By Realist

July 17, 2006 03:25 PM | Link to this

So what? A lot of folks eye lovingly at a sleek Mercedes BMW or perhaps even a Ferrari…but they end up buying a Ford, Chevy or Saturn since it’s a matter of what thay can afford or what being practical dictates. How is this any different in housing costs. It’s basic supply and demand, whether you are a fan of So FL or not… many people will fork over whatever it takes to live here! To each is own.

By thehousingbubbleblog.com

July 17, 2006 05:13 PM | Link to this

The problem is that we have Ferrari median home prices for Yugo-type housing and incomes.

By Doing Just Fine Thanks

July 17, 2006 06:03 PM | Link to this

Sounds like bubbleboy can no longer afford this area. Suggest you move inland and make room for those who are much more affluent and well off ..or you can just keep waiting for overall housing costs to decrease as you wait in vain clinging to the belief of an impending Real Estate crash!

By Prices?

July 17, 2006 07:23 PM | Link to this

Don’t know what listings you guys use, but I have been watching prices drop steadily for months. Some very nice places are not moving despite incentives like covering closing costs, etc. I don’t have a dog in this fight, but truth is truth. Just look at sites and track some listings. Wont be the end of the world, but anyone who really wants to sell now or next few months is not going to get the huge numbers of last year. If you don’t really need to sell might gamble on better market next year, but then you also have another year of Ins.,Taxes, maint. etc. Good Luck to both camps, try keeping it civil- its only money .

By TH

July 17, 2006 07:37 PM | Link to this

I’ve been watching a 4BR/2.5 bath house with 2000 square feet over the past few months…In February they were asking 415K now they are down to 359K as of today! 4 months on the market and no takers!

By spectator

July 17, 2006 09:09 PM | Link to this

just a classic case of “the greater fool theory”. Whille PB desrves a premium, but lets get real. When schools suffer because of lack of teachers, the quality of life will suffer.

By spectator

July 17, 2006 09:09 PM | Link to this

just a classic case of “the greater fool theory”. While PB desrves a premium, but lets get real. When schools suffer because of lack of teachers, the quality of life will suffer.

By Florida O.J.

July 18, 2006 03:19 AM | Link to this

You all are the much greater fools because you don’t know how reasonable home prices are in So FL versus California. I was raised in the SF Bay Area and later I made several major killings on real property I owned in Brentwood in So. Cal. I don’t mind the more humid FL climate because the heat is a lot less intense for me here than there! You dig?

By fabumari

July 18, 2006 06:48 AM | Link to this

I lived in St. Petersburg for 15 years. I was just starting out and was able to buy a nice 3/2 home in a great area for $107,000 in 1990. I made a little over $35,000 a year and was so happy to have my first home. I had to move to Palm Beach County for family reasons, but since I was lucky enough to sell my home for over 3x’s what I paid for, I was able to move into another home. I was shocked I was able to get that much for my home. Good for me, but bad for our next generation. I know a lot of young people just starting out and they are not making much more than the $35,000 I made 15 years ago. It’s sad to see that a home is probably not in the foreseable future for them in the Tampa area - and especially in South Florida. I don’t care what anyone says about median salaries. The average, middle-class, 30-something is being squeezed out of the housing market. I guess they’re all going to have to raise there kids in townhomes - which aren’t cheap either.

By Ron G

July 18, 2006 10:56 AM | Link to this

Yo- - OJ— Taking a stab at RE here ? What a cutup !!!!

By Florida O.J.

July 18, 2006 12:55 PM | Link to this

Right on Ron. They tell me that a real blood bath is just around the corner and I’ll just lie in wait for that to happen and pick up something new!

By Jupiter Renter

July 18, 2006 04:13 PM | Link to this

PB county median price down year-over-year in June. http://www.ipre.com/trendg/images/paldays.PNG And,PB County sales off 40% with an 18 month supply on the market. http://www.ipre.com/trendg/images/palsld.PNG This is going to show up on the front page of the Post any day now. Fun reading for PB County Owner!

By Jupiter Owner/Investor

July 18, 2006 05:46 PM | Link to this

No big deal, so the appreciation rate has taken a brief respite and stalled after reaching 3 solid years of dizzying heights. Yes unsold inventory is building up, but importantly realized prices haven’t dropped off by very much (only about 5% versus year ago). So where is the drastic 50% price reduction in home prices you renters and doomsayers are waiting for? I’ll suffer a 5% loss in value anyday as long as it is on top of an already realized 300% gain. Please keep on renting from us you smarties as we are in it for the long term and appreciate the future profits.

By 30 something yuppie

July 18, 2006 06:04 PM | Link to this

Hey fabumari. Did you ever hear the saying “you can’t see the forest for the trees”. By your own admission you said you were “lucky” enough to sell your home purchased in 1990 for over 3X what you paid for it! Well it your case it definately was dumb luck!…but just imagine if you had INTENTIONALLY leveraged yourself back then and bought 3, 4or even 5 homes and rented them out to others who would pay off your mortgages for you. I bet you would now have enough to pass on to your own next generation lots of cash $$$ plus and the gift of wisdom! Hey don’t worry about us…we are not bumpkins doing just fine! No pain…no gain!~

By PBC OWNER

July 18, 2006 07:37 PM | Link to this

No need to panic for homeowners, prices are going up this fall. The stalkers out there are losing their own homes. I know one who will go from his Palace with a high mortgage on it to a jail cell. And the best part, he is a stupid realtor/broker who over invested last year on “flipping” properties. Lets all feel sorry for him - NOT!

ha ha ha !

By Miss Know It All

July 18, 2006 08:43 PM | Link to this

I know a realtor/broker who really has problems too. He will have more headaches with that mortgage on his home in Mirasol when his top producer - N.C. leaves his office. Rumor has it that his top producer - N.C. is looking for a new broker these days. Don’t think he will be using his real estate license much longer. Maybe he can use that pari-mutual license that he has in the “big house” to run “crap” games.

By dot

July 18, 2006 11:31 PM | Link to this

Some housing bubble reports out of Florida. “Midtown Miami, the massive mixed-use residential development is up for sale. Real estate broker Edie Laquer said they always planned to sell after construction started. But market watchers immediately questioned whether this is another example of a residential developer trying to limit risk at a time when the housing market has cooled.”

“‘This is another sign of where this market might be headed,’ said Jay Massirman,with real estate brokerage CB Richard Ellis in Miami. ‘It says to me that they’re worried about the market.’”

The St. Petersburg Times. “How long can a house fail to sell and still be called ‘Simply Irresistible?’ There may be no better illustration of the real estate glut than a 2,800-square-foot house, which debuted at $710,000 in December. The house’s price tag recently was cut to $675,000. But after more than 200 days on the market, the listing, and its signs, persist, raising doubts about the home’s compulsive appeal.”

“Delays are hitting a few of the region’s major condominium projects, but not every developer is blaming high construction costs. Nautico, what will become part of St. Petersburg’s ‘Aquaplex’ district, was supposed to have broken ground last March. The earliest ground will likely break now is March 2007, and it could be 2008 before anyone is living there, said Frank Maggio, CEO.”

“‘Long gone are the days when you could put up a circus tent, have a couple people juggling balls and some expensive hors d’oeuvres, and walk away with $20 million worth of presales,’ Maggio said. Nautico was expected to hit its presale threshold to begin building by this month, but he said potential homebuyer traffic is only a third of what was projected.”

“Nautico isn’t the only property affected. ‘Any project that requires presales is hindered,’ Maggio said. ‘I’m hearing that everywhere.’”

“Foreclosure paperwork began on 156 homes along the Treasure Coast last month. In St. Lucie County, 77 homes were in foreclosure proceedings in June, the most on the Treasure Coast. Martin County had 47 properties registered.”

“Jerry Mabus, president of the Realtors Association of St. Lucie County, said, ‘Some speculators came in with the intent of flipping, but now they are just walking away from them.’”

“Brad Hunter of Metrostudy, said the report is a reflection of the creative financing made available to those who over stretched themselves financially and bought a house in late 2005. ‘This upward trend of foreclosures is occurring because some people bought homes they had no business buying,’ Hunter said. ‘People that bought near the peak of the market on an adjustable rate (mortgage) are getting squeezed out of their homes now.’”

“Foreclosure filings in Palm Beach, Martin and St. Lucie counties jumped in June as rising mortgage costs and skyrocketing insurance rates combined to squeeze homeowners’ wallets. Palm Beach County also is notorious for overzealous homeowner associations, Jim Sahnger said. ‘In some cases, I have seen up to 35 percent of some properties being foreclosed on by the homeowner association,’ Sahnger said. ‘Many of them have pretty short fuses.’”

From Florida Today. “Holiday Builders has cut jobs, and Mercedes Homes indicated it is considering it, as Brevard County’s two largest homebuilders move to contain costs amid a slowing housing market.”

“Industry officials are bracing for an impact. ‘New construction for 2006 is leveling off from the boom in recent years,’ said Jade Bulecza, a spokeswoman for the Florida Home Builders Association in Tallahassee. ‘The real estate market is going to come in for a landing. It’s just a question of whether it’s going to be bumpy or soft.’”

By fabumari

July 19, 2006 06:52 AM | Link to this

Hey 30 something yuppie - Good for you - I hope you get a beautiful first home. You, sadly, are in the minority. Have you been reading the recent news about firemen, nurses, and teachers who cannot afford a home? All rewarding careers - no “bumpkins” there. Buying and renting properties is not the end all occupation for everyone. And selling my home for that much money was not dumb luck - it was the average price in my neighborhood - which gained an uprecendented markup of 200% in 2 years. But again, maybe that is luck - but scary. Many friends of mine who are in their early 30’s are still paying off student loans, trying to start a family, make car payments - all on $40,000 - $50,000 or so a year. They are finding that they are unable to get a “decent” home for the current median price range.They are not “bumkins.” All are well educated, hard working people - who are now being squeezed out of the American Dream. Count your blessings.

By rca

July 19, 2006 12:12 PM | Link to this

‘Trend Emerging Of Motivated And Realistic Sellers’

A trio of reports on the Florida housing bubble. The Motley Fool. “Crane-counting. That’s a new game that I play with my family as we drive through downtown Miami. There are so many high-rise condominium buildings sprouting up, most of them in inexplicable places far removed from the beaches and nightlife hubs, that the one who guesses the highest number of construction cranes always winds up winning.”

“Last week, I rented a home just two minutes from the entrance to Disney World. You know it’s not a good sign when a new development is trying to sell its second phase of new homes in a community where the number of ‘For Sale’ signs and real estate agent-led open houses is exceeding the number of houses that were delivered just months ago.”

“Just down the street from the Kissimmee build-out, run-down motor lodges that failed miserably as hotels are trying to reposition themselves as condo hotels. The problem is that they’re trying to sell studio efficiencies for $125,000 or more in areas that struggled to fill rooms for $30-$40 a night in the past.”

“Did I mention that my wife and I paid less than that for a cozy three-bedroom villa with room to spare in a lively resort community just a few years ago?”

The Naples Insider. “To me the most notable event in the local real estate market is the number of of misguided sellers with outrageous pricing, and the number of listing agents accepting such listings as the normal course of doing business. Within most communities, you can have very similar properties with list prices up to 25% apart. Sure, such things as the view and other differentiators can account for some of the price difference, but not the extent of most differences.”

“For a condo with the exact same floor plan, the difference in list price between the low and the high end is 33%. The middle and highest priced units would need gold pouring out of the faucets to have a buyer consider a purchase.”

“The original list prices were often greater than highest price ever paid within the community. A belief by sellers and their listing agents that prices were escalating, while in fact they were decreasing.”

“The number of homes available for sale during July 2006 is in the 9,000 range. This is double the amount available for sale in previous years. and would suggest that Naples will be a buyers market for many years to come. A significant number of those homes are priced out of the market and can not really be taken seriously as a home, that is in good faith for sale.”

“There has been a trend emerging of motivated and realistic sellers. Some sellers have reduced pricing from an outrageous amount to just an absurd price. But others have reduced prices to year 2004 levels. A major reduction off of peak selling prices.”

“Let’s examine the group of homes that closed during the 10 day period ending July 18, 2006. Nearly all homes in this group had significant reductions off of the original list price, and some had significant reductions off the most recent asking price. In most cases it is probably a combination of the buyer getting a good deal, and the seller coming off a ridiculous asking price.”

The Bradenton Herald. “Few workers make the six-figure income needed to afford a median-priced home in Manatee and Sarasota counties, an affordable-housing coalition said Tuesday. A person needs to make at least $109,248 a year to afford a home at December’s median sales price of $322,700, the Florida Housing Coalition said.”

“Even construction managers, the two-county region’s top-paying occupation in the coalition report, don’t make enough to be able to completely mortgage a median-priced home.”

By CLASS NOT MASS

July 19, 2006 04:56 PM | Link to this

I think all of you existing Florida residents are suffering from inbreed tunnel vision or are completely missing the point. It’s too bad that Florida wages are so miserably low and locals are being priced out of the market but remember that by comparison to many, many other sunny destination resort-oriented decent communities with golf, tennis, beaches and boating etc. in towns such as Santa Monica, CA, Maui Hawaii, Lake Tahoe, Scottsdale etc. Florida is a virtual bargain! And no state income tx to boot??Wow! I know you locals do not want to hear that but with an average home price of under $350,000, that’s really very cheap at less than half of many areas. The professional people who are planning on moving to PBC, Martin or St. Lucie counties already have ample funds, pay cash and salary level is irrelevant. They’ve already made their money elsewhere. So count your blessings that you are already here or else move on out as many counties upgrade with new construction and luxury developments starting at $500M+ A word of caution though, affluent boomers want luxury communities offering many amenities including privacy, so the outlook for overbuilt hi-rise apt./condos is bleak indeed! Don’t bother giving these folks comparisons to Ohio,NC, TX or ARK etc….sure it’s cheaper there but we are not talking about fixed income retirees.. but well-heeled and savvy fun-seekers. So scoop up any bargains while you still can or else move on! I am not a realtor nor a developer nor an investor, I just appreciate the long-awaited transition away from squalor to splendor!

By freeloading roommate

July 19, 2006 07:18 PM | Link to this

” I am not a realtor nor a developer nor an investor”

No you are a bagholder.

By rca

July 19, 2006 08:51 PM | Link to this

‘Trend Emerging Of Motivated And Realistic Sellers’

A trio of reports on the Florida housing bubble. The Motley Fool. “Crane-counting. That’s a new game that I play with my family as we drive through downtown Miami. There are so many high-rise condominium buildings sprouting up, most of them in inexplicable places far removed from the beaches and nightlife hubs, that the one who guesses the highest number of construction cranes always winds up winning.”

“Last week, I rented a home just two minutes from the entrance to Disney World. You know it’s not a good sign when a new development is trying to sell its second phase of new homes in a community where the number of ‘For Sale’ signs and real estate agent-led open houses is exceeding the number of houses that were delivered just months ago.”

“Just down the street from the Kissimmee build-out, run-down motor lodges that failed miserably as hotels are trying to reposition themselves as condo hotels. The problem is that they’re trying to sell studio efficiencies for $125,000 or more in areas that struggled to fill rooms for $30-$40 a night in the past.”

“Did I mention that my wife and I paid less than that for a cozy three-bedroom villa with room to spare in a lively resort community just a few years ago?”

The Naples Insider. “To me the most notable event in the local real estate market is the number of of misguided sellers with outrageous pricing, and the number of listing agents accepting such listings as the normal course of doing business. Within most communities, you can have very similar properties with list prices up to 25% apart. Sure, such things as the view and other differentiators can account for some of the price difference, but not the extent of most differences.”

“For a condo with the exact same floor plan, the difference in list price between the low and the high end is 33%. The middle and highest priced units would need gold pouring out of the faucets to have a buyer consider a purchase.”

“The original list prices were often greater than highest price ever paid within the community. A belief by sellers and their listing agents that prices were escalating, while in fact they were decreasing.”

“The number of homes available for sale during July 2006 is in the 9,000 range. This is double the amount available for sale in previous years. and would suggest that Naples will be a buyers market for many years to come. A significant number of those homes are priced out of the market and can not really be taken seriously as a home, that is in good faith for sale.”

“There has been a trend emerging of motivated and realistic sellers. Some sellers have reduced pricing from an outrageous amount to just an absurd price. But others have reduced prices to year 2004 levels. A major reduction off of peak selling prices.”

“Let’s examine the group of homes that closed during the 10 day period ending July 18, 2006. Nearly all homes in this group had significant reductions off of the original list price, and some had significant reductions off the most recent asking price. In most cases it is probably a combination of the buyer getting a good deal, and the seller coming off a ridiculous asking price.”

The Bradenton Herald. “Few workers make the six-figure income needed to afford a median-priced home in Manatee and Sarasota counties, an affordable-housing coalition said Tuesday. A person needs to make at least $109,248 a year to afford a home at December’s median sales price of $322,700, the Florida Housing Coalition said.”

“Even construction managers, the two-county region’s top-paying occupation in the coalition report, don’t make enough to be able to completely mortgage a median-priced home.”

By TheHeatWon

July 20, 2006 09:49 AM | Link to this

You can rent a luxurious $350K condo in S. Florida for around $1200/month. Affordable rent for $40-50K/yr income, can still save plenty of $$ for future real estate purchase. Real good chance you’re not even covering your landlord’s expenses, especially if he bought the place within the last 3 years. If you make less than $50K/yr here you can’t really afford to buy now—either rent or make more income. You pay for the privilege of living in this tropical paradise, but it’s worth it and it’s attainable.

By Moving Out Of Flroida

July 20, 2006 03:30 PM | Link to this

I am moving out of florida. Housing prices in Palm Beach County are so high that 90 percent of the workforce can’t afford to buy the median-priced home.

The median price of a single-family home for the first quarter of this year was $392,900. The median rent in Palm Beach County is now $1,100 a month.

The median income for all Palm Beach County occupations is just $27,851.

By Moving Out Of Flroida

July 20, 2006 04:01 PM | Link to this

I am moving out of florida. Housing prices in Palm Beach County are so high that 90 percent of the workforce can’t afford to buy the median-priced home.

The median price of a single-family home for the first quarter of this year was $392,900. The median rent in Palm Beach County is now $1,100 a month.

The median income for all Palm Beach County occupations is just $27,851.

By RE analyst

July 21, 2006 10:20 AM | Link to this

Health conscious Boomers look askance at FL retirement citing among other reasons very high risk of skin cancer:

Overview: Skin Cancer - Melanoma Can Melanoma Skin Cancer Be Prevented?

The best way to lower the risk of melanoma is to avoid too much exposure to the sun and other sources of UV light. The ideas below can help you prevent skin cancer.(see American Cancer Society site)

Also dislike almost year round need for air-conditioning, uncomfortable humidity/temps for outdoor activities.

By Stuck

July 21, 2006 01:16 PM | Link to this

It’s nice investors and homeowners made money selling their homes. I think homes should appreciate in value. However, unfornately, for the people styling your hair, social workers, people putting out your fires, and teaching in public school, officers putting their lives in jeapardy, recent college grades earning $35 for “middle class” jobs. We are the citizens that make up a community. Are we supposed to take on “suicide mortgages” just to buy a home? Face it. Homeownership is no longer the American Dream. The rich keep getting rich, and the poor will stay poor. For the Middle class….well…what middle class?

By rca

July 21, 2006 08:47 PM | Link to this

heres at thought. lets say your parents buy a home 500,000 home with any various of loans and the equity hasnt kicked in and your parents pass away. the price of life insurance isnt cheap and do anyone think that these kids can pay for all of the debt their parents home, including keep a home. we dont even invest in our future anymore. completely selfish and greed. people dont realize that the kids are going to suffer, if you dont invest in them. who is going to be responsible of the floppers properties? poor grandma better check her son’s life insurance. imagine, the life insurance that has to be paid to cover all this mess.
trouble in 07!

By desperatetosell

July 29, 2006 01:31 PM | Link to this

With two median incomes living in Boca we are tired of working like dogs to survive. That is why we are trying to get out before the bubble bursts or we go broke. We have a 3 bdrm in Boca for 298,000 any suggestion for getting more traffic at our open houses?

By TH

July 29, 2006 02:50 PM | Link to this

Lower the price..plain and simple The bubble is already starting to burst!

By RE

July 29, 2006 03:19 PM | Link to this

Check MLS listings online in your $ range - Boca Raton alone quick check shows 60 3 Brs in rng.(Hundresds more in surrounding areas) Check pictures,descriptions,prices, cruise by and look. If you think your price still right compared to what sells NEXT (FORGET PAST) try hanging on if you can. If not, you know the answer yourself. Good Luck

By Musical Open Houses ?

July 29, 2006 03:23 PM | Link to this

Looks like a lot of Open House visitors will be other sellers checking out the competition.

By desperatetosell

July 29, 2006 03:38 PM | Link to this

RE-

Thanks for the advice. We have dropped our price 3 times in two months. We know we have a gem of a house in beuatiful condition. We just need that right buyer who can appreciate it.

By good timing

July 29, 2006 08:12 PM | Link to this

Up until the beginning of the year owned several investment properties, including a beautiful home in West Lake Worth that appreciated more then $200K in a couple of years. Right about that time I went through a divorce which forced the sale of most of my properties, minus one investment property that turned into my current home. Now looking back, holy smoke did I get lucky that I divorced during that time. In the end the divorce settlement compared to what my investments would be doing now does not seem like such a bad deal. My current investment home turned permanent post divorce primary home has other condo sitting on the market for months, with prices continuing to drop. The good thing is that I bought in at pre-inflated prices. Now it is just time to wait it out….. eventually prices will stabalize and start heading back up again….at least once everybody that was desperate enought to sell has sold.

By good timing

July 29, 2006 08:14 PM | Link to this

should have said ..”beginning of last year”. So much for my proof reading skills.

By Hef

July 30, 2006 09:05 AM | Link to this

Re: Desparatetosell

Go back to Haiti or Lake Worth.

By Steve

July 30, 2006 04:13 PM | Link to this

Hey Huf, you really should get yourself checked out. Something ain’t right.