South Florida home prices keep plunging

South Florida home prices keep plunging

There are 178 comments on the South Florida Sun-Sentinel story from Feb 25, 2009, titled South Florida home prices keep plunging. In it, South Florida Sun-Sentinel reports that:

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

Join the discussion below, or Read more at South Florida Sun-Sentinel.

NotThereYet

Alpharetta, GA

#151 Feb 26, 2009
Its Our Own Fault wrote:
If the median is down to 2002 levels then we've technically reached the bottom. HOWEVER, now comes the over-correction.
I don't think SFL has reached bottom...it still has another year to go...around 2010...that will be the time to buy...I would sit tight and just wait...

As far as a overcorrection..no such thing...people waited years to have a correction from the DOT com era..it will return to the normal 2-3% increases a year..
NotThereYet

Alpharetta, GA

#152 Feb 26, 2009
Mike Fink wrote:
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.
<quoted text>
I agree with you Mike that based on supply vs demand SFL has a long long way to go...and that the days of the McMansions to show off have come to a end...people are now "stuck" in their homes and will have to actually plan on living in them for years to come(like many of our family members did before).

Those communities will never be torn down, which may be a good thing as monuments to our greed and mistakes will make good reminders to the future generations.
mr p

Miami, FL

#153 Feb 26, 2009
Its Our Own Fault wrote:
<quoted text>
3X income is not logical in South Florida. Nice weather plus low wages = nobody who actually works here can afford to own a home here. You're forgetting the "sun" penalty.
With high property tax rates and sky high insurance costs (built into the sky high condo fees), you're looking at carrying costs that will be more than the mortgage payment. That's assuming you can even get someone to loan you the money for property down here. I wouldn't do 3X income on property here--the carrying costs in addition to the mtg. payments on the 3X income stretch will sink you. I'd shoot for 2X income max. And I'm debt-free with no dependants. Subtract from that 2X if you're not.

Since: Jun 08

Miami, FL

#154 Feb 26, 2009
Real World wrote:
<quoted text>If you are so well off, what are you waiting for? A free house?
Not that I need to explain sh!t to you, but I am hardly "well off." Second, unlike most of the dopes in today's world, I actually do the due diligence on any purchase I make, like this I don't make a stupid mistake and buy a house in 2005, when I first could afford it.

One of the reasons I have some money is because I don't buy a house "just because I can" only to watch $100k in hard-earned equity evaporate. No. I'll rent nice places on the cheap and when the prices are right, we'll buy in.

And that day is coming very soon.

Since: Jun 08

Miami, FL

#155 Feb 26, 2009
dan maraschino wrote:
<quoted text>
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.
Where'd you learn to do math?$100k * 175% is not $275k.
I AM A1ACharles Dammit

West Palm Beach, FL

#156 Feb 26, 2009
Amendment 1 was no help at all.

Voters can be bought and paid for all day.
bigboy

Spartanburg, SC

#158 Feb 26, 2009
re foreclosure. agent, keep em coming

Since: Jan 07

Hialeah, FL

#159 Feb 26, 2009
LOL. Amend 1 was for the mental deficients, plain and simple. There were VERY few people who would have been helped by that plan; and the number falls more and more every day as SOH values and actual values converge again. Had we passed something like the 1.3% max mill rate that had been proposed, many of us would see our taxes at 1/2 their peak levels. But, once again, we had to try to "f**k thy neighbor" and stick others with our tax obligations through SOH. This time we are getting what we deserve, higher tax rates and no help from portability. Perhaps, after this collapse ends, we can have a real discussion again about CAPPING THE REVENUE of the taxing bodies, to prevent the 100-300% tax increases that we say from 2000-2006.

I'm not hopeful that this system will ever be fixed. The people of FL just don't understand how it works, SOH has pushed up taxes MORE and FASTER then ANY other law passed in FL property tax history. And yet we (the people of FL) continue to defend and protect it, because most of us don't understand what it really does.
I AM A1ACharles Dammit wrote:
Amendment 1 was no help at all.
Voters can be bought and paid for all day.
Cyndi NC

United States

#160 Feb 26, 2009
Ann wrote:
I sold for three times what I bought for and move out of state an bought cash and works part time.
Me too bought in 94 for 75000 sold in 2007 for 280,000 moved to NC and bought a beautiful home on an acre for 115,000 and the cost of living here is so low all my bills are 1/3 what they were in Florida. Prop taxes very low, no flood ins needed. I am almost semi retired at 54 - I miss my friends and sometimes want to move to FL again, but it is beautiful here.
Cyndi NC

United States

#161 Feb 26, 2009
Bought my house in FL in 94 for 75,000 sold in 2007 for 280,000 moved to NC and bought a beautiful home on an acre for 115,000 and the cost of living here is so low all my bills are 1/3 what they were in Florida. Prop taxes very low, no flood ins needed. I am almost semi retired at 54 - I miss my friends and sometimes want to move to FL again, but it is beautiful here. Is it worth coming back to FL?
ENOUGH

West Palm Beach, FL

#163 Feb 26, 2009
just me wrote:
<quoted text>
That is just the bank paying $100 to take the property into their name that they hold the mortgage to. Doesn't mean that YOU can buy the house for $100.
No shiite, I was just pointing out what was being constituted as sales in the "figures".
I AM A1ACharles Dammit

West Palm Beach, FL

#164 Feb 26, 2009
Mike Fink wrote:
LOL. Amend 1 was for the mental deficients, plain and simple. There were VERY few people who would have been helped by that plan; and the number falls more and more every day as SOH values and actual values converge again. Had we passed something like the 1.3% max mill rate that had been proposed, many of us would see our taxes at 1/2 their peak levels. But, once again, we had to try to " ******k thy neighbor" and stick others with our tax obligations through SOH. This time we are getting what we deserve, higher tax rates and no help from portability. Perhaps, after this collapse ends, we can have a real discussion again about CAPPING THE REVENUE of the taxing bodies, to prevent the 100-300% tax increases that we say from 2000-2006.
I'm not hopeful that this system will ever be fixed. The people of FL just don't understand how it works, SOH has pushed up taxes MORE and FASTER then ANY other law passed in FL property tax history. And yet we (the people of FL) continue to defend and protect it, because most of us don't understand what it really does.
<quoted text>
SOH worked just fine. What you describe is a symptom of an overheated RE market.
ENOUGH

West Palm Beach, FL

#165 Feb 26, 2009
Go Gators wrote:
<quoted text>
Learn how foreclosures work, pal. They're not buying homes for $100, they're simply getting the homes back that they had a mortgage on.
They were using those "sales" for $100 as a "home sale" in the "figures".

Again, that was my point. I should have made myself more clear on that.
140 dollars per sq foot

Streetsboro, OH

#166 Feb 26, 2009
dan maraschino wrote:
<quoted text>
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.
LOL, I had to ask my teenage stepson how to multiply and divide percentages. How embarrassing.
Thanks for the clarification, seems too obvious now.
Here's a great blog.

http://southfloridabubbletrouble.blogspot.com...
Millionaire Freebie

Kissimmee, FL

#167 Feb 26, 2009
The Anti-dope wrote:
<quoted text>
Where'd you learn to do math?$100k * 175% is not $275k.
That is where you made your mistake. When something increases 10%, you multiply it by 110%, by adding 100 to the "increase" number.

So, if it increased 175%, that means 100K *(100+175)%. Your match was right, you just forgot the initial 100% of the original property value.

I hope this helps.
Millionaire Freebie

Kissimmee, FL

#168 Feb 26, 2009
ENOUGH wrote:
<quoted text>
No shiite, I was just pointing out what was being constituted as sales in the "figures".
Correct. The median (sale price in the middle of the full set of sales) is lowered by the multiple $100 sales. ENOUGH is right.
mr p

Miami, FL

#169 Feb 26, 2009
Cyndi NC wrote:
Bought my house in FL in 94 for 75,000 sold in 2007 for 280,000 moved to NC and bought a beautiful home on an acre for 115,000 and the cost of living here is so low all my bills are 1/3 what they were in Florida. Prop taxes very low, no flood ins needed. I am almost semi retired at 54 - I miss my friends and sometimes want to move to FL again, but it is beautiful here. Is it worth coming back to FL?
If you had simply waited 24-36 months and rented here after selling, you could've bought here for cash. Patience pays.
Sure

United States

#170 Feb 26, 2009
rest of us wrote:
<quoted text>
My post was sarcastic. I bought during the downslide and now am $60,000 upside down. Will it go back up? Someday. It is depressing in the meantime. Mock me if you want but plenty of people bought primary residences. We made a mistake but highsight is 20-20. Thanks, speculators and walkers , for this mess.
It didn't take highsight. All it took was a simple rent versus buy analysis using the data at the time. There were dozen of them available free-of-charge on the Internet. My favorite is the New York Times one:

http://www.nytimes.com/2007/04/10/business/20... #

Had you used a tool like that at the time, you would have VERY QUICKLY realized that buying was an absolutely terrible financial decision -- and tht was using the available financial data AT THE TIME.

Listen, you can try to convince yourself that you needed highsight, but that doesn't help you avoid similar financial decisions in the future.

And just so you know, I am not mocking you -- believe it or not, I empathize with your plight. Just like the millions of other morons, I moved my financial portfolio from decent stocks into Dot.com s during the late 1990s. Even though I had the financial data available to me the time ( Pets.com , WebVan, and WebMD had never made a profit), I got caught up with the mania and drank the ridiculous technology stock Koolaid. When my financial world fell apart in 2000, I didn’t blame my mistakes on the lack of a crystal ball. I blamed my mistakes completely on my own stupidity. I had the financial data at my finger tips, but chose to ignore. I am completely accountable for investment and got what I deserved.

Unfortunately, you did the exact same thing as me. You got caught up in a mania and believed all the silly propaganda. You also completely ignored the mountain of financial data that show, AT THE TIME, that you were making a terrible decision.

You can continue to use the “hindsight” cop-out if you’d like, but that sort of thinking will not keep you out of the next irrational mania.

Since: Jan 07

Hialeah, FL

#172 Feb 26, 2009
LOL. How can you defend SOH in the face of the evidence from 2000-2006? SOH caused taxes to go up during that time at a rate never before seen in FL history. It did nothing to control the tax burden, it actually helped it increase at an absolutely breakneck pace.

If you believe (as I do) that SOH was a wonderful way to raise taxes on FL homeowners, then, yes, I suppose you can argue it worked as intended. However, most people believe that SOH is a tax control, or a cap, to prevent taxes from going up as much as they would without it. In that respect, it's an absolute failure, taxes have never gone up as fast as they did since the passage of SOH.
I AM A1ACharles Dammit wrote:
<quoted text>
SOH worked just fine. What you describe is a symptom of an overheated RE market.
I AM A1ACharles Dammit

West Palm Beach, FL

#173 Feb 26, 2009
Mike Fink wrote:
LOL. How can you defend SOH in the face of the evidence from 2000-2006? SOH caused taxes to go up during that time at a rate never before seen in FL history. It did nothing to control the tax burden, it actually helped it increase at an absolutely breakneck pace.
If you believe (as I do) that SOH was a wonderful way to raise taxes on FL homeowners, then, yes, I suppose you can argue it worked as intended. However, most people believe that SOH is a tax control, or a cap, to prevent taxes from going up as much as they would without it. In that respect, it's an absolute failure, taxes have never gone up as fast as they did since the passage of SOH.
<quoted text>
I agree. The rapidly rising cost of taxes, a home, and insurance are a symptoms of an overheated RE market.

SOH did not raise your taxes, the cost of buying your home in an overheated market did.

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