South Florida home prices keep plunging

Prices of existing homes and condominiums continue to plummet in South Florida as the weak housing market searches for a bottom. Full Story
This is great

United States

#125 Feb 25, 2009
marcus wrote:
CAN SOMEONE PLEASE TELL ME WHY ARE THESE APARTMENT COMPLEXES STILL ASKING FOR 2005 RENT PRICES? WHEN HOMES VALUES HAVE FALLEN 40%. WILL THE RENT ON A 2 BEDROOM IN A NICE AREA WILL EVER BE $700 AGAIN?
When the taxes drop (never).
J-E-T-S

Pompano Beach, FL

#126 Feb 25, 2009
Obama wil come wrote:
Yeah but can't we get some money now because Obama said he was going to help. My mom said that she could hold off until we get the money from him. I hope he can come to our house ior send somebody.
DONT BE SILLY , HE IS TO BUSY CURING CANCER.
florida

AOL

#127 Feb 25, 2009
keep posting the good news Scum Sentinel!!
The Anti-dope

United States

#128 Feb 25, 2009
Real World wrote:
<quoted text>And you will probably never buy
With a six figure income, 800+ credit,$80k sitting in a Scottrade account, all on my income alone, I'll say you're full of it and leave you to your assumptions. Our day is coming soon.
Still Waiting

AOL

#129 Feb 25, 2009
I will buy a house in Boca when I can get a nice 3/2 for about $120,000 which is what they SHOULD be priced at....a lot of us are waiting...its too soon to buy...give it another year and one more hurricane and you will have a REAL deal.
Its Our Own Fault

Miami, FL

#130 Feb 25, 2009
reality slap wrote:
I am sorry for some of the people who lost their shirts. But. home prices were way to high for what jobs pay here.
They always were and they always will be.
Its Our Own Fault

Miami, FL

#131 Feb 25, 2009
Apock wrote:
Until home prices are 3 times the average income for a family in Broward County, they will continue to fall. Period. Something the Obama adminstration seems to ignore is affordability. No one can afford a home that is 4, 5 or 6 times their annual income. This sensibility went out the window years ago because everyone who played into the Ponzi scheme felt that they could jump ship and move for big profits when the adjustable rate became fixed.
Home prices will continue to fall until the average 3/2 home in this county falls to $180,000 based on an average annual income of $60K. Only then will the market hit bottom.
3X is WRONG
Median is NOT the average

Pompano Beach, FL

#132 Feb 25, 2009
To those of you saying a "few million dollar home sales will bring up the average"....yes, they will. But, this article is not talking about the MEAN ( or average) home prices, it is talking about the MEDIAN home prices. A really high priced home or a really , really low priced home ( called an outliar in statistics) affects the mean, but it doesn't really affect the median unless there are MANY of those very high or very low priced home sales. When they say the MEDIAN home price is $190,000 , that means half of the homes sold for less than $190,000 and half sold for more. Just a clarification....
Real World

United States

#133 Feb 25, 2009
The Anti-dope wrote:
<quoted text>
With a six figure income, 800+ credit,$80k sitting in a Scottrade account, all on my income alone, I'll say you're full of it and leave you to your assumptions. Our day is coming soon.
If you are so well off, what are you waiting for? A free house?
JManning

United States

#134 Feb 25, 2009
December 2006...I called the top of the housing market and told all the tards that the party was over. Back then, these boards were half-populated by people calling me a loser and saying I had missed the boat.

I would just like to say to those people...HAHAHA!
JManning

United States

#135 Feb 25, 2009
By the way, just picked up a sweet foreclosure for $300K that sold for $640K in...December 06.
John

AOL

#137 Feb 25, 2009
The people who didn't get mortgages that were beyond our means, and paid those mortgages on time are getting screwed by the deadbeats who never should have had them in the first place. This has helped to bring home values down with all the foreclosure deals that can be had. And what's the great Obama want to do? Reward these people even more by providing government assistance for their mortages on the backs of hard working Americans who will be footing the bill for decades to come.

And if that isn't enough, we're stuck because we can't sell our houses or saw our equity take a plunge. What a country!
John

AOL

#138 Feb 25, 2009
hiSPanICS go home wrote:
<quoted text>
Nice weather? Open your eyes. It's too hot and muggy to go outside for 9 or 10 months a year. The weather just about anywhere in California is much nicer than here.
Calfornia? Guess you don't mind high taxes, much higher than here. California where they have all the mudslides to help put out the fires caused by the earthquakes.
dan maraschino

Fort Lauderdale, FL

#139 Feb 25, 2009
140 dollars per sq foot wrote:
<quoted text>
I understood your original comment, and agree with both.
OK, so Miami (Case Shiller treats WPB to Miami as one market area,S Fla) is down 28% ytd.
I wanted to know how that translated from peak to trough, so I googled "case shiller 2 year charts" and found an interesting article that said from 2000 to peak, S Fla was up 175%, and then from peak to trough (In Oct) down 40%.
Some quick calculations translated that to a $100k home peaking at $175K then dropping back to $105K.
BUT WAIT!! THERE'S MORE!!!
From October 2008 to Dec 2008, prices dropped ANOTHER 5%!!!!
So now we are back to 200 pricing according to Case Shiller.
http://www2.standardandpoors.com/spf/pdf/inde...
A 175% increase on a 100k house equals 275k. Minus 40% makes it 165k.

Anyway, I would ignore the sales from 2003-2007, if not earlier. To say "it sold for 300K in 06 is meaningless." They were the bubble prices and not the trend prices. Anyone who bought Yahoo in 2001 for "half price" got creamed. bubbles burst, and they return to trend (but first overcorrect).

Thanks for the link.
Haywood_Jablome

Fayetteville, NC

#140 Feb 25, 2009
Why are all you Floridians moving to North Carolina?

Since: Jan 07

Hialeah, FL

#146 Feb 26, 2009
The home price stats are almost always reported as MEDIAN, not average. The median is the number in the middle, and is used in home prices specifically to keep very expensive or inexpensive homes from skewing the number up or down. So, the median says that 1/2 of all homes sold for HIGHER, and 1/2 for lower. It does not take into account how MUCH higher or lower, therefore this number does not skew with the inclusion of high end homes.
Stats wrote:
Keep in mind that this represents the average price of homes SOLD. While I understand that home prices are falling, I believe this stat is a little misleading. To me, this average home price tells me that none of the higher end homes are being sold. A couple million dollar homes moving off the market would push up the average.

Since: Jan 07

Hialeah, FL

#147 Feb 26, 2009
LOL. You people who think it takes a "crystal ball" to predict home prices really crack me up. Read "Irrational Exuberance" by Robert Shiller, that will explain the housing market, and housing market pricing to you, giving you a "crystal ball" as well. Home prices are about as predictable as sunrise/sunset, with the exception of the RE bubble, when adjusted for inflation, home prices are pretty much flat throughout all of recorded history (with the exception of after one of the world wars). Home prices mirror inflation; once you realize that, you "suddenly" can predict home prices out into the future!

Now, what I can't tell you is the exact time/day to buy. But what I can tell you is when we have again reached the historic price levels on homes in this area. And we're still not there, we have another 10-20% in most areas to go. And then we may overcorrect (because we built WAY too many houses!), but at least you won't get killed if you wait for historic price/income and price/rent (as well as Case-Shiller) numbers to fall back in line.
yea right wrote:
<quoted text>
WHere did your BRo get his crystal ball from I need me one of them.
anyone who thinks they can prodict the future is just fooling THEMSELVES

Since: Jan 07

Hialeah, FL

#148 Feb 26, 2009
Absolutely, 3X income is the MAX for a home in S. FL, and, on 60K (median income) a 180K house is really pushing it! Remember, taxes and insurance are incredibly high in FL (compared to the rest of the country), as well as HOA fees and other fixed costs. IMHO, anything over 2.5X income is asking for trouble in this area, our cost of living is just too high to support 3X home prices (at least at the median income levels). 100/sq/ft is the other gauge that I use, don't even consider buying a home for over 100/sq/ft unless you are look at something very unique (which is, IMHO, ONLY waterfront, deep water, or ocean front.. And no, man made ponds are not waterfront).
Apock wrote:
Until home prices are 3 times the average income for a family in Broward County, they will continue to fall. Period. Something the Obama adminstration seems to ignore is affordability. No one can afford a home that is 4, 5 or 6 times their annual income. This sensibility went out the window years ago because everyone who played into the Ponzi scheme felt that they could jump ship and move for big profits when the adjustable rate became fixed.
Home prices will continue to fall until the average 3/2 home in this county falls to $180,000 based on an average annual income of $60K. Only then will the market hit bottom.
RE Agent

United States

#149 Feb 26, 2009
It's a new paradigm, and everybody who doesn't buy, now, will be priced out forever. Anybody who does buy will be rewarded with a lifetime of riches, as their property will continue its 30% yearly price increase.

Renters, and anybody born in a future generation, will not be able to afford a $10,000,000 starter home in 15 years. They will live in tent cities, and Hondas.

This asset bubble is different than all of the others - it will never slow down, or pop. The gains are permanent.

Since: Jan 07

Hialeah, FL

#150 Feb 26, 2009
He (like me) is waiting for fair value to be reached. The way he got his high credit score and high income is through making wise choices in life. Buying into a crashing market isn't typically considered a "wise" choice!:)

Rent X 100, 100/sq/ft; those are the numbers we will hit when we're fairly valued. Once we hit those numbers, the smart money will start to move again. But, there is a VERY good chance that we will fall far below those guidelines, we have a massive oversupply of homes down here, there will be communities where homes will fall to nearly 0, they simply have no value to anyone (other then scrap value of the house).

I was out in Wellington last week looking at some homes prices ~50/sq/ft. It's still too much, there's simply too many homes in Wellington, and the homes there are FAR too large. They need to fall further, and likely bulldoze some communities to reduce the supply.
Real World wrote:
<quoted text>If you are so well off, what are you waiting for? A free house?

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