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Florida’s condo market is faltering as the increasing intensity of natural disasters pushes up home insurance costs, and HOA fees soar in the wake of the 2021 Surfside condo collapse

Prices of condos in major Florida metros are dropping year over year, and sales are declining, according to a new report from Redfin (, the technology-powered real estate brokerage. New condo listings are soaring as sellers try to offload their properties. That differs from the U.S. as a whole, where condo prices are rising, sales are holding steady and new listings are increasing at a much slower rate.

In the Jacksonville metro, for instance, the median condo price declined roughly 7% year over year in January, sales declined 27%, and new listings increased 32%. The story is similar in Miami, where condo prices fell 3%, sales dropped 9% and new listings rose 27%.

Florida’s market for single-family homes is faring better. Take Miami as an example: The median sale price of single-family homes increased by double digits from a year earlier in January, sales rose 9% and new listings increased 13%.

Florida Redfin agents say climbing costs are making condo ownership unattractive

Redfin agents report that Florida’s condo sales are slow because the cost of buying a condo has shot up, and listings are skyrocketing because the cost of owning a condo has shot up. The average cost of homeowners insurance across Florida increased by about 40% in 2023 alone, according to reports, and homeowners association (HOA) fees are multiplying for many condo buildings. In addition to slowing demand, the rising cost of insurance and fees are pushing prices down.

While condo prices are down from a year ago, they’re still much higher than they were before the pandemic—an affordability challenge that’s being exacerbated by rising insurance and HOA expenses.

“Condo costs are shocking,” said Juan Castro, a Redfin Premier agent in Orlando. “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee. It’s causing buyers to rethink their plans.”

Florida’s HOA fees are increasing because there are new condo regulations in place this year in the wake of the 2021 Surfside condo collapse. The regulations require HOAs to regularly assess the safety of condo buildings, and in many cases collect more money for maintenance and repairs. HOA fees typically include a condo owner’s portion of insurance costs for the exterior of a building, while homeowners have a separate policy covering the interior of their condo.

In some situations, it’s also more difficult to attain a condo mortgage than a single-family home mortgage, even though condos are often considered a more affordable option. That’s because lenders require borrowers to have enough money to cover HOA dues, and also take into consideration the financial health of the condo building before writing a loan.

Home insurance costs are skyrocketing in Florida due to the increasing intensity of hurricanes and other natural disasters, with some insurance companies leaving the state altogether. Homeowners’ insurance costs three times more in Florida than the national average, making it the most expensive state in the U.S. to insure a home.

“Condos are sitting on the market much longer than they used to, with less interest from buyers,” said Jacksonville Redfin Premier agent Heather Kruayai. “Sky-high HOA costs are pushing buyers out of their monthly budget.”

To read the full report, complete with a table that includes more data, please visit:

Posted On Tuesday, 27 February 2024 05:38 Written by

As mortgage professionals, we must deal with many things in our day-to-day business. Some of these things are controllable, some are not. One of the issues that we all have to deal with is market volatility. When the market moves, it can create a great deal of stress for us, our team, our referral partners, and of course, our clients. Interest rates can be a very emotional subject. People hate paying more, but also, fear things they don’t understand. So here are a few things we can look at to help ourselves, as well as our clients and referral partners, be aware of that may cause movement in the rate markets.

•  FED Meetings – ten times a year and they set the market for short term bank rates. They don’t have to raise or lower rates to impact the market, it can just be what they say they intend to do!

•  CPI – Consumer Price Index. Tracks inflation on typical consumer items. Inflation goes higher, rates go higher! Inflation goes lower, rates tend to follow! Once a month tracking the prior month.

•  PPI – Producer Price Index. Same as CPI but tracks costs at the wholesale level. Not as important as CPI because producer prices don’t always increase prices to the consumer.

•  Initial and Continuing Jobless Claims – Every Thursday (except holidays) we see these numbers. Higher claims mean the economy is getting worse, could push rates lower. Lower claims show the economy getting stronger and may push rates higher.

•  World Events – Stuff happens! War, Weather, political changes, or shifts in policy can often impact rates here in the US.

•  Lending Guidelines, Products, and Programs. At any point, the rules by which mortgage lending is regulated can change. From the federal level, down to state and local regulations. Sometimes without much warning, the rules can change, and rates will follow.

This isn’t everything that can move the markets, but just the ones I track on a regular basis and suggest for my clients to stay aware of. You can’t just trust the internet or social media posts to explain to you what is happening and why; it’s important that you know! If you have questions or comments, please let me know: This email address is being protected from spambots. You need JavaScript enabled to view it.

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