Hot Homes Get Cold !!

[Y]

I was reading Wall Street Journal (WSJ) newspaper
yesterday (April 12 2006) There was an
interesting article with the title
"Hot Homes Get Cold" especially in
Florida, Washington DC and California.
Most of these houses prices went down.

P.S. Sorry I am not a member of WSJ website
where I cannot post a copy here.

I noticed that many people are NOT buying
homes in Florida with due to high insurance fees,
high cost of living/taxes and
plus the fear of hurricanes.

 

[Cousin Vinny]

I was reading Wall Street Journal (WSJ) newspaper
yesterday (April 12 2006) There was an
interesting article with the title
"Hot Homes Get Cold" especially in
Florida, Washington DC and California.
Most of these houses prices went down.

Here's another link to the same article. AZCentral Unfortunately, I have somewhat a 'birds-eye' view on the whole thing, by just living here, in the world's hottest real estate market!

I agree pretty much with the WSJ article. I read somewhere, an interesting excerpt; In the past decade (1994-2004), there were around 1,000 new condo developments being built in South Florida. In 2005 alone, over 10,000 new condo developments were being built here!

Lately, the market has already corrected itself here in South Florida. Recently, the Miami-Dade planning commission denied around 25 applications for new construction, citing water supply concerns. Rising construction costs also have axed a couple of planned condo developments. We still have the UDB (Uniform Development Boundary) battles, though. That fact alone helps 'soften' the market here against price pressures and valuation concerns.

I would love to own a home here in South Florida someday... Unfortunately, it is looking more and more unrealistic each passing day!

 

[Y]

Here's another link to the same article. AZCentral Unfortunately, I have somewhat a 'birds-eye' view on the whole thing, by just living here, in the world's hottest real estate market!

I agree pretty much with the WSJ article. I read somewhere, an interesting excerpt; In the past decade (1994-2004), there were around 1,000 new condo developments being built in South Florida. In 2005 alone, over 10,000 new condo developments were being built here!

Lately, the market has already corrected itself here in South Florida. Recently, the Miami-Dade planning commission denied around 25 applications for new construction, citing water supply concerns. Rising construction costs also have axed a couple of planned condo developments. We still have the UDB (Uniform Development Boundary) battles, though. That fact alone helps 'soften' the market here against price pressures and valuation concerns.

I would love to own a home here in South Florida someday... Unfortunately, it is looking more and more unrealistic each passing day!

Thanks for another link here.

I recalled some recent conversations with Floridians
they mentioned that there are new laws changes
requiring all new buildings (include Condos) MUST
have NO more than 4 stories high anymore !!
Is this true ?

In spite of these news I'm trying to understand
your Florida perspective, what made u think
it's more unrealistic for you to own
a home in South Florida ? (even with these
house prices going down) ?

 

[Cousin Vinny]

I recalled some recent conversations with Floridians
they mentioned that there are new laws changes
requiring all new buildings (include Condos) MUST
have NO more than 4 stories high anymore !!
Is this true ?

Never heard of it. However, I have heard new construction projects being stalled or denied due to water supply concerns. I assume this is a temporary setback until the water issue is resolved for these projects.

In spite of these news I'm trying to understand
your Florida perspective, what made u think
it's more unrealistic for you to own
a home in South Florida ? (even with these
house prices going down) ?

Well, there are several factors;
* I'm a single guy. You really need a dual-income household to purchase a home in South Florida. Otherwise, it's too difficult.
* Interest rates are inching up again. This makes the cost of borrowing go up, and home prices are already high as they are. Creative & exotic financing solutions aren't really to my liking.
* I'm not employed, and I would need to secure a good paying job. A recent Miami Herald survey found out that a person would need to earn at least $80,000 a year in order to purchase a home with the 'mean' price point and factoring in current interest rates.
* This is the single biggest factor affecting home ownership in South Florida--The UDB. (Uniform Development Boundary) This is a decades-old boundary line designed to protect the Everglades from rampant and unchecked development. Take one look at Atlanta's urban sprawl to really begin to understand the differences between South Florida and other real estate prices elsewhere.

The UDB has an effect of making land scarce, and that drives up prices all over South Florida. In fact, even developers are looking inward, trying to buy up blighted parcels in South Florida and just bulldozing them, making room for newer and more lavish planned communities.

 

[Y]

Eyeth,
Yeah, I think I understand your pointviews
with good reasons. I am sure that
you will find best solutions meeting
your needs and wishes. My parents
are about two hours away from Miami.
But, someday I want to see what
Madonna's mansion look like ... Have
you ever seen Madonna's mansion ?

 

[Steel X]

alot of my relatives lives in Florida so one of the bad things I hear about Florida is that water is very limited and is indeed pretty expensive than you would think.

 

[Cousin Vinny]

But, someday I want to see what
Madonna's mansion look like ... Have
you ever seen Madonna's mansion ?

No. It's pretty secluded, heavily forested. Also, I think Madonna sold it.

 

[Cousin Vinny]

alot of my relatives lives in Florida so one of the bad things I hear about Florida is that water is very limited and is indeed pretty expensive than you would think.

Water is indeed limited! But, it is still relatively cheap, compared to parched Southern California cities, for example. However, it is cause for concern, enough to squelch new major developments for the time being.