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Yea, it is very different all of a sudden. About 4 years ago is when I found out people were locking in a 2-3 year lease.
You'll probably find that small mom & pop investors who won't be selling anytime soon will be more interested in doing a 24 month lease with a good stable tenant than large companies (apt building communities).
Maybe it has something to do with rules/taxes in Florida, but we were told (as landlords) not to do more than 1 year leases.
There is a case to made for renting. No repairs or updates and if your a very shrewd investor you may do just as well or better than a home owner.
But, I honestly do not see housing prices going down and by down I mean 20%. Will we see a 5 or10 % drop? Probably but it will go back up again. With the price of building materials and wages all up and everything else why would housing be one of the only things to drop.
People in 2008 said the same thing, that housing prices won't decline massively.
People in 2008 said the same thing, that housing prices won't decline massively.
But that was the only time in history that kind of decline happened and none of those reasons exist today. You have to come up with a better argument than "it happened in 2008" to make a case. You can find "people said" anything to support your bias if you want. There are always people predicting almost anything on both sides all the time.
But that was the only time in history that kind of decline happened and none of those reasons exist today. You have to come up with a better argument than "it happened in 2008" to make a case. You can find "people said" anything to support your bias if you want. There are always people predicting almost anything on both sides all the time.
They are declining right now in Florida. The bubble is bursting.
"A lot of people have become scared out of the market, waiting for a crash," Blanton said. "I do not believe we're going to see any reversal in values, I don't see that coming."
Sandy Blanton with Team Sandy Blanton Realty says in Florida's housing market, prices have not slowed down and neither have sales.
"A lot of people have become scared out of the market, waiting for a crash," Blanton said. "I do not believe we're going to see any reversal in values, I don't see that coming."
Sandy Blanton with Team Sandy Blanton Realty says in Florida's housing market, prices have not slowed down and neither have sales.
They are declining right now in Florida. The bubble is bursting.
Really? Where exactly in Florida are prices declining and the bubble "bursting"?
Florida is a big state, 800 miles from one end to the other and over and over 65,000 square miles, so I'm sure it's possible that prices may have peaked and are falling in some small area of the state. But certainly not South Florida where I'm located. And not in Tampa where I believe you are or were located. In fact, here's an article from Yahoo FInance from a few weeks ago:
One of the hottest housing markets in the Southeastern U.S. has been quietly thriving in the shadow of its brighter, louder, and more glamorous sister city Miami.
Tampa, Florida, was rated 2022’s hottest housing market by Zillow (Z, ZG), beating out other Florida cities as well as other major metros like Phoenix and Austin, Texas. The city outranked other markets due to its number of potential buyers, scarcity of homes, home sales, and flourishing job market. Tampa's home values are also expected to grow at their fastest pace this year.
You really expect a realtor to say otherwise? It's their bread and butter.
A realtor didn’t say anything. The links are hard facts and data. And realtors are almost always honest when the market is slowing down. Lying would not change the real estate market.
The OP is quite right. Many housing markets are suffering severe over-valuation. And valuation is at the epicenter of what is wrong with so much to do with housing—and other asset classes. There seems to be a blindness, or ossification when it comes to excessively high valuations. Investors become unable to act for all sorts of reasons that behavioural scientists put down to biases like regret and the fear of losing out, short term focus, loss bias, the belief that recent trends are likely to continue, media reports, and the list goes on. The problem of over-valuations is largely one of behavior. Being better informed avoids these behavioral pitfalls.
Buying into an over-bought market is not a strategy for building wealth. It can, in fact, lead to lingering financial complications for the unwary. Competing with institutional investors is the worst thing a buyer can do. Wall Street doesn’t care what it pays, because in all likelihood it is re-packaging those investments and selling on the risk, only this time it’s not mortgages, but bricks and mortar.
A sensible strategy is to sit on the fence, resist temptation, and educate yourself. Look for signs of distress and other dynamics in the market; increasing sales, increasing inventory, increasing number of price reductions, widening list-to-sales spread, increasing DOMs (days on market), median and repeat sales home price indices, increasing non-performing loans, defaults, foreclosures, mortgage rates, inflation, affordability index and so on. RE cycles move slowly, so be patient.
Awesome post. YOU DA MAN! Or girl?
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