the founding members are now city commissioners and are now experienced in government so they are better prepared to fight for us.
•2.) Construction costs have decreased so replacement values are lower so that will help to decrease insurance rates.
•3.) After Wilma many homeowners got new roofs, hurricane shutters and many other safety features that will protect their homes should there ever be another hurricane and these hurricane mitigation efforts lower insurance rates.
•4.) Foreclosures and short sales are finally having an effect on tax assessments.
Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com.com
www.ShowcasePortfolioProperties.com
www.myspace.com/topkeysrealtor
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