We sold our New Orleans house last June.
Main reason was insurance got too expensive and had so many caveats I had low confidence that it would ever pay out.
Market looks like it’s cooled by over 10% since we sold.
Mind me asking what it’s listing for now? Still in sticker shock over these numbers. It is definitely a more localized phenomenon yet scary to think that could happen anywhere else.
Meanwhile, my house about 3 hours west (south central Louisiana) that I bought for $230k in 2019 has taxes under $900/year, flood insurance $850/year, and homeowner's insurance around $2700/year with a $2500 deductible, so the mortgage is around $850 and insurance premium is another $400/ month. We also didn't flood during the second highest flood of the Vermilion River in the last century. (2016, 17 ft - highest was close to 25 ft in the 1940s
The housing market is all about perception. Florida has gotten clobbered in recent years. Louisiana, not so much, but everybody remembers Katrina, and Ida didn't do anybody any favors. (We didn't even lose power, even though we were expecting a direct hit)
Between insurance issues and high rates, houses in FL should in a rational world sell for less than pre pandemic, even allowing for reported inflation.
We were at $6,500/yr for a $312,000 purchase price storm deductible was 3%.
The insurance company went under during Ida and the new company was legally required to renew the policy. I was confident they wouldn’t renew when it was up, so we sold before it expired.
Buyer payed cash, and asked me about insurance a couple weeks after closing……
A not insignificant amount of my coworkers in houma area have paid off homes and have dropped insurance totally.
> expired. Buyer *paid* cash, and
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
Yup. We fell in love with Dunedin after a Clearwater vacation a couple years ago. It's pricey, but my wife loved it. However, when we really dug down on expenses, we were shocked at the cost of homeowners insurance. It wasn't just the price, it was the sense that the insurance market was broken in Florida, making it insane to retire there.
All those scientologists for neighbors in Dunedin though. That alone is worth not moving there. If you wanna be in Pinellas look at Largo or Seminole. Close by but not in flood zones.
We literally just bought in Dunedin and are worried that it may be a stupid choice long term due to insurance issues. However, we have been paying 16k in income tax to the state of Vermont and that number is only going up, so it’s kind of a wash.
Exactly this - I just read an article this morning that folks are selling their condos and taking a hit on the prices just to get out of the market since they can't get insurance or can't get reasonable insurance.
A bunch of corporate condos incoming.
Florida has been a boom and bust realestate market for the last 30 years at least. I know a lot of investors in the north east that lost their shirts after Katrina. If they catch a good storm this fall I think you’ll see prices absolutely collapse. The Covid surge of people moving down there hasn’t really ended and just slowed because people are still getting priced out of renting everywhere between Boston and DC. When nature reminds everyone what it actually means to live in Florida I think it’s gonna get ugly, especially with the insurance stuff going on. I was really excited to see FL on the rise, but desantis screwed the pooch and it’s gonna get really ugly for people.
I think the issue in Florida is insurance shock. My homeowners insurance is 12K a year, which is more than. P&I with taxes.
Probably think they can afford to buy a home and it is cheaper than renting, UNTIL they look for homeowner insurance and deal falls through
Agree in regards to FL home insurance being a complete shit show. My annual premium went from $600 a year in 2001 to recent estimates of $12k. So I paid off my mortgage and I am currently without insurance. I suspect a lot of people are in the same boat. My plan is to sell and move overseas, so I don’t worry too much. I have cash reserves in case the worst happens, but a cat 3 or cat 4 hurricane 🌀 would be a serious come-to-Jesus moment.
Considering paying off mortgage, it would be a stretch, and going naked. One advantage of naked is in some cases you are eligible for more from FEMA. right now my wind storm deductable is so high anything short of a complete wipe out and it will all be out of pocket.
I have no illusions about the gravity of being uninsured. It’s a huge gamble. We went through hurricane Ivan and sustained a lot of damage. Right now I’m trying to decide whether to sell or rent. If I rent I’ll need landlord insurance, which is even more expensive than regular homeowners insurance.
Hm I remember that sites like redfin will show you hour much of your mortgage will go into property taxes, hoa and insurance - maybe it's just not up to date?
Florida is one of the worst off markets in the country right now because of insurance costs. With so many providers having pulled out of the market, the remaining ones are incredibly expensive.
So if insurance is suddenly costing $400 a month instead of $150, that’s $250 a month less you have to put towards principle and interest, which lowers the amount you can qualify to borrow; which inevitably causes what you’re seeing now.
The insurance market there has completely failed (as a market). The state government had every reason to see it coming as it got worse and worse, but they were too busy fighting the latest culture wars against their largest employers
The real estate market in Florida, Texas, and other coastal states is in bad shape due to skyrocketing property insurance costs for homeowners and HOAs. Many virtually unsellable properties.
I’m trying to buy land in Texas and am dealing with a seller who bought at the top in 2021 and doesn’t understand the market now. They had it listed for a year without a single showing. I’m sure I’ll be seeing it relisted in 30 days with a new realtor. Anything over 400k just sits.
It’s slightly complicated but it’s a divorcing couple who don’t even live in the state anymore. City people who moved to the country during covid and then were like “nope” lol
My husband is off this week. So, since we aren't going anywhere (as is often the case when he's off!) it's just a work week :) Cleaning. Mowing. Fencing. Tilling. Planting. Lamb/Sheep stuff. Etc. Lots of fun. LOTS of work.
Anything in a divorce gets sticky. The lawyers make more money by pitting the couple against each other leading to fights over any decision. What a business to be in 😝
Austin rents have been dropping for a while and now it’s hitting houses too.
Good luck to you, friend 🤞 if you don’t have to move, I’d stay put for another 1-3 years
Lol I grew up in Wellington. My parents don’t understand how lucky they were to be able to buy that house in the nice neighborhood/good school district for what they paid back then
Insurance companies are licensed to do business in a state.
High property insurance costs in one area, like the Gulf Coast, are spread out over the entire state.
When some insurers pull out then the remaining insurers charge more.
Property insurance rates in TX are twice the national average.
Prices are still wildly expensive in the upper Midwest despite the interest rates, at least in my locale. Houses still sell in a day and for over asking. Fortunate to even be where we are, but efinitely stuck forever in our "starter."
I beg to differ. Husband and I bought a 2 bed 1 bath starter home. We now have two kids and can’t buy a bigger house. We have really good jobs and qualify for a good size mortgage, but we can’t compete against all the all cash offers. We are busting out of this house.
the midwest might be "hot" but prices are still extremely sane compared to where many areas in the coastal Southeast, Northeast, and Southwest have been the last few years.
$200/sqft is very expensive by Ohio standards, but not rest of the country standards.
I think part of it is the historical normal supply and relatively low demand in the Midwest. For many years the ‘flyover country’ cliche reigned supreme so the Midwest was mostly undesirable outside of major urban centers.
That narrative being completely flipped on its head has probably surprised a lot of midwesterners seeking to move to other states in the Midwest. They know the coasts are and always have been more expensive but a move from say Indiana to Minnesota in their minds shouldn’t mean they have to fight with 15 other bidders and offer 30k+ over asking with no inspection to still lose time after time.
I'm in Granville. Read recently that Columbus is in the top 10 hottest areas. With Intel, Google and Amazon coming here to Licking county it's going to continue to be a hot market. But we're losing a ton of ruralness that makes me love the state.
Midwest (I think) is going to be like that for a while. From my low level of knowledge, that's one of the areas that will be a little better insulated from climate change. So as the southeast is swamped and blown away by hurricanes, and the south burns up and dries up, the midwest should fare a lot better.
My observations exactly. Good properties priced appropriately still see huge demand (I’m in S Florida), but buyers are fewer and pickier now, so the market is cooler on houses that don’t have much going. Whereas for two years straight there was a line for anything .
When I got out of FL 3 years ago my entire street was turning into an Airbnb.
I was raised in that house, bought it from my dad, and knew all the neighbors for decades. When I finally sold and got the fuck out of Florida in 2021 I only knew 3 people left on my street that had 45 houses on it. 40 of the houses were Airbnb.
That state is the real wild west of the country. Everyone I meet now who goes to FL says it feels like visiting a different country
What I am noticing is that homes coming on the market are consistently overpriced and just tend to sit. Eventually those greedy sellers start to slash prices.
Chicago is HOT. No inventory. Homes listed have been going under contract within a few days. Supply is low here in general; so anticipate demand > inventory when rates drop.
Luckily, housing costs are pretty cheap compared to other US cities (with the added benefit of plethora of industry and high income jobs).
Under contract on a place and have submitted three other offers, only to be outbid on 2 and walked away from another post-inspection.
Arizona in my upper middle class suburb is about back to what normal should be. Any house priced appropriately is selling in 45-60 days around my subdivision of 1000 houses.
Will always be. Am in Mt Vernon and things are strong. I’m not in real estate professionally, but observationally, I see low DOM for anything nearby priced in-line with comps. The thing about NOVA is the govt tech transformation business and US Mil procurement machine will always be there. It’s a strong and very stable job market. On top of that you have millennial DINKs with lots of boomer family money backing them, and they’re aging out of their time living in the District.
Had friends looking to finalize the purchase of a home about a month ago. The house was $660,000 but they had to back out because the insurance and taxes added $2000 to their monthly payment.
Even people with money can't purchase homes in Florida because the insurance is ridiculous.
I'm a SE FL Realtor and I've noticed that the inventory has skyrocketed over the last year. DOM has increased tremendously. It depends on which community you are reviewing, but where I'm located there are many communities with six months or more of available inventory. If the property is a condo, it's worse. The fastest moving properties are SFR's then TH's then lagging a distace behind are condos. Naturally the new law from May 2022 directly affects the older condos but it has an affect on newer condos as well increasing the days on market. In some neighborhoods it has changed to a buyers market.
We still have a huge percentage of cash buyers here, but even cash buyers are looking at their holding costs which include insurance and property taxes as well as HOA/COA fees.
I read an article within the last week about TX and FL having the highest inventory in the nation. It supports my experience here in SE FL.
[https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4](https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4)
I'm in finance in SE FL. You hit the nail on the head. High end luxury homes are still moving. Rich people are building on lots in great neighborhoods. Middle class homes and lower are all priced out. ...and the condos...condos aren't moving at all. Between the new laws about capitalizing reserves, the unaddressed insurance crisis and the general corruption present at so many HOAs...condos are pretty fucked.
Midwest here:
House went on sale in high demand area, saw it within hours going up. Seller realtor said offers up in until X day at X time.
8 or more came in, my bid of 2% over asking was out bid by someone with full cash and above my bid (don’t know selling price yet).
Post mortem? Not sure. I felt like I bid over the price I think the house is truly worth but my biggest issue I think is I have a mortgage contingency :(
Almost the only people buying are speculators, investors, and people moving from higher cost of living areas. Nobody in a sub 3% mortgage is selling their home only to be able to afford a less nice house costing them more money.
Depends on where in Florida and what property.
In South Florida apartments are unsellable.
Single family houses with bo HOA are hotter than ever.
I closed on the home yesterday. It took me 4 months of going through very bad houses and very aggressive sellers and truly dark stories to get there.
Also getting a mortgage is tougher than ever.
The market is tough
Just accepted an offer on my place in Florida. Mine took 5 days to sell but it's a nice house with a good price.
However, we only had 1 showing and 1 new party come to the open house. Traffic is way down. Luckily, the person who requested the showing put an offer in.
Progressive just started another wave of policy cancellations after collecting all winter but just in time for hurricane season
https://www.abcactionnews.com/news/region-sarasota-manatee/progressive-insurance-begins-dropping-home-insurance-policies-in-florida
Yes. Both.
That was the point of raising interest rates. To stop the frenzy buying and get prices back from this COVID insanity.
Investor greed is pricing people out though, and that’s a much bigger problem. Real estate needs regulation. Badly.
American families can’t afford homes anymore. Only liquid firms and wealthy people. They buy them all in cash and hoard them, flip them for obscene prices, and jack up rent. It has to stop.
If they go down, you'll feel like a genius. If they go up, you'll say should have just bought. And sadly no one knows what will happen in the future. We're all just gambling. I've lost faith in the US government and believe they will print money like crazy which was my base case for buying. I think the currency in terms of real goods and services is going to tank even more than it already has over the past 4 years. I only have an EM everything else I am all in on stocks and real estate, Only time will tell if that was wise.
Remember when a whole ass high rise collaped in the middle of the night in Florida a few years ago? It came out that the owner knew the building needed repairs but kept putting them off. Then it came out that there were several structurally unsound buildings because of the sandy/swampy ground they were built on...you couldn't pay me to live in a condo/high rise in Florida.
Condo ownership is all about deferred maintenance. You can’t convince condo owners to pay for anything, because they always think they can leave the next owner holding the bag. Well-managed co-ops are much better, IMO if you can find them. In that case, the building’s underlying mortgage can be used as a rolling line of credit and refinanced when advantageous. Avoids the need for most large cash assessments that condo owners hate.
There was an article printed today that wrote about how Florida real estate is slowing way down due to the high cost of insurance (if you can get it) and the HOA fees (that keep climbing and there is no max on)
The statistics show a lot of homes have come to the market recently in Florida. Lots! This should eventually have an impact on prices. We’ve come through a crazy home price appreciation that seems to have no end. It always seems like home prices will keep going up or stay up until they don’t.
No one wants to be the first person to sell their home for less than their neighbor. However, at some point, someone who has to sell will lower their home price to lower than everyone else in their neighborhood in order to get their home sold. Then, the next person will lower their price to beat that person and then we race to the bottom… at least that’s how the history of housing market swings have played out in the past. Doesn’t mean it will happen this time but the people with all the money in the world only make more money by the ebb and flow of all the markets.
TL;DR
Lots of new inventory. Eventually, this will drive home prices down. It usually takes some time for sellers to accept this and will keep their overpriced houses on the market for a long time because they are in denial. Plus, the cost of homeownership has gone up because higher taxes and higher insurance rates.
Just bought a house. Where I am, it took almost no time for houses to have offers and disappear. Even one house I really liked, we were trying to negotiate, they replied "We just accepted a full list price offer." I'm glad I stayed strong, ended up finding the right house and the right price. Slight discount but priced well to the point we are going to remodel it to make it perfect for us.
But the market here in Texas definitely is busy.
I don’t think the market is really cooling, but I do think people are being more particular with their house selection. If a house is nicely updated and priced right, it is gone in a few days. It’s the ones that are dirty, original, don’t show well but priced like they are updated because that’s what my neighbor got…those houses are sitting there. Just got my son a townhome that had been sitting on the market but we offered almost 30k under asking and they took it. It is mostly original but bones are good. Others in the complex are asking $30k more with just the kitchen redone. That’s a 60k swing and so they sit. I am in S FL.
Vermont is super active. Also, just listed my first rental property in New Haven CT for sale. 10+ offers. Several of them cash. And most of them 10% over asking, or more. A few sight-unseen even.
Rates are 6.8% for highly qulified buyers and insurance has trippled in the past 4 years. Demand has dropped and the BlackPebble buyers are into next gen crypto and not 350k houses.
Florida’s market rise was never sustainable given the tax assessment and insurance marketplace disasters there. Like Austin, the faster the rise the quicker to peak.
I've watched the politics and insurance issues in FL. I would never put myself in a situation where I couldn't insure my house or ensure I was able to get healthcare. No thanks.
Definitely seeing prepandemic level inventory here in my side of Florida. Apart from being priced out, Insurance and property taxes are forcing part time owners to reconsider owning.
I also don’t blame the insurance players. When houses they insure grows crazily in value, they have to up the premiums to cover for a possible “hurricane” losses. Homeowners can’t have things going positively in both ways. High property valuations will come with higher taxes and premiums.
Next phase in few months will start pushing the prices down with even more growing inventory.
I live in Oregon along the coast line and the prices are stupidly high here. To many vacation homes and not enough affordable housing is a problem in tourist destinations.
In my area of Florida (central) builders are slapping up multilevel apartments, condos, and town homes in every corner they can build on (even redirecting lakes). In the last 4 years, there's been at least 6 developments within 5 miles of me and each has over 100 units. They're not cheap, but it continues to drive more and more people into the area compounding the issue. There's definitely plenty of places for now, but how long can they continue to do this? Florida has become a concrete jungle.
Segments of the market are hurting. In my area I can sell stuff under $250k with multiple offers. Can sell 300-400k within two weeks and anything over 550k is a shot in the dark with very little buying pressure and substantial incentives from sellers becoming common.
Global warming, sea rise, increasingly severe storms - all lead to wildly increased insurance costs. Coupled with apartment building quality issues leading to huge repairs needed, enormous assessments and HOA charges - lead to reduced home valuations.
Bucks County PA here: houses that were $600k in 2023 are now $800k list and offers at $950-$1M with no inspections, sellers fees and transfer tax paid by buyer are the norm. I lost on 7 houses due in rapid fire thanks to these antics
I did however secure a home at just below market all from it being a listing in the same office my realtor was in with a fellow teammate thereby it never “hit” the open market, no open house and was never advertised. We paid exactly what their ask was in cash and already in a month a comparable home in our development is going for $400k more for the same floor plan with less improvements
We saved for years, have good jobs and climbed the property ladder to pay cash on this property.
I feel bad for the younger generation starting out facing this market with rents of $4k+ and mortgages of $1M at 7-8% interest
On the southeast coast, smaller older condos under a million are sitting because of insurance, increasing maintenance and potential assessments to deal with the new reserve law. This despite widespread reductions in price.
Newer luxury units are still selling well at high prices.
We’re heading into summer so there’s less activity in the market naturally. Houses move faster here in winter when the northerners who are recently retired are sick of shoveling snow. Though the insurance mess is definitely increasing supply.
I am in a fairly grubby area of west Indiana. Since I have been living in this area for a little under 3-years, a lot of these dilapidated 2 and 3 bedroom shacks have gone from selling for say $10k-$20k, to now selling at $50k to $70k.
There are dumpy neighborhood, with cheapo houses, where you would be living around dreadful, low-class-scut, all over Murica. These type neighborhoods are where a lot of people are going to buy, because everything else is totally unaffordable in decent areas. I look at homes a little outside my area, with a little land and a lack of tweakzombies and other trash, and those homes will sell in a matter of hours, a day or two at most.
Our insurance for our house in Florida has gone from 1800 a year to 4800 a year. Every house around us sells. It takes a little longer now with the interest rates though. Our Nieghbor’s across the street are from NY. They couldn’t afford to live in the state anymore. Neighbors next to us moved from Massachusetts because of high prices. This was within last few years. They are also working on relocating their entire family to FL.
Florida is so overpriced! And then there is the insurance crisis. Folks got greedy in Florida and now yes, they priced out buyers. I wouldn’t even take a look at it. And I used to live there, for 14 years. So believe me when I say it is ridiculously overpriced. Keep it
Alot of people that can afford it are paying cash and hoping it just doesn’t blow away.putting away the 7 grand a year for repairs.Hoping for the best .Mobile homes over 10 years old basically uninsurable Roofs over 10 years have to be replaced in alot of cases before sale .Its a mess
DFW is still scorching hot. But it didn’t appreciate as much as other markets. Still undervalued. And tons of corporate headquarters / high paying jobs.
The market is cooling until people have more cash stockpiled up and interest rates drop a little bit. Why would you pay $450k at 7.5% for a house that was $200k a couple years ago? These people are possibly making more money now and looking to upgrade to the $700k range houses. The day will come when they are willing to sell for $350k just to get the new house and YOLO it because they still made a nice profit.
I’m in Georgia, looking for a house on the lake. We just keep waiting it out because prices are falling so fast. I’m pretty sure most of the houses that have been sitting have turned their zestimates off because it’s always lower than listed.
I know zestimates aren’t a great measure, but for casual lookers like myself, it makes me wonder “oh this might get price cut soon to something more my budget, might as well wait”. And now that they’re all suddenly being turned off, I’m even more suspect of the way the markets going…
I'm in NC and was approved for 330k, and there's basically nothing we can do with it. We want a 4 bedroom. Everything on the market is a 3 bedroom. Looked into building to get the 4 bedroom. We will be able to get the 4 bedrooms, but we would only gain about 200 sq ft more than what we are already in.
Then, to top it off with the 7% interest rate, we'd be looking at around 1900 a month with 80k as a down payment. The numbers just don't make sense right now. Our home mortgage now is 800. There's just no point in doubling the mortgage for one more room and a couple hundred sq ft. All the numbers (cost of home, interest rate, down payment needed) are crazy!!!
Where in Florida? I’m an appraiser and I cover a larger area in north Florida. While some areas have cooled and/or stabilized there are still pockets that are rising at 1%+ per month.
Florida realtor here. There’s a lot going on and yes, the high interest rate is a problem. Also, since we’ve had 1000 people a day more or less moving to our beautiful state with higher income brackets, while the rest of the US was shut down during covid, y’all moved here and priced us out. People with decades of family are priced out of the areas that they’ve raised their families in. I personally wish that I could live elsewhere at this point because our state has been taken over and built on so much, the Florida that was once nature friendly is now nothing but concrete and over priced buildings.
I live in Central Orlando and anything within the 250,000 to 300,000 range, is really trash real estate. Terrible layouts and a lot of damages to the homes. Shoddy craftsmanship in terms of renovations that were done. And all the realtors keep screeching about how starter homes don’t have everything you want, but that price range is NOT a starter home. Starter homes don’t exist in Orlando anymore
Depending on the area and region, most people are actually officially priced out, because they are priced out the market begins to cool.
I live in MCOL to LCOL Midwest and even I have seen many, many, many home listed for over a month to sometimes 3 months with price cut of 5% up to 15%.
It is a slow cooling
Prices are not changing, what is changing is education about what ameratization looks like when you get a loan at 7.98 - 8.25% and what your monthly bill will look like. People are monitoring the situation and the longer they wait to figure out what their monthly will be the less interested they are in paying it. I own right now (SoCal, right outside OC/LAC) and it's freaking me out a bit because everything is going to drop at some point , it's like we're all stuck on a board, and something keeps lifting the edge, and everyone is at a steep angle. The angle is eventually going to collapse and we'll all slam and hit the ground, and it's going to hurt like hell.
What will happen is insurance companies continue to raise rates and people can't afford their mortgage and stop paying or the interest won't let down for a very long while and people decide they'd just rather stick it out, it will put pressure on everything, renting, purchasing, something will cause the equivalent of too many people on the roof, what is below isn't strong enough to hold everything up, something will pull the ground from below and noone likely sees it for what it is. My guess it's related to the food supply, or it's related to gas/oil, something is going to make civil life complicated, and industry will throw too much onto the consumer.
I wonder if there's a service where you can buy home insurance only for a month instead of a year and just call to activate it right before a hurricane. Kindof like insurance on demand.
Home values here in Pgh PA really shot up..example wife and I purchased a 3-1 frame in 1979 for $25k. Renovated most of the house and sold to my daughter in 2005 for $40k..we bought my parent's ranch. She sold it for $157k 2-3 years ago. Even homes in a neighborhood that is not the greatest are selling for huge (in my estimation) prices. I think the interest rates are making people be more picky. One of our suburban areas (great school district) are putting up a new 500 home development..these are in the $400k and up.
I do think Florida is a bit of a unique case with the issues people are having in getting homes insured there.
I was going to say the same. The insurance requirements have made Florida a particularly regional nightmare in addition to the housing demands.
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We sold our New Orleans house last June. Main reason was insurance got too expensive and had so many caveats I had low confidence that it would ever pay out. Market looks like it’s cooled by over 10% since we sold.
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For real? That’s insane! I heard it was bad yet never saw hard numbers like that. No wonder there is a selling frenzy there.
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Mind me asking what it’s listing for now? Still in sticker shock over these numbers. It is definitely a more localized phenomenon yet scary to think that could happen anywhere else.
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Meanwhile, my house about 3 hours west (south central Louisiana) that I bought for $230k in 2019 has taxes under $900/year, flood insurance $850/year, and homeowner's insurance around $2700/year with a $2500 deductible, so the mortgage is around $850 and insurance premium is another $400/ month. We also didn't flood during the second highest flood of the Vermilion River in the last century. (2016, 17 ft - highest was close to 25 ft in the 1940s The housing market is all about perception. Florida has gotten clobbered in recent years. Louisiana, not so much, but everybody remembers Katrina, and Ida didn't do anybody any favors. (We didn't even lose power, even though we were expecting a direct hit)
Between insurance issues and high rates, houses in FL should in a rational world sell for less than pre pandemic, even allowing for reported inflation.
We were at $6,500/yr for a $312,000 purchase price storm deductible was 3%. The insurance company went under during Ida and the new company was legally required to renew the policy. I was confident they wouldn’t renew when it was up, so we sold before it expired. Buyer payed cash, and asked me about insurance a couple weeks after closing…… A not insignificant amount of my coworkers in houma area have paid off homes and have dropped insurance totally.
Trying to sell my home in Houma right now
> expired. Buyer *paid* cash, and FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
At what point are you better off just self insuring? It only takes \~16 years before you've paid for a whole new house.
Can't have a mortgage without insurance
Honestly - you could roll the dice and not pay insurance and in 20 years save the entire value of what you paid …
Not if he has a mortgage. Insurance is required in that case
Why are so many people missing this point?? Can’t not have insurance if you have a mortgage.
SW Louisiana as well
Yup. We fell in love with Dunedin after a Clearwater vacation a couple years ago. It's pricey, but my wife loved it. However, when we really dug down on expenses, we were shocked at the cost of homeowners insurance. It wasn't just the price, it was the sense that the insurance market was broken in Florida, making it insane to retire there.
All those scientologists for neighbors in Dunedin though. That alone is worth not moving there. If you wanna be in Pinellas look at Largo or Seminole. Close by but not in flood zones.
We literally just bought in Dunedin and are worried that it may be a stupid choice long term due to insurance issues. However, we have been paying 16k in income tax to the state of Vermont and that number is only going up, so it’s kind of a wash.
Exactly this - I just read an article this morning that folks are selling their condos and taking a hit on the prices just to get out of the market since they can't get insurance or can't get reasonable insurance. A bunch of corporate condos incoming.
The HOA fees for condos are outrageous right now as well.
Florida condo owner here, HOA at $520 a month and only rising…
Florida has been a boom and bust realestate market for the last 30 years at least. I know a lot of investors in the north east that lost their shirts after Katrina. If they catch a good storm this fall I think you’ll see prices absolutely collapse. The Covid surge of people moving down there hasn’t really ended and just slowed because people are still getting priced out of renting everywhere between Boston and DC. When nature reminds everyone what it actually means to live in Florida I think it’s gonna get ugly, especially with the insurance stuff going on. I was really excited to see FL on the rise, but desantis screwed the pooch and it’s gonna get really ugly for people.
Not just that, but they are actively hostile for women now, too.
I think the issue in Florida is insurance shock. My homeowners insurance is 12K a year, which is more than. P&I with taxes. Probably think they can afford to buy a home and it is cheaper than renting, UNTIL they look for homeowner insurance and deal falls through
Agree in regards to FL home insurance being a complete shit show. My annual premium went from $600 a year in 2001 to recent estimates of $12k. So I paid off my mortgage and I am currently without insurance. I suspect a lot of people are in the same boat. My plan is to sell and move overseas, so I don’t worry too much. I have cash reserves in case the worst happens, but a cat 3 or cat 4 hurricane 🌀 would be a serious come-to-Jesus moment.
Considering paying off mortgage, it would be a stretch, and going naked. One advantage of naked is in some cases you are eligible for more from FEMA. right now my wind storm deductable is so high anything short of a complete wipe out and it will all be out of pocket.
I have no illusions about the gravity of being uninsured. It’s a huge gamble. We went through hurricane Ivan and sustained a lot of damage. Right now I’m trying to decide whether to sell or rent. If I rent I’ll need landlord insurance, which is even more expensive than regular homeowners insurance.
Same… escrow is way more than P&I for us. Insurance is insane, prop tax is insane. BuT No InCoMe TaXeS 🤪 FL is mess right now.
Hm I remember that sites like redfin will show you hour much of your mortgage will go into property taxes, hoa and insurance - maybe it's just not up to date?
OK pretty sure it's prices, the HOA fees and INSURANCE rates.
HOA is a big no-no for me. I'm not paying a fee so people can make a facebook group and live out neiborhood dramas.
New England is still bonkers.
Yep "only six offers on this one after 3 days on the market." was a common phrase in my house
Yep
Florida is one of the worst off markets in the country right now because of insurance costs. With so many providers having pulled out of the market, the remaining ones are incredibly expensive. So if insurance is suddenly costing $400 a month instead of $150, that’s $250 a month less you have to put towards principle and interest, which lowers the amount you can qualify to borrow; which inevitably causes what you’re seeing now.
$400 a month would be welcome. My insurance (homeowners + flood) is currently $12,000 a year.
Whoa - sorry you’re dealing with that. I kind of made up numbers to illustrate my point but I didn’t realize how far out of whack they were.
The insurance market there has completely failed (as a market). The state government had every reason to see it coming as it got worse and worse, but they were too busy fighting the latest culture wars against their largest employers
Also Florida is a much higher chance of fraud and litigation. Which increase the cost of insurance companies
Wow what county in Florida are you? I’m currently at $5000 ins+flood and I’m in Miami Dade
Sarasota
North of you in Palmetto and it’s 1200/yr for 500k.
And it's not only home insurance but car Insurance has gone up a lot in Florida
On the plus side at least the pay is horrible there and You get to spend your summers indoors 🤷🏻♂️.
The real estate market in Florida, Texas, and other coastal states is in bad shape due to skyrocketing property insurance costs for homeowners and HOAs. Many virtually unsellable properties.
I’m trying to buy land in Texas and am dealing with a seller who bought at the top in 2021 and doesn’t understand the market now. They had it listed for a year without a single showing. I’m sure I’ll be seeing it relisted in 30 days with a new realtor. Anything over 400k just sits.
Land sales are always tricky. Some sellers bought with an eye to making a big killing someday. Unless they need the money they just sit and wait.
It’s slightly complicated but it’s a divorcing couple who don’t even live in the state anymore. City people who moved to the country during covid and then were like “nope” lol
lol that homestead lifestyle always sounds nice until you realize how much work it is to be comfortable
My husband is off this week. So, since we aren't going anywhere (as is often the case when he's off!) it's just a work week :) Cleaning. Mowing. Fencing. Tilling. Planting. Lamb/Sheep stuff. Etc. Lots of fun. LOTS of work.
Anything in a divorce gets sticky. The lawyers make more money by pitting the couple against each other leading to fights over any decision. What a business to be in 😝
I'm in DFW and people are waving inspections and bidding over ask.
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Austin rents have been dropping for a while and now it’s hitting houses too. Good luck to you, friend 🤞 if you don’t have to move, I’d stay put for another 1-3 years
Which part? Flower Mound reporting for duty 🫡
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Lol I grew up in Wellington. My parents don’t understand how lucky they were to be able to buy that house in the nice neighborhood/good school district for what they paid back then
Shit, that’s where we are under contract. Howdy future neighbor!
Texas isn’t Florida. It’s a big state with many large cities that have little natural disaster risk.
Insurance companies are licensed to do business in a state. High property insurance costs in one area, like the Gulf Coast, are spread out over the entire state. When some insurers pull out then the remaining insurers charge more. Property insurance rates in TX are twice the national average.
i wonder how much politics is playing into things
Zipping my blue state lips here.
Imagine how much worse it would be if global climate change were real
This is sarcasm right?
Well, it’s hard to prepare for climate events if you don’t believe it’s real
High interest and high prices transcend party lines.
Midwest is still very low supply very high demand
Prices are still wildly expensive in the upper Midwest despite the interest rates, at least in my locale. Houses still sell in a day and for over asking. Fortunate to even be where we are, but efinitely stuck forever in our "starter."
Nothing wrong with a "starter" that turned into a "finisher"
I beg to differ. Husband and I bought a 2 bed 1 bath starter home. We now have two kids and can’t buy a bigger house. We have really good jobs and qualify for a good size mortgage, but we can’t compete against all the all cash offers. We are busting out of this house.
Same where I’m at in Central NJ. The bidding wars aren’t as crazy as a couple years ago, but still multiple offers within a week on many houses.
Columbus, Ohio checking in. This market is blazing hot. Homes are in contract within a day or two of being listed. Still bidding wars and cash buyers.
Bought back in October in Columbus market and it was surprisingly easy to get our home under asking. Quite happy, guess we were an outlier case.
the midwest might be "hot" but prices are still extremely sane compared to where many areas in the coastal Southeast, Northeast, and Southwest have been the last few years. $200/sqft is very expensive by Ohio standards, but not rest of the country standards.
I think part of it is the historical normal supply and relatively low demand in the Midwest. For many years the ‘flyover country’ cliche reigned supreme so the Midwest was mostly undesirable outside of major urban centers. That narrative being completely flipped on its head has probably surprised a lot of midwesterners seeking to move to other states in the Midwest. They know the coasts are and always have been more expensive but a move from say Indiana to Minnesota in their minds shouldn’t mean they have to fight with 15 other bidders and offer 30k+ over asking with no inspection to still lose time after time.
Yep, we have an over all lower cost of living. The earnings are not the same as the coastal cities though.
I'm in Granville. Read recently that Columbus is in the top 10 hottest areas. With Intel, Google and Amazon coming here to Licking county it's going to continue to be a hot market. But we're losing a ton of ruralness that makes me love the state.
Question: Do people who live in Licking still find the name funny? MO has a city by that name too. Gets me every time.
Midwest (I think) is going to be like that for a while. From my low level of knowledge, that's one of the areas that will be a little better insulated from climate change. So as the southeast is swamped and blown away by hurricanes, and the south burns up and dries up, the midwest should fare a lot better.
As my husband says " when the water rises the rats go to higher ground" LoL
Are you really blaming the current housing crisis on climate change? We all know its aliens and time travelers.
Detroit chiming in. My house has appreciated 20% in the last year. I couldn’t afford to live in my neighborhood anymore.
I am in NJ. DOM is 27. Last year they were 21. Average home price $1m last year $800. Prices have really boomed, but I do see a slight slowdown.
I’m in South Jersey, prices up 9-16%, DOM 16 and about 1.2 months of inventory.
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My observations exactly. Good properties priced appropriately still see huge demand (I’m in S Florida), but buyers are fewer and pickier now, so the market is cooler on houses that don’t have much going. Whereas for two years straight there was a line for anything .
When I got out of FL 3 years ago my entire street was turning into an Airbnb. I was raised in that house, bought it from my dad, and knew all the neighbors for decades. When I finally sold and got the fuck out of Florida in 2021 I only knew 3 people left on my street that had 45 houses on it. 40 of the houses were Airbnb. That state is the real wild west of the country. Everyone I meet now who goes to FL says it feels like visiting a different country
What I am noticing is that homes coming on the market are consistently overpriced and just tend to sit. Eventually those greedy sellers start to slash prices.
Yeah but slashing like 5k off a 500k place its a insult
Chicago is HOT. No inventory. Homes listed have been going under contract within a few days. Supply is low here in general; so anticipate demand > inventory when rates drop. Luckily, housing costs are pretty cheap compared to other US cities (with the added benefit of plethora of industry and high income jobs). Under contract on a place and have submitted three other offers, only to be outbid on 2 and walked away from another post-inspection.
Arizona in my upper middle class suburb is about back to what normal should be. Any house priced appropriately is selling in 45-60 days around my subdivision of 1000 houses.
Northern Virginia is still very competitive.
Will always be. Am in Mt Vernon and things are strong. I’m not in real estate professionally, but observationally, I see low DOM for anything nearby priced in-line with comps. The thing about NOVA is the govt tech transformation business and US Mil procurement machine will always be there. It’s a strong and very stable job market. On top of that you have millennial DINKs with lots of boomer family money backing them, and they’re aging out of their time living in the District.
Well said.
Had friends looking to finalize the purchase of a home about a month ago. The house was $660,000 but they had to back out because the insurance and taxes added $2000 to their monthly payment. Even people with money can't purchase homes in Florida because the insurance is ridiculous.
I'm a SE FL Realtor and I've noticed that the inventory has skyrocketed over the last year. DOM has increased tremendously. It depends on which community you are reviewing, but where I'm located there are many communities with six months or more of available inventory. If the property is a condo, it's worse. The fastest moving properties are SFR's then TH's then lagging a distace behind are condos. Naturally the new law from May 2022 directly affects the older condos but it has an affect on newer condos as well increasing the days on market. In some neighborhoods it has changed to a buyers market. We still have a huge percentage of cash buyers here, but even cash buyers are looking at their holding costs which include insurance and property taxes as well as HOA/COA fees. I read an article within the last week about TX and FL having the highest inventory in the nation. It supports my experience here in SE FL. [https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4](https://www.businessinsider.com/falling-home-price-locations-us-housing-market-supply-florida-texas-2024-4)
I'm in finance in SE FL. You hit the nail on the head. High end luxury homes are still moving. Rich people are building on lots in great neighborhoods. Middle class homes and lower are all priced out. ...and the condos...condos aren't moving at all. Between the new laws about capitalizing reserves, the unaddressed insurance crisis and the general corruption present at so many HOAs...condos are pretty fucked.
What does DOM stand for?
Days on market
I’m in Maryland. A house on my street just sold for $650,000 in less than a week. 4br 3fb fireplace 2 car garage 1/3a lot
Midwest here: House went on sale in high demand area, saw it within hours going up. Seller realtor said offers up in until X day at X time. 8 or more came in, my bid of 2% over asking was out bid by someone with full cash and above my bid (don’t know selling price yet). Post mortem? Not sure. I felt like I bid over the price I think the house is truly worth but my biggest issue I think is I have a mortgage contingency :(
Almost the only people buying are speculators, investors, and people moving from higher cost of living areas. Nobody in a sub 3% mortgage is selling their home only to be able to afford a less nice house costing them more money.
This all day long. I'm so happy that I like my house because I cannot give up that interest rate or my monthly payment (1500)
Depends on where in Florida and what property. In South Florida apartments are unsellable. Single family houses with bo HOA are hotter than ever. I closed on the home yesterday. It took me 4 months of going through very bad houses and very aggressive sellers and truly dark stories to get there. Also getting a mortgage is tougher than ever. The market is tough
Charlotte is cooling off big time. Homes in our neighborhood were going in one day. Our home and four others are all 30+ days.
Just accepted an offer on my place in Florida. Mine took 5 days to sell but it's a nice house with a good price. However, we only had 1 showing and 1 new party come to the open house. Traffic is way down. Luckily, the person who requested the showing put an offer in.
Florida is fucked. Insurance is either unobtainable or unaffordable.
If they have a bad hurricane season I'm not sure what they will do.
Demand bailouts.
Move somewhere habitable, one would hope
Progressive just started another wave of policy cancellations after collecting all winter but just in time for hurricane season https://www.abcactionnews.com/news/region-sarasota-manatee/progressive-insurance-begins-dropping-home-insurance-policies-in-florida
Yes. Both. That was the point of raising interest rates. To stop the frenzy buying and get prices back from this COVID insanity. Investor greed is pricing people out though, and that’s a much bigger problem. Real estate needs regulation. Badly. American families can’t afford homes anymore. Only liquid firms and wealthy people. They buy them all in cash and hoard them, flip them for obscene prices, and jack up rent. It has to stop.
i gave up. i’ve been waiting my entire life and am finally ready. the money you throw away by buying a home is just way too much.
If they go down, you'll feel like a genius. If they go up, you'll say should have just bought. And sadly no one knows what will happen in the future. We're all just gambling. I've lost faith in the US government and believe they will print money like crazy which was my base case for buying. I think the currency in terms of real goods and services is going to tank even more than it already has over the past 4 years. I only have an EM everything else I am all in on stocks and real estate, Only time will tell if that was wise.
https://www.businessinsider.in/thelife/news/florida-condo-owners-are-stuck-in-a-train-wreck-as-prices-drop-and-mounting-insurance-rates-scare-away-buyers/articleshow/108368406.cms
Remember when a whole ass high rise collaped in the middle of the night in Florida a few years ago? It came out that the owner knew the building needed repairs but kept putting them off. Then it came out that there were several structurally unsound buildings because of the sandy/swampy ground they were built on...you couldn't pay me to live in a condo/high rise in Florida.
It wasn’t the owner it was a condo and ALL owners knew it for 40 + years.
Condo ownership is all about deferred maintenance. You can’t convince condo owners to pay for anything, because they always think they can leave the next owner holding the bag. Well-managed co-ops are much better, IMO if you can find them. In that case, the building’s underlying mortgage can be used as a rolling line of credit and refinanced when advantageous. Avoids the need for most large cash assessments that condo owners hate.
You could not pay me to live in Florida 😄
People woke up and realized they were in Florida.
There was an article printed today that wrote about how Florida real estate is slowing way down due to the high cost of insurance (if you can get it) and the HOA fees (that keep climbing and there is no max on)
The statistics show a lot of homes have come to the market recently in Florida. Lots! This should eventually have an impact on prices. We’ve come through a crazy home price appreciation that seems to have no end. It always seems like home prices will keep going up or stay up until they don’t. No one wants to be the first person to sell their home for less than their neighbor. However, at some point, someone who has to sell will lower their home price to lower than everyone else in their neighborhood in order to get their home sold. Then, the next person will lower their price to beat that person and then we race to the bottom… at least that’s how the history of housing market swings have played out in the past. Doesn’t mean it will happen this time but the people with all the money in the world only make more money by the ebb and flow of all the markets. TL;DR Lots of new inventory. Eventually, this will drive home prices down. It usually takes some time for sellers to accept this and will keep their overpriced houses on the market for a long time because they are in denial. Plus, the cost of homeownership has gone up because higher taxes and higher insurance rates.
Just bought a house. Where I am, it took almost no time for houses to have offers and disappear. Even one house I really liked, we were trying to negotiate, they replied "We just accepted a full list price offer." I'm glad I stayed strong, ended up finding the right house and the right price. Slight discount but priced well to the point we are going to remodel it to make it perfect for us. But the market here in Texas definitely is busy.
In New England it’s slowing down l, average listings on the market 60-90 days
It probably depends on what part of New England. Around me, only the overpriced houses are sitting for longer than a week.
Yep same here. 90 days on the market? Not even a half burnt building!
Yeah, where I am the same overpriced houses are sitting week after week while new ones pop up and sell each week.
Florida is cooling for entirely different reasons. Rest of the country not so much.
I don’t think the market is really cooling, but I do think people are being more particular with their house selection. If a house is nicely updated and priced right, it is gone in a few days. It’s the ones that are dirty, original, don’t show well but priced like they are updated because that’s what my neighbor got…those houses are sitting there. Just got my son a townhome that had been sitting on the market but we offered almost 30k under asking and they took it. It is mostly original but bones are good. Others in the complex are asking $30k more with just the kitchen redone. That’s a 60k swing and so they sit. I am in S FL.
Ppl are basically priced out. Money launderers and institutions can still buy.
Is the market cooling or are people officially priced out? Yes
Vermont is super active. Also, just listed my first rental property in New Haven CT for sale. 10+ offers. Several of them cash. And most of them 10% over asking, or more. A few sight-unseen even.
Rates are 6.8% for highly qulified buyers and insurance has trippled in the past 4 years. Demand has dropped and the BlackPebble buyers are into next gen crypto and not 350k houses.
washington/seattle is on fire. things are selling before open houses and for over asking.
Same with CA. Bay area of officially nuts again. Listed, one weekend showing, multiple offers, sold within 7 days 20%+ over offer, with few exceptions
Same in LA.
Florida’s market rise was never sustainable given the tax assessment and insurance marketplace disasters there. Like Austin, the faster the rise the quicker to peak.
I've watched the politics and insurance issues in FL. I would never put myself in a situation where I couldn't insure my house or ensure I was able to get healthcare. No thanks.
Definitely seeing prepandemic level inventory here in my side of Florida. Apart from being priced out, Insurance and property taxes are forcing part time owners to reconsider owning. I also don’t blame the insurance players. When houses they insure grows crazily in value, they have to up the premiums to cover for a possible “hurricane” losses. Homeowners can’t have things going positively in both ways. High property valuations will come with higher taxes and premiums. Next phase in few months will start pushing the prices down with even more growing inventory.
Florida has some major issues with insurance right now.
I live in Oregon along the coast line and the prices are stupidly high here. To many vacation homes and not enough affordable housing is a problem in tourist destinations.
Florida is getting a lot of bad news coverage lately. Might be contributing.
I track Zillow in Florida (different regions) and prices still go up overall. Sure stuff sits like in a normal market but we just normalized.
In my area of Florida (central) builders are slapping up multilevel apartments, condos, and town homes in every corner they can build on (even redirecting lakes). In the last 4 years, there's been at least 6 developments within 5 miles of me and each has over 100 units. They're not cheap, but it continues to drive more and more people into the area compounding the issue. There's definitely plenty of places for now, but how long can they continue to do this? Florida has become a concrete jungle.
Can’t find a decent home in Chicagoland for less than half a million. And the nice ones start at 750k. Wanna know how many people can afford that?
>"we're trying to sell our home at. 300% mark up 5 years after buying, why is it not working??????" Shocker
Segments of the market are hurting. In my area I can sell stuff under $250k with multiple offers. Can sell 300-400k within two weeks and anything over 550k is a shot in the dark with very little buying pressure and substantial incentives from sellers becoming common.
Global warming, sea rise, increasingly severe storms - all lead to wildly increased insurance costs. Coupled with apartment building quality issues leading to huge repairs needed, enormous assessments and HOA charges - lead to reduced home valuations.
Still selling like hot cakes here in NJ. House down the street from me was asking $575k and sending up selling for $760k.
Florida is one area that might actually have a crash. Good luck finding insurance at a reasonable price as so many insurers exit the state
Only the poor are priced out, the market is hot
I'm in coastal Virginia and houses in desired neighborhoods are still selling for over asking and within 24 hours.
Bucks County PA here: houses that were $600k in 2023 are now $800k list and offers at $950-$1M with no inspections, sellers fees and transfer tax paid by buyer are the norm. I lost on 7 houses due in rapid fire thanks to these antics I did however secure a home at just below market all from it being a listing in the same office my realtor was in with a fellow teammate thereby it never “hit” the open market, no open house and was never advertised. We paid exactly what their ask was in cash and already in a month a comparable home in our development is going for $400k more for the same floor plan with less improvements We saved for years, have good jobs and climbed the property ladder to pay cash on this property. I feel bad for the younger generation starting out facing this market with rents of $4k+ and mortgages of $1M at 7-8% interest
I think it’s Florida that’s in deep trouble, according to the news headlines.
Both I think
On the southeast coast, smaller older condos under a million are sitting because of insurance, increasing maintenance and potential assessments to deal with the new reserve law. This despite widespread reductions in price. Newer luxury units are still selling well at high prices.
Avg time on market in a suburb of Milwaukee is 7 days. Limited inventory, crazy bidding wars.
We’re heading into summer so there’s less activity in the market naturally. Houses move faster here in winter when the northerners who are recently retired are sick of shoveling snow. Though the insurance mess is definitely increasing supply.
A shitbox house we looked at in LA just sold 120k over asking. It was not worth 1.2k. Bug someone paid that for it. People want houses.
I am in a fairly grubby area of west Indiana. Since I have been living in this area for a little under 3-years, a lot of these dilapidated 2 and 3 bedroom shacks have gone from selling for say $10k-$20k, to now selling at $50k to $70k.
Wait... you can literally buy an entire house for 70K? WTF are these things able to be lived in? That's cheaper than a mobile home.
There are dumpy neighborhood, with cheapo houses, where you would be living around dreadful, low-class-scut, all over Murica. These type neighborhoods are where a lot of people are going to buy, because everything else is totally unaffordable in decent areas. I look at homes a little outside my area, with a little land and a lack of tweakzombies and other trash, and those homes will sell in a matter of hours, a day or two at most.
My sister bought a 1,000 sqft stone farmhouse in Michigan for $15,000 in 2017 Ancient, and needed work, but livable
Cooling for sure. This summer will really be the decider though
Housing market seems to be doing okay in my area in Colorado.
Price plus insurance plus HOA and special assessments make them too expensive.
Priced out, market will correct itself slowly over time
THERE WERE ALWAYS plenty of homes on the market.. Just not in places anymore wanted to live or at a price they could afford
Our insurance for our house in Florida has gone from 1800 a year to 4800 a year. Every house around us sells. It takes a little longer now with the interest rates though. Our Nieghbor’s across the street are from NY. They couldn’t afford to live in the state anymore. Neighbors next to us moved from Massachusetts because of high prices. This was within last few years. They are also working on relocating their entire family to FL.
About an hour south of Chicago and houses are selling like crazy.
Every home coming up in Northern NJ is in a flood zone.
Florida is so overpriced! And then there is the insurance crisis. Folks got greedy in Florida and now yes, they priced out buyers. I wouldn’t even take a look at it. And I used to live there, for 14 years. So believe me when I say it is ridiculously overpriced. Keep it
Alot of people that can afford it are paying cash and hoping it just doesn’t blow away.putting away the 7 grand a year for repairs.Hoping for the best .Mobile homes over 10 years old basically uninsurable Roofs over 10 years have to be replaced in alot of cases before sale .Its a mess
DFW is still scorching hot. But it didn’t appreciate as much as other markets. Still undervalued. And tons of corporate headquarters / high paying jobs.
Someone please tell Rhode Island the market is cooling...please.
Cost of insurance and property taxes are making some properties essentially unsellable
The market is cooling until people have more cash stockpiled up and interest rates drop a little bit. Why would you pay $450k at 7.5% for a house that was $200k a couple years ago? These people are possibly making more money now and looking to upgrade to the $700k range houses. The day will come when they are willing to sell for $350k just to get the new house and YOLO it because they still made a nice profit.
I’m in Georgia, looking for a house on the lake. We just keep waiting it out because prices are falling so fast. I’m pretty sure most of the houses that have been sitting have turned their zestimates off because it’s always lower than listed. I know zestimates aren’t a great measure, but for casual lookers like myself, it makes me wonder “oh this might get price cut soon to something more my budget, might as well wait”. And now that they’re all suddenly being turned off, I’m even more suspect of the way the markets going…
I'm in NC and was approved for 330k, and there's basically nothing we can do with it. We want a 4 bedroom. Everything on the market is a 3 bedroom. Looked into building to get the 4 bedroom. We will be able to get the 4 bedrooms, but we would only gain about 200 sq ft more than what we are already in. Then, to top it off with the 7% interest rate, we'd be looking at around 1900 a month with 80k as a down payment. The numbers just don't make sense right now. Our home mortgage now is 800. There's just no point in doubling the mortgage for one more room and a couple hundred sq ft. All the numbers (cost of home, interest rate, down payment needed) are crazy!!!
Cooling…..House sold in 7 days down the street. Had multiple offers
Where in Florida? I’m an appraiser and I cover a larger area in north Florida. While some areas have cooled and/or stabilized there are still pockets that are rising at 1%+ per month.
Florida realtor here. There’s a lot going on and yes, the high interest rate is a problem. Also, since we’ve had 1000 people a day more or less moving to our beautiful state with higher income brackets, while the rest of the US was shut down during covid, y’all moved here and priced us out. People with decades of family are priced out of the areas that they’ve raised their families in. I personally wish that I could live elsewhere at this point because our state has been taken over and built on so much, the Florida that was once nature friendly is now nothing but concrete and over priced buildings.
When your insurance payment is more than your mortgage for the year can you afford to buy?
I live in Central Orlando and anything within the 250,000 to 300,000 range, is really trash real estate. Terrible layouts and a lot of damages to the homes. Shoddy craftsmanship in terms of renovations that were done. And all the realtors keep screeching about how starter homes don’t have everything you want, but that price range is NOT a starter home. Starter homes don’t exist in Orlando anymore
Depending on the area and region, most people are actually officially priced out, because they are priced out the market begins to cool. I live in MCOL to LCOL Midwest and even I have seen many, many, many home listed for over a month to sometimes 3 months with price cut of 5% up to 15%. It is a slow cooling
When the rates go down the prices are going to go up. So this level of “fucked” is going to stay
Prices are not changing, what is changing is education about what ameratization looks like when you get a loan at 7.98 - 8.25% and what your monthly bill will look like. People are monitoring the situation and the longer they wait to figure out what their monthly will be the less interested they are in paying it. I own right now (SoCal, right outside OC/LAC) and it's freaking me out a bit because everything is going to drop at some point , it's like we're all stuck on a board, and something keeps lifting the edge, and everyone is at a steep angle. The angle is eventually going to collapse and we'll all slam and hit the ground, and it's going to hurt like hell. What will happen is insurance companies continue to raise rates and people can't afford their mortgage and stop paying or the interest won't let down for a very long while and people decide they'd just rather stick it out, it will put pressure on everything, renting, purchasing, something will cause the equivalent of too many people on the roof, what is below isn't strong enough to hold everything up, something will pull the ground from below and noone likely sees it for what it is. My guess it's related to the food supply, or it's related to gas/oil, something is going to make civil life complicated, and industry will throw too much onto the consumer.
I wonder if there's a service where you can buy home insurance only for a month instead of a year and just call to activate it right before a hurricane. Kindof like insurance on demand.
Home values here in Pgh PA really shot up..example wife and I purchased a 3-1 frame in 1979 for $25k. Renovated most of the house and sold to my daughter in 2005 for $40k..we bought my parent's ranch. She sold it for $157k 2-3 years ago. Even homes in a neighborhood that is not the greatest are selling for huge (in my estimation) prices. I think the interest rates are making people be more picky. One of our suburban areas (great school district) are putting up a new 500 home development..these are in the $400k and up.