Mortgage rates

[URGatorBait]

https://www.cnbc.com/2024/05/01/florida-real-estate-struggles-as-motivated-sellers-flood-market.html

Can't be, Crete says this isn't true

 

[FireFoley]

Can't be, Crete says this isn't true

I did not write it I just posted it FWIW. My opinion is that most of the single family homes they talk about are in SW FL in towns where lets be honest, no one wants to live. Now in my area which I am acutely aware of, condos are a nightmare. I looked at one yesterday, asking 340K. Original ask was 475K. Math says that is a 28% price drop from original and that is going on all over the place. This place would have gone for 500K late 2021 thru mid 2022 when people were doing stoopid shyt due to the Kung Flu. The problem is that sellers haxe decided that the HOA increases are for REAL, the special assessments are for REAL and the need to build reserves are for REAL. Problem is they want to get the prices that their neighbor got 3 years ago. "Hey it has been 3 years should my place not have appreciated?" No dypshyt it appreciated 100%+ already in 3 years, mortgage rates have tripled and HOA fees have doubled. I know math is a difficult subject, but common sense is not.

 

[LagoonGator68]

Can't be, Crete says this isn't true

Time for you to buy your forever home…check it out…Report back.

 

[Concrete Helmet]

Time for you to buy your forever home…check it out…Report back.

Yeah....He's been price shopping for 5 years now.....

 

[Concrete Helmet]

I did not write it I just posted it FWIW. My opinion is that most of the single family homes they talk about are in SW FL in towns where lets be honest, no one wants to live. Now in my area which I am acutely aware of, condos are a nightmare. I looked at one yesterday, asking 340K. Original ask was 475K. Math says that is a 28% price drop from original and that is going on all over the place. This place would have gone for 500K late 2021 thru mid 2022 when people were doing stoopid shyt due to the Kung Flu. The problem is that sellers haxe decided that the HOA increases are for REAL, the special assessments are for REAL and the need to build reserves are for REAL. Problem is they want to get the prices that their neighbor got 3 years ago. "Hey it has been 3 years should my place not have appreciated?" No dypshyt it appreciated 100%+ already in 3 years, mortgage rates have tripled and HOA fees have doubled. I know math is a difficult subject, but common sense is not.

Are these condo's investment or owner occupied?....YUGE REAL difference...yes, some investors (stupid ones who overpaid 2-3 years ago and are using leverage) are probably looking to sell....owner occupied ones are probably either paid off or the resident owners are "locked in" with their 2.5-4.0% interest rate and can't afford to go anywhere else(upsize/downsize)

I think the FED needs to get mortgage rates actually LOWER than they were 2.5 years ago for a short period of time, like say 6-8 months, and then let the market auto correct itself after that...

 

[FireFoley]

Are these condo's investment or owner occupied?....YUGE REAL difference...yes, some investors (stupid ones who overpaid 2-3 years ago and are using leverage) are probably looking to sell....owner occupied ones are probably either paid off or the resident owners are "locked in" with their 2.5-4.0% interest rate and can't afford to go anywhere else(upsize/downsize)

I think the FED needs to get mortgage rates actually LOWER than they were 2.5 years ago for a short period of time, like say 6-8 months, and then let the market auto correct itself after that...

Most of the ones I look at are owner occupied. I am looking at them as investments only b/c most have a hold period of 1-3 years before you can rent them out, so that also affects price. These are not waterfront but some are decent areas and these people cannot afford more than double HOA's and 4 and 5 figure special assessments. And at these prices, still, it does not make much difference b/c even if and when they could be rented being cash flow positive is a stretch. Some are even paid off but what I think you are missing still Crete is a lot of people live on a fixed budget young or old, and these increases have crushed them.

 

[Concrete Helmet]

And at these prices, still, it does not make much difference b/c even if and when they could be rented being cash flow positive is a stretch.

That's why I would never buy a condo especially for investment purposes....you can't control assessment cost. And you are limiting your market audience(renters) since people with kids(80% of all renters) like a yard and no joined walls/restrictions and such.

 

[URGatorBait]

Yeah....He's been price shopping for 5 years now.....

No, I've been patiently waiting while not making enough money

 

[URGatorBait]

Time for you to buy your forever home…check it out…Report back.

The burial plots are already paid for

 

[FireFoley]

The burial plots are already paid for

Are those eligible for a reverse mortgage?