Over 30% of homes in Florida being scooped by investors (Palm Beach: sales, HOA)

[pslhomie]

Is this a "Jersey thing" (used to live there)? Let's call peace all the way around. The bot's don't like people getting snippy or using salty language here. And yes it can be entertaining at times LOL

[JERSEY MAN]

I think it's the other way around, no mirrors in your house. I post something about real estate that you don't agree with and you have the gall to question why I post on an open internet forum. I've been coming to this area for over 30 years. I find it pathetic that you as a real estate agent are mad at someone who doesn't agree with the notion of real estate is great. Did you go back and read 6 years of posts.. Don't flatter yourself, No i didn't. BUT I have read it almost everyday for 6 years. OK PSLhomie, I'm done going back and forth.

[wireyourworld]

Like I said its nothing new for anyone to take advantage and buy low to sell later or rent out. I'd be doing it myself if I had the funds. That's what investing is. Florida is popular because of the weather. Unless something changes it will always be a place where investors watch for opportunities.

Yes there is a shadow inventory by IMO banks do not want to flood the market and cause themselves to get less for a foreclosure, they will feed them out as seems prudent for them. Its to their advantage to get a higher price.

And its not news. The shadow inventory has been a known issue for 2-3 years now.

[pslhomie]

Just trying to promote peace and harmony. I have been on both ends of it and got banned for a while for sticking up for myself so just remember the golden spy is watching LOL (may have said 2 much)

[G711]

day, 10:02 AM
pslhomie
Senior Member
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Join Date: Dec 2011
437 posts, read 136,557 times
Reputation: 53

Well I would have to think that a lot of those houses will be sold to flippers and will not affect those who want a move in ready home. Personally I would never buy from a flipper given what I see of them on T.V. It's bad enough that builders take every shortcut immaginable but flippers are even worse.

Pslhomie really sounds like you are trying to promote peace or disrupt it!!!
Did you ever think that maybe some of the people reading this forum could possibly be Builders or worse flippers maybe both. what profession are you in????

[JohnVosilla]

Originally Posted by JERSEY MAN

BUT if people listened to you and bought in 2008,09,10 and 11 they would be underwater. Please contribute BOTH sides of the story, not only the positive ones.

Most of central and southern FL bottomed by Spring of 2009. Many areas north of the I-4 corridor a year later.. Many who bought in 2009-11 have already made significant gains by now

[pslhomie]

I am a used car salesman. Call BR549 for a good deal. Ask for Junior. Heeeee HAAAAWWW!!!

[JERSEY MAN]

Originally Posted by JohnVosilla

Most of central and southern FL bottomed by Spring of 2009. Many areas north of the I-4 corridor a year later.. Many who bought in 2009-11 have already made significant gains by now

John, I didn't see it in Port St. Lucie stats. This article was from May 2011. And I've been involved in transactions. Here's a link, Here's the 20 year price increase/decrease list for PSL[SIZE=3]Annual Home Price Appreciation Rates
1983 -2.58%
1984 10.76%
1985 -8.89%
1986 5.18%
1987 3.38%
1988 7.27%
1989 7.35%
1990 0.88%
1991 2.74%
1992 -0.06%
1993 1.54%
1994 -3.51%
1995 1.23%
1996 0.80%
1997 2.76%
1998 3.74%
1999 3.07%
2000 4.87%
2001 11.52%
2002 13.57%
2003 20.34%
2004 24.41%
2005 27.57%
2006 0.67%
2007 -17.28%
2008 -26.69%
2009 -14.58%
2010 -1.62%
2011 -3.16%
2012 -0.97%[/SIZE]

Ten cities where property prices fell by up to 69% in FIVE YEARS



By Daily Mail Reporter
UPDATED:17:32 EST, 11 May 201113
View
comments


Homeowners in ten cities across America have seen the value of their properties drop by up to 69 per cent in just five years as prices continue to plummet.
The news comes just days after real estate data firm Zillow announced home values fell by three per cent in the last quarter, the biggest decline since the recession.
Prices were hardest hit in Merced, California, where the average value of a home has fallen from $343, 740 to $105,110 - a drop of 69.4 per cent - since the height of the real estate bubble in 2005.

Hardest-hit: The average value of a house in the Californian city of Merced dropped by 69.4 per cent from its peak at the height of the housing bubble

All but one of the cities in the top ten, compiled by Zillow for ABC News, are in California and Florida, where housing prices soared the most at the height of the real estate bubble.
Merced was closely followed by Stockton, also in California, where the average value fell dramatically from its March 2006 peak of $409,773 to $148,231 today - a 63.8 per cent drop.
It has affected highly-priced and more modest neighbourhoods alike, from Vallejo, California, where at their peak prices were $472,819, to Melbourne, Florida, where values have fallen 56.7 per cent from $232,732.

Enlarge Decline: This graph shows how house prices have fallen dramatically across the U.S. since their peak five years ago. Cities in California have suffered most

Burst bubble: House prices in Las Vegas, Nevada, have fallen to a low of $120,334, down 60.7 per cent from their 2006 peak

Zillow chief economist Stan Humphries said: 'Home value declines are currently equal to those we experienced during the darkest days of the housing recession.'
At the same time, it emerged that 28.4 per cent of homeowners are now in negative equity, owing more on their mortgage than their property is currently worth.
The grim findings have forced the firm to reassess its forecast for the next 12 months, saying it is unlikely prices will reach a bottom by the end of 2011.

Enlarge Tumbling prices: Ten cities across America have seen home values fall by up to 69 per cent since they peaked at the height of the real estate bubble

In April, prices fell for the 57th consecutive month. But according to economist Christopher Thornberg, the market is 'really in neutral'.


TEN HARDEST-HIT CITIES


Cities where house prices have fallen most since peak at height of bubble, with drops by percentage

1. Merced, California, 69.4 per cent

Peak: $343,740 (2005), now: $105,110
2. Stockton, California, 63.8 per cent

Peak: $409,773 (2006), now: $148,231
3. Modesto, California, 63.6 per cent

Peak: $364,591 (2006), now: $132,849
4. Las Vegas, Nevada, 60.7 per cent

Peak: $306,086 (2006), now: $120,334
5. Fort Myers, Florida, 60.3 per cent

Peak: $304,561 (2006), now: $120,990
6. Vallejo, California, 58.9 per cent

Peak: $472,819 (2006), now: $194,210
7. Port St Lucie, Florida, 57.9 per cent

Peak: $253,925 (2006) now: $106,995
8. Bakersfield, California, 57.5 per cent

Peak: $274,500 (2006), now: $116,616
9. Salinas, California, 57.2 per cent

Peak: 686,488 (2005), now: $293,775
10. Melbourne, Florida, 56.7 per cent

Peak: $232,732 (2005), now: $100,805


He told ABC News the size of the price decline is tiny compared to the drop from 2006 to 2009, when 'prices were too damn high.'
He said: 'If there is a decline, who cares? There are a lot of people that seem to think that if home prices don't go up that the economy is never going to heal.
'I got news for you, the economy is healing. If you think food prices are high and gas prices are high, why do you think high home prices are good?'
But his advice will be little consolation to homeowners in ten cities where house prices have fallen by as much as two-thirds since the height of the real estate bubble.

The city of Merced experienced the worst decline, of 69.4 per cent, closely followed by Stockton and Modesto.

Outside California, homeowners in Las Vegas were also badly hit, as prices declined by 60.7 per cent in just five years, hitting a low of $120,334.
Fort Myers in Florida saw a similar decline, with the average house price falling to $120,990 from its February 2006 peak of $304,561.
Mr Thornberg said: 'The market has hit a point of stability and it's going to stay here for a while.
'We have a mortgage hangover that we need to work through and only time can fix that.'







by Taboola


























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[pslhomie]

The trouble is that the economy is growing so slow (around 1.5-2%) that it is still in danger of swinging the other way. The economy would have to grow between 4 and 5% just to dig us out of the hole we are in. All we are doing is paying the interest on debts and not reducing them. You can't reduce debt unless you prop up the tax base. Putting more and more people on social programs only weakens the existing tax base to the point that either it will collapse or there will be a tax revolt which could lead to a civil war of sorts. Hopefully it will be civil LOL.

I believe that people are now waking up to the fact that the stock market may not be the best place to keep money in the near future and people are looking for other ways to get a return on their investment money. Buying houses at such low rates may spark another bubble and push prices way up again. My guess (and I am stupid but do read everyone on the economy) is that if home interest rates get to a certain point people will buy buy buy houses and watch their value go up selling them once the interest rates get to a certain point where other buyers who are now renting and saving money will feel the need to jump back in. Where that line is I don't know. Afterall I was wrong about the bottom of the housing market (not that far off) so I am probibly wrong about this. It's just being conservative. You have to hope for the best and be ready to accept the outcome.

[wireyourworld]

Well the fallen value of my house hasn't effected me at all, since I have no intention of selling it. I also bought it in an area with a controlled growth plan, so values there did not fall as much and are recovering faster than lets say port St Lucie. Places that overbuilt during the boom are some of the hardest hit during the crash. Recovery does take longer based on jobs. And places like psl, where a significant part of the population commutes south for work as psl does not have the greatest employment opportunities, will also have very slow recovery.

If you have a job in palm beach cry, why wouldn't you look there to buy a house versus psl? While prices are still on the low side? Sure they might be cheaper in psl, but over the long term buying in pbc is a better option.