Count the 'For Sale' signs. When is the condo market going to turn around?
Well we've all heard about the horrible housing market. With the passing of the new Real Estate Tax Amendment only time will tell if it's enough to give Florida the jolt it needs to recover. The condo market has been hit hard and it still amazes me that there are small projects still breaking ground. I took a walk in the Wilton Manors neighborhood recently and stumbled upon this sight. See how many 'For Sale' signs you can count on this street.
It's a sad sight for sure. These are brand new buildings that are finally ready for occupancy...but there are no buyers. This area was once white hot as well. You had to jump on a place if you liked it...or might even face a bidding war. There is still sales going on in the area, but it's nowhere near what it was 2 years ago.
I currently reside in a condo...an older complex (built in the early 1970's). I'd love to be able to sell it and buy one of these shiny new condo/townhouses. I bought my place about 7 years ago...so my assessed value is fairly low due to the Save Our Home 3% cap. With the portability now available for this cap...it just might allow people to move and bring their tax savings with them. I personally think it will take until 2009 for us to see a big improvement.
It's a sad sight for sure. These are brand new buildings that are finally ready for occupancy...but there are no buyers. This area was once white hot as well. You had to jump on a place if you liked it...or might even face a bidding war. There is still sales going on in the area, but it's nowhere near what it was 2 years ago.
I currently reside in a condo...an older complex (built in the early 1970's). I'd love to be able to sell it and buy one of these shiny new condo/townhouses. I bought my place about 7 years ago...so my assessed value is fairly low due to the Save Our Home 3% cap. With the portability now available for this cap...it just might allow people to move and bring their tax savings with them. I personally think it will take until 2009 for us to see a big improvement.
The condo market is a very strange thing. Now the luxury market may react a little differently however...My parents bought a condo in Coral Springs in 1981 at the very top of tha market. They would rent it out seasonally and also we would use it in the summer and various holidays etc. When they sold it 20 years later it had finally gotten back to the price they paid 20 years earlier. Even though there is buildout in many areas condos sometimes move little for many years. I think the high priced stuff will really suffer and well beyond 2009. There are just to many of these high roller places. As you know taxes are a fortune as well. Housing may flatten out well before condos. Lets face it Florida is not as reasonable as it used to be. Same thing for Vegas. If we get any decent storms in the next year or so they could also hurt the market badly. Especially condos near the water...
Reply to this