[LuisSuarez]

I am seeing a lot of price reductions in the last few months.

Florida could be headed for another housing slide - The Washington Post

[perry335654]

Originally Posted by LuisSuarez

I am seeing a lot of price reductions in the last few months.

Florida could be headed for another housing slide - The Washington Post

This would probably be more applicable to the Florida Forum !!

[Happiness-is-close]

The good thing is that ever since the Great Recession, mortgages haven't been given to people just because they have a pulse. The people with mortgages right now can afford them (for the most part).

[LuisSuarez]

Originally Posted by perry335654

This would probably be more applicable to the Florida Forum !!

Nope I am looking to buy in Miami. I am getting reductions every day at present.

[ace587]

good thing I sold my 2nd house.

[bale002]

It seems in this current cycle that prices peaked sometime in 2013-2014, then leveled off.

This time around the fuel has been more cash than credit, so any slide will probably not be a dramatic crash as in 2010-2011 (in Miami, not 2006-2009 as in the rest of Florida and many other places in the US).

However, I did hear one disturbing anecdote.

Brazilians have been one of the major groups of foreign buyers in recent years. Apparently, according to what someone has told me, many of them are paying their property carrying costs based on income in reál. The Brazilian economy is currently in recession and the reál has fallen sharply against the dollar. If that is the case, then there may be distress in making payments for any mortgages, maintenance expenses, condo fees, insurance, and property taxes.


I don't know if that is true or how widespread it is among other groups. One would think that people would have enough sense to match their expenses with income in the same currency, or at least they would be sophisticated at hedging. But many aren't.


Most oil-exporting countries are in or near recession right now, including Russia, Mexico and Canada, and in China growth is slowing, all countries which supply groups of potential cash buyers in Miami.

So I am not surprised to hear that prices may be sliding, but probably off unrealistic peaks. And there may be room for further erosion.

We'll see.

Good Luck!

[1insider]

The conditions that are described in that article (mass purchases of condos by private equity and hordes of foreign buyers) are peculiar to southeast Florida. Nothing even close to that scenario exists in my area, the Space Coast. Anyone seeing this outside the SE coastal market?

[gypsychic]

Originally Posted by 1insider

The conditions that are described in that article (mass purchases of condos by private equity and hordes of foreign buyers) are peculiar to southeast Florida. Nothing even close to that scenario exists in my area, the Space Coast. Anyone seeing this outside the SE coastal market?

Yeah, not even close anywhere in the whole expanded Tampa Bay Area - in fact, it's like a mini-boom over here.

[chaseo1]

Originally Posted by gypsychic

Yeah, not even close anywhere in the whole expanded Tampa Bay Area - in fact, it's like a mini-boom over here.

Not a good thing, especially when wages have remained stagnant. This is precisely what the article was speaking on. How can home prices increase 10% in a few years and wages increase 0.5% and expect people to keep buying at current rate?

What really screws everyone is these foreign "investors" and house flippers. Why do we need another 100 acres of pasture converted into a cookie cutter sub-division when there is still plenty of prime land to develop near city cores.

Originally Posted by bale002

It seems in this current cycle that prices peaked sometime in 2013-2014, then leveled off.

!

Actually was starting to level off in 4Q 2014 then in January 2015 BOOM, people started scooping them up again because everyone thought the rates were gonna rise.

[Restrain]

Prices in SWF are going up. Seeing 12% YTY increases now in non-distressed sales as the REOs have pretty much worked through the system, declining inventory levels of existing homes.