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Old 01-01-2019, 10:22 AM
 
Location: Malaga Spain & Lady Lake, Florida
315 posts, read 61,461 times
Reputation: 332

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I am currently watching the property market very closely, 2 years ago prices were rising by the day and I jumped in buying my first house in Florida unseen and thankfully landed lucky, I then bought another last year after finding I liked the area, my first house is now rented and the second house I use for myself.

I was going to invest some more money in Spain where I live for most of the year but have now noticed a change of direction in the local market in Florida and have turned my attention to the possibility of a recession on the way and a possible buying opportunity.

Standard 3 bed 2 bath houses that were being sold in a matter of weeks several months ago are now on the market for a few months and prices are being reduced by the week in many cases, flippers look to be hurting most with houses theyíve remodeled sticking, resulting in them reducing prices to try to find a buyer, I believe these flippers will be paying finance while their investment sits empty so this isnít good for them.

Does anyone else think the tides already turned in the property market ?
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Old 01-01-2019, 10:49 AM
 
10,515 posts, read 6,820,553 times
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It depends on the market in the Fort Myers area starter home prices have doubled in the last 3 years and all the homes that were starting at $50K are gone and now worth $100K.

Rental prices have almost doubled. I knew of someone who was renting a small 3/1 in the Fort Myers area for $675 a month, that LL sold and it would rent for about $1100 3 years later, because a small 2/1 in the area rents for $950 now.

I also knew of half a duplex 2/2 in Cape Coral 1200 square feet with 2 car garage renting for $850 on a canal in the town center that has to be worth at least $1300 or more now.

Flippers have nothing to do with it, they buy cheaper homes that are falling apart or need a lot of updating and throw money at them and it's a gamble especially when the market is steady and they can't guarantee to make huge profits.



In the Fort Lauderdale area condo prices are sluggish and I don't think they have gone up much in the past 10 years certainly not as much as home prices have gone up in other areas.

I think the market is cooling and that's good to stabilize it. I saw listings for a $600 older home that was rehabbed and someone was asking $130K for it, which is ridiculous and they had to take it off the market.

So the market is cooling and maybe going up 5% or less and not the 30% it was going up a few years for the correction after the housing crash.
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Old 01-01-2019, 11:03 AM
 
1,178 posts, read 386,645 times
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I think it is upon us! Yes to the OP. Nationally.
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Old 01-01-2019, 11:07 AM
 
10,515 posts, read 6,820,553 times
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The bubble has not burst, it has stopped expanding which is good, if it fills too quickly it will burst.

The housing crisis was not a bubble it was Wall Street and bank fraud.
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Old 01-01-2019, 11:13 AM
 
Location: Malaga Spain & Lady Lake, Florida
315 posts, read 61,461 times
Reputation: 332
Quote:
Originally Posted by LifeIsGood01 View Post
It depends on the market in the Fort Myers area starter home prices have doubled in the last 3 years and all the homes that were starting at $50K are gone and now worth $100K.

Rental prices have almost doubled. I knew of someone who was renting a small 3/1 in the Fort Myers area for $675 a month, that LL sold and it would rent for about $1100 3 years later, because a small 2/1 in the area rents for $950 now.

I also knew of half a duplex 2/2 in Cape Coral 1200 square feet with 2 car garage renting for $850 on a canal in the town center that has to be worth at least $1300 or more now.

Flippers have nothing to do with it, they buy cheaper homes that are falling apart or need a lot of updating and throw money at them and it's a gamble especially when the market is steady and they can't guarantee to make huge profits.



In the Fort Lauderdale area condo prices are sluggish and I don't think they have gone up much in the past 10 years certainly not as much as home prices have gone up in other areas.

I think the market is cooling and that's good to stabilize it. I saw listings for a $600 older home that was rehabbed and someone was asking $130K for it, which is ridiculous and they had to take it off the market.

So the market is cooling and maybe going up 5% or less and not the 30% it was going up a few years for the correction after the housing crash.
Each area will be different, Iím only looking in lake county Florida at 3+2 houses with garages with kerb appeal that donít need any major updates, purely to rent out, I watched the prices rocket over the last 3 years, from my research over the last couple of weeks things have stopped going up and are actually dropping in price now and still not selling.
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Old 01-01-2019, 11:37 AM
 
10,515 posts, read 6,820,553 times
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Quote:
Originally Posted by britinspain View Post
Each area will be different, Iím only looking in lake county Florida at 3+2 houses with garages with kerb appeal that donít need any major updates, purely to rent out, I watched the prices rocket over the last 3 years, from my research over the last couple of weeks things have stopped going up and are actually dropping in price now and still not selling.
curb appeal...
and Yes, they went up so fast, in that area they probably went up as fast as where I am in Lee county. Now with interest rates rising people are getting priced out of the market. Prices are dropping because the boom where sellers could keep raising prices are over. When rental prices catch up to mortgage costs and it's cheaper to rent that stabilizes the housing market.

Also right now is a bad time for buyers in Florida, their chance to qualify for the Homestead exemption is over for the year which is where the main housing market is. Prices may stay flat for a while but they will continue to rise which is healthy for the housing market. When you start to see a bunch of Foreclosures that's when it's too late and you know the crooked banks and Wall Street have come up with a new scheme to cheat the country.
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Old 01-01-2019, 11:39 AM
 
Location: Malaga Spain & Lady Lake, Florida
315 posts, read 61,461 times
Reputation: 332
Quote:
Originally Posted by LifeIsGood01 View Post
The bubble has not burst, it has stopped expanding which is good, if it fills too quickly it will burst.

The housing crisis was not a bubble it was Wall Street and bank fraud.
The last drop was caused by banks refusing or unable to finance property purchases, they had their own issues but house prices dropped for lack of funding in the market and investors scared of buying, those that did step in at the bottom and buy again have made a very tidy profit.

From the data I’ve seen people are not buying, be it job security, interest rate rises or political uncertainty, sales appear to be drying up at least in my sample market but I suspect nationally.
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Old 01-01-2019, 11:46 AM
 
Location: Malaga Spain & Lady Lake, Florida
315 posts, read 61,461 times
Reputation: 332
Quote:
Originally Posted by LifeIsGood01 View Post
curb appeal...
and Yes, they went up so fast, in that area they probably went up as fast as where I am in Lee county. Now with interest rates rising people are getting priced out of the market. Prices are dropping because the boom where sellers could keep raising prices are over. When rental prices catch up to mortgage costs and it's cheaper to rent that stabilizes the housing market.

Also right now is a bad time for buyers in Florida, their chance to qualify for the Homestead exemption is over for the year which is where the main housing market is. Prices may stay flat for a while but they will continue to rise which is healthy for the housing market. When you start to see a bunch of Foreclosures that's when it's too late and you know the crooked banks and Wall Street have come up with a new scheme to cheat the country.
Iím English so itís kerb appeal to me

Interesting you mentioned foreclosures, Iíve also seen a rise in those and have never been to an auction but I am planning to go along in the next few weeks to the county clerks auction in Tavares, they have some houses similar to the the ones Iím interested in, Some are being sold being part of an estate but many listed are sold for unpaid loans, like you say an indicator of market forces.
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Old 01-01-2019, 12:37 PM
 
10,515 posts, read 6,820,553 times
Reputation: 11156
Quote:
Originally Posted by britinspain View Post
The last drop was caused by banks refusing or unable to finance property purchases, they had their own issues but house prices dropped for lack of funding in the market and investors scared of buying, those that did step in at the bottom and buy again have made a very tidy profit.

From the data Iíve seen people are not buying, be it job security, interest rate rises or political uncertainty, sales appear to be drying up at least in my sample market but I suspect nationally.
Wrong the last housing crisis and housing collapse was because banks lent money to anyone even if they were unqualified and could not pay the mortgage, they did not require proof and then fraudulently sold the loans as stable investments on Wall Street.

But yes the US housing market has slowed down due to the fact that prices rose too high and people are afraid to buy a home that may not be worth what they pay or may drop in value. Homes that are priced right are still selling.

The home next to mine just closed in Mid December, but it was priced right and the seller did have to make some repairs such as tenting the whole home and spraying for termites which the renter told me the house had. I bought my home from the same owner that sold the house next door and he also bought the home on the other side of me cheap because it was in bad shape and he's working on fixing it and selling it by owner.
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Old 01-01-2019, 12:40 PM
 
10,515 posts, read 6,820,553 times
Reputation: 11156
Quote:
Originally Posted by britinspain View Post
Iím English so itís kerb appeal to me

Interesting you mentioned foreclosures, Iíve also seen a rise in those and have never been to an auction but I am planning to go along in the next few weeks to the county clerks auction in Tavares, they have some houses similar to the the ones Iím interested in, Some are being sold being part of an estate but many listed are sold for unpaid loans, like you say an indicator of market forces.
I haven't seen any foreclosures in my area. They have all been bought years ago by investors and are being rented out.

The guy who sold me my home and just sold the home to the right of me and is working to sell the home to the left of me seems to be leaving the landlord market while he can make a great profit on his homes. I got really lucky and bought at the perfect time and in about 3 years my home price has doubled on my starter home.
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