Housing Bubble Popped but why aren't the prices reflecting it? (Tampa: work, new house)

[firemed]

Huge inventories of homes are for sale in South Florida. Yet people keep thinking this will change next year. The number of houses and condos on the market is so large that it would take almost three years to sell them all in Palm Beach and 31 months in Broward, if the pace of recent sales continues.” I must be missing something in all this. Are people from the north that dumb or is it just me ? Yeah we have a few that are stuck and will say anything to get out from under a loss. But lets get real people !!

Troubled home loans increase as interest rates rise on adjustable mortages: South Florida Sun-Sentinel

[info please]

Most people don't stay in there homes for the course of there loan. So a point to some people it won't matter . With all the forclosers next year comming there will be more homes on the market. I don't feel this is over yet.

[kort677]

Originally Posted by LingLing

I am trying to figure this one out. If I can find a property with a reasonable price now and get a rate of 6.5% 30 yr fix. I will put 20% down to get the best rate. Then I put 80% of cash in the bank (just an example. I don't have that much cash yet). If interest rate moves up to 15%, do you think I can use the interest made to pay the principal and interest for the house and still get a tax break? I am sure I didn't think this through. So in my case, I have 5.5% 30 yr fix. I shouldn't pay pack more than necessary to prepare for the rate increase. Welcome the discussion.

yes, you'll be taxed on the interest mad and deduct the interest paid out

[linmm4]

I live in a great area of Port st Lucie,Fl and I must say I have been trying to sell my home for six months now and it is very hard. The selling price about a year ago would of been $275000 but now it is only $230000 with a pool. Now that is a really low price. 3/2/2/ pool home for that price is great. All new everything inside. How can that be bad AND the taxes are low Now a new home with no pool for $240000 have a high tax and no one thinks of that. Just the price to purchase ONLY. You ust look at the BIG icture. Rentals can be gotten for $850-$1800 per month depending on what you want. It is a safer area tha West Palm Beach or Boca.?

[slcuervo]

Woooaww, 57 pages-long thread. Sorry guys, but I'm not going to read it all . What I can tell you from my own experience (I live in Madrid, where there has been a house bubble since 1995 and we have had no burst so far, but prices are not rising anymore) is that the first step after the burst is a tremendous increase in the time needed to sell property.

In Madrid (SPAIN) people used to buy a house, keep it empty for a year, and then sell it (in a couple of months) for 15-20% more than the buying price. Today, not only the prices don't go up anymore, but it takes more than a year to sell your property.

From what I've read, the situation in Florida is more or less the same, so the pieces of advice I've read here (rent first, and then wait and see) are very sensible. Chances are that prices will go down progressively during the next 5 years, so you'd better be patient!

[pianogal]

Originally Posted by linmm4

I live in a great area of Port st Lucie,Fl and I must say I have been trying to sell my home for six months now and it is very hard. The selling price about a year ago would of been $275000 but now it is only $230000 with a pool. Now that is a really low price. 3/2/2/ pool home for that price is great. All new everything inside. How can that be bad AND the taxes are low Now a new home with no pool for $240000 have a high tax and no one thinks of that. Just the price to purchase ONLY. You ust look at the BIG icture. Rentals can be gotten for $850-$1800 per month depending on what you want. It is a safer area tha West Palm Beach or Boca.?

The taxes will change to reflect the value of the home when you sell. They are low for you due to SOH (Save Our Homes). We were paying 1300.00 a year on our Winter Park home - the new buyer is paying 3500.00. Big difference. That is one of the problems - even if buyers can afford the home - they can't afford the taxes. Our taxes and insurance are almost as much as our P and I!

[JimKing]

Come on now, Port Saint Lucie has a median income of $50,000. Houses should be going for $150,000 or less, like they have historically.

The very fact that someone is surprised that their house in PSL is not selling fast and is a 'great deal' at $230,000 shows how nuts things got.

And the last post is dead on, prices will decrease over the next 5 years. It won't happen all at once ....but it will happen and they will go way, way down.

[nychiefsfan]

I dabble a little in Paint Shop Pro, so I came up with this:

[nychiefsfan]

Originally Posted by info please

Most people don't stay in there homes for the course of there loan. So a point to some people it won't matter . With all the forclosers next year comming there will be more homes on the market. I don't feel this is over yet.

I totally agree with you. There may be some spikes in sales, but this slump is here for a long time, IMO.

[nychiefsfan]

Originally Posted by JimKing

Come on now, Port Saint Lucie has a median income of $50,000. Houses should be going for $150,000 or less, like they have historically.

The very fact that someone is surprised that their house in PSL is not selling fast and is a 'great deal' at $230,000 shows how nuts things got.

And the last post is dead on, prices will decrease over the next 5 years. It won't happen all at once ....but it will happen and they will go way, way down.

Yanno what's messed up? I feel poor when our combined income is $95k. My wife and I both have Master's degrees, but we can't make over $100k combined in Tampa. Florida salaries aren't that great, but I still love Florida. I just wish I didn't feel so poor.