Florida Housing Market Faces 'Nightmare Scenarios' as Deals Collapse

[Anonymous]

Florida homebuyers are backed out of deals to purchase properties at a record rate, according to a new report from real estate brokerage Redfin, as prices continue rising and mortgage rates aren't budging.

In June, nearly 56,000 home-purchase agreements were canceled in the Sunshine State, the equivalent of roughly 14.9 percent of all homes that went under contract that month. It's the highest percentage of any June on record.

"We're seeing nightmare scenarios where deals are getting canceled at the last minute for the most minute reasons," Rafael Corrales, a Redfin Premier agent in Miami, said in a press release. In the coastal city, around 2,500 home purchases were canceled in June—about 17.6 percent of all homes that went under contract.

“Buyers often back out during the inspection period because they find something they don't like, but affordability is really the underlying issue," Corrales explained. "I don't want my buyers to be surprised by all of the expenses that come with owning a home in Florida, so I advise them to proactively research the hefty costs of insurance, property taxes and HOA fees, in addition to the cost of their mortgage payment."

https://www.newsweek.com/florida-housing-market-nightmare-scenarios-deals-collapse-1930532

This is going to be a big problem for Florida but no one is talking about it.

[Anonymous]

I think home owners insurance is the issue in Florida.

[Anonymous]

Well I heard the lack of income tax makes up the difference in cost.

[Anonymous]

Anonymous wrote:Well I heard the lack of income tax makes up the difference in cost.

Well gee you suck at math
DeSantis has made Florida unaffordable
Florida has many taxes
Learn math

[Anonymous]

Anonymous wrote:

Anonymous wrote:Well I heard the lack of income tax makes up the difference in cost.

Well gee you suck at math
DeSantis has made Florida unaffordable
Florida has many taxes
Learn math

No need to get snarky. For years, there have been hundreds of post on DCUM and social media of Floridians bragging up the low cost of Florida. How much money Floridians saved by not paying income tax or estate taxes. With the glee came with the taunts of why they left the north east.

[Anonymous]

It's simple, the market is flooded with people who got a bunch of equity from 2020-2023 and want to tap into that money. Prices are dropping as a result so people won't have quite as much equity as they thought, darn, but will still have a lot of equity they got for no good reason.

I'm very happy with the condo I bought in late 2020, 2.8% interest, 3% down and the sellers paid the closing costs, great price and now I have over 100% equity based on what I paid. It could drop a whole lot and I won't care. Also, I have good homeowner insurance and it hasn't gone up hardly at all since I bought.

It's not an emergency unless your expectations are unrealistic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well I heard the lack of income tax makes up the difference in cost.

Well gee you suck at math
DeSantis has made Florida unaffordable
Florida has many taxes
Learn math

No need to get snarky. For years, there have been hundreds of post on DCUM and social media of Floridians bragging up the low cost of Florida. How much money Floridians saved by not paying income tax or estate taxes. With the glee came with the taunts of why they left the north east.

Many parts of Florida got expensive during Covid. Most people moving here now know how expensive it is or are trading the same expenses for better weather.

[Anonymous]

It's the insurance rates that's the issue.

[Anonymous]

Anonymous wrote:I think home owners insurance is the issue in Florida.

This. The average cost of homeowners insurance in Florida in 2024 is $8,770. This figure surpasses the national average of $2,423.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Well I heard the lack of income tax makes up the difference in cost.

Well gee you suck at math
DeSantis has made Florida unaffordable
Florida has many taxes
Learn math

No need to get snarky. For years, there have been hundreds of post on DCUM and social media of Floridians bragging up the low cost of Florida. How much money Floridians saved by not paying income tax or estate taxes. With the glee came with the taunts of why they left the north east.

Many parts of Florida got expensive during Covid. Most people moving here now know how expensive it is or are trading the same expenses for better weather.

I think a lot of people from out of state get sticker shock when they see how much insurance will cost in Florida

[Anonymous]

Economy still booming on the Gulf Coast! Building everywhere and new 2br condos starting at 2 million!

[Anonymous]

Anonymous wrote:

Anonymous wrote:I think home owners insurance is the issue in Florida.

This. The average cost of homeowners insurance in Florida in 2024 is $8,770. This figure surpasses the national average of $2,423.

I live in florida, but not near the coast and not in fancy condo or any of this. Everyone around me lives in the typical block house, and if you have an updated roof, you're not paying anywhere near this. Most people I know pay under $2,000.

[Anonymous]

Modest homes well inland are still in demand. That's where the worker bees live in Florida. McMansions and condos within sight of the Ocean are under pressure, as they should be.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think home owners insurance is the issue in Florida.

This. The average cost of homeowners insurance in Florida in 2024 is $8,770. This figure surpasses the national average of $2,423.

I live in florida, but not near the coast and not in fancy condo or any of this. Everyone around me lives in the typical block house, and if you have an updated roof, you're not paying anywhere near this. Most people I know pay under $2,000.

People not on the water but close are paying this also. The higher rates are not uniform. florida has become more expensive but not that much more.

[Anonymous]

I was looking at prices in Florida, and equivalent areas to the DMV have houses that are double the price per square foot. For example, comparing McLean and Bethesda to Ponte Vedra, Tallahassee, Tampa, even Daytona Beach and Melbourne, the difference is astonishing. We were planning to move down there after the kids left for college, but everything is so expensive that we’d be trading our 9,000 SF McLean home for something a quarter of the size in neighborhoods with worse school demographics (higher rates of free or reduced meals, crime, etc.). And this doesn’t even take into account the cost of insurance—I'm just talking about the prices of the houses.