Florida housing market most susceptible of a downturn in a recession

| 8/1/2022

Florida housing market most susceptible of a downturn in a recession

Housing markets that surged in popularity during the coronavirus pandemic and saw rapid rises in home prices are most susceptible to a housing downturn if a recession occurs, according to a new report by full service real estate brokerage Redfin. The housing market has already “slowed considerably” this spring as rising mortgage rates forced a lot of potential buyers out of the market. More from Space Coast Daily and the Business Observer.

Florida launches plan to temporarily help keep homeowners insured if ratings get downgraded

Amid fears that a financial-ratings agency will downgrade numerous property-insurance companies, Florida regulators Wednesday announced a stopgap plan to try to make sure homeowners can maintain coverage. The plan involves the state’s Citizens Property Insurance Corp. acting as a financial backstop. Citizens would take on a reinsurance role to help make sure claims get paid if private insurers go insolvent. More from the News Service of Floridaand WESH.

As ‘COVID Refugees’ leave Florida, renters could start to see price relief

The U.S. housing market slowdown in 2022 may be chipping away at some of the trends that took hold during the first two years of the pandemic. That could be good news for renters in Florida, who have seen the cost of apartments skyrocket due to migrating remote workers who wanted to set up shop in more appealing locations. [Source: Philly Voice]

Column: Should real estate agents get more money for selling an expensive home?

At the same commission rate, real estate agents who sell an $800,000 house receive eight times the compensation of those who sell a $100,000 home. But does it take eight times the effort to sell the more expensive property? Does it cost agents more to market a higher-priced home? Is it more difficult to find buyers who can afford such a place? Is the sales process more time-consuming? Is there more paperwork involved? More rules and regulations that must be followed? [Source: Miami Herald]

Blue-collar on the brink: Working-class families are getting priced out of their apartments into homelessness

More working-class people are finding themselves in what housing experts call “situational homelessness” as as wages remain stagnant, rents boom and they are priced out of the rental market. Some are having to live out of their cars, saving up some money for a day or two per week at a motel, or staying in 24-hour parking lots. Many renters in South Florida have reported rental hikes of anywhere between $200-$1,000 a month when they go to renew their leases, and asking rents have increased by more than 20% over the past year. [Source: South Florida Sun-Sentinel]

STAT OF THE WEEK
$300,000
A nondescript five-bedroom home in Central Florida home was originally listed on May 12 for $750,000. Two weeks later, it was reduced to $699,000. On June 15, it went down to $650,000. Exactly one month later, the agent pushed all the chips in and slashed the price to $300,000. [Source: Realtor.com]

ALSO TRENDING:

› ‘This is not Dubai:’ Critics question push for taller towers in Fort Lauderdale [South Florida Sun-Sentinel]
Skyhigh towers as tall as 500 feet could start cropping up all over Fort Lauderdale, critics fear. It could happen if a controversial proposal goes through that would raise the height cap to 500 feet on projects that get special zoning. The new ordinance would apply citywide, not just in high-rise-friendly downtown, where zoning already encourages supersized towers. So far, the idea is getting a chilly reception.

› Florida ‘innovation park’ construction planned next to Space Coast airport [Orlando Business Journal]
A new nearly one million-square-foot industrial space is in the works next to a Brevard County spaceport. Key Group Holdings LLC plans to develop a 50-acre first phase of Space Coast Innovation Park in Titusville. It’s the start of a project that will include the development of 917,099 square feet of industrial space spread across nine buildings next to Space Coast Regional Airport and Space Coast Air & Spaceport.

› Struggling to find affordable housing in Northeast Florida? These resources may help [Florida Times-Union]
Monthly expenses continue to balloon along with inflation for most Jacksonville families, and even with various fixes working their way down the line, such as the proposed property tax rate cut, some families are worried about how they will pay their bills now. Despite initiatives that are aimed to aid future homebuyers or advocacy for rent increase freezes, no solutions seem to be coming quickly enough.

› A massive 747-unit residential complex is planned for Delray Beach. Will it help spur growth outside of downtown? [South Florida Sun-Sentinel]
Delray Beach’s Congress Avenue corridor has long been a sleepy area for new development, but that will soon change with construction close to breaking ground on a massive 43-acre, mixed-use project with 747 residential units. Developers are hoping the project, Parks at Delray, will further spur more growth and turn the area just west of Interstate 95 and south of Linton Boulevard into a thriving new hub.

Tags: Real Estate eNews

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