Home Prices Falling Off A Cliff In Florida
The News Press reports from Florida. “A Fort Myers-based real estate agent is calling on his colleagues to stop doing business with Countrywide Home Loans, saying the company is cutting off home equity credit to solid residents of Lee County because of falling housing prices. ‘I have used Countrywide as a borrower and real estate agent for 15 to 20 years and they have decided that the relationship means nothing,’ he said in an e-mail. ‘Just because they say Lee County is in a really declining market for values, they’re just going to cut you off.’”
“Not everyone is sympathetic to Powell’s crusade. ‘As a real estate appraiser in this area, I see firsthand what is going on in our real estate market, and I do not fault Countrywide one iota,’ said real estate appraiser E. Scott Johnson in Fort Myers.”
“‘With home prices falling off the edge of a cliff in Southwest Florida, Countrywide is wise to shut down these lines of credit, as they cannot be sure the equity still exists that was securing these lines of credit,’ Johnson said.”
“In fact, he said, ‘Countrywide is finally exercising some amount of fiscal restraint that was lacking in the past few years and was partially responsible for our current credit crisis in this country.’”
“‘It shows you this vicious cycle,’ said said John McIlwain, senior resident fellow for housing at the Washington-based Urban Land Institute. ‘The appraisal on which that credit line was issued probably is no longer good and his home may very well be worth less. You cut credit off from places that are struggling and that makes it worse. It accelerates the problem.’”
The Naples News. “Nobody’s predicting the shooting-fish-in-a-barrel real estate frenzy that dominated sales in the infamous years of 2004/5, but if anything, the return to normalcy is imminent. This is the view of mortgage banker Kim Escarra and also Realtor Jim Prange.”
“Escarra, in particular, emphasizes that some of the optimism relates specifically to properties in Collier County — this against the backdrop of national real estate sluggishness and the glut of foreclosures. ‘Collier is different,’ Escarra said, ‘and we started our market correction before the economy issues occurred.’”
“Prange said there have been prospective buyers out there for the past two years, but that there was no urgency for them to act. ‘The sellers are all of a sudden getting realistic,’ he said. ‘If you look at 2005, the least expensive waterfront lot was $625,000. Now there are 40 of those lots on the market at under $500,000.’”
The Palm Beach Post. “At Green Cay Village, a freshly built condo project west of Boynton Beach, 20 sales fell through after buyers who qualified for loans during the boom no longer had financing when the units they had signed for were completed.”
“Many builders saddled with unsold homes are slashing prices. But Green Cay Village’s developers, Goray Communities of Boca Raton and Housing Trust Group of Coconut Grove, have decided to hold the line on prices — much to the relief of the 240 buyers who paid $200,000 to $300,000 for units at Green Cay Village.”
“Small builders who don’t want to cut prices gripe that national builders have been undermining them by holding fire sales. ‘There’s a lot of animosity,’ said David Seiders, economist at the National Association for Home Builders. ‘If they’re dropping prices like crazy, it’s going to take the whole market with them.’”
“But Seiders doesn’t necessarily think price cuts are a bad thing, given the glut of homes for sale. ‘I keep preaching to builders, ‘You’ve got to keep the inventory down,’ he says.”
From Hernando Today. “County commissioners and planning staffers were under no illusions Wednesday about the enormity of the Lake Hideaway development, proposed for U.S. 19 in northwest Hernando County. With 3,700 homes planned, commissioners had to look at this development even closer because it falls into the category of a development of regional impact, or DRI.”
“County Commissioner David Russell said residential growth in that sparsely developed section of the county is inevitable, so it makes sense to latch onto a well-detailed plan that the Lake Hideaway developers are proposing rather than parcel out the property piecemeal in the future.”
“‘This project epitomizes responsible planning,’ Russell said.”
“Only Commissioner Diane Rowden voted against Lake Hideaway, citing the continued housing market downturn, growing number of foreclosures and lack of immediate building plans by the developer. ‘I can’t support 3,700 new homes,’ Rowden said.”
“Hernando County already has thousands of homes sitting empty, she said. Also, the development order calls for build-out of this project by 2013 or later, depending on the status of the housing market.”
“‘The people out there have basically said, ‘Enough’s enough,’ as to these massive plans of growth,’ Rowden said.”
“But Joel Tew, an attorney representing the developer, said once the housing market comes back, people will flock to Lake Hideaway. Unlike other states, Florida follows a V-shaped housing curve, which allows for a faster recovery.”
“‘We crash harder but come back quicker,’ he said.”
The Herald Tribune. “Whoops, did I say bottom? Well-known state economist Hank Fishkind says he erred in calling a floor to Southwest Florida’s housing market last year.”
“Fishkind admitted to a crowd of business people from the Manatee Economic Development Council on Wednesday that he mistakenly thought the housing market was bottoming out in mid-2007, but he added that he now thought 2008 would mark the beginning of the recovery.”
“‘I thought the market had stabilized right here,’ Fishkind said, pointing to a chart illustrating existing home sales in Manatee County. ‘But then we got the financial panic, and the meltdown in the market, so things took another turn down.’”
“Fishkind said that he thinks the low point has now arrived, and that ‘in the next few months’ we will see a ‘bottom form in the existing housing market.’”
“He is predicting that the national economy as a whole — in the first half of 2008 — will skate close to the edge at ‘nearly a recession,’ but will not fall into a full-fledged recession. He thinks that by the second half of the year a recovery will begin.”
“Fishkind’s predictions of late have been on the rosy side of the prognosticators. Jack McCabe, the Deerfield Beach-based real estate economist, would be roughly 180 degrees away. ‘We’re in a recession right now,’ said McCabe. ‘Tell the people who have lost their jobs, to young families who have left the area because they can’t afford it, and those people in foreclosure right now, that we’re not. They have a much different perspective.’”
“‘We have some economists in the state of Florida who have been inaccurate in their predictions over the last three years,’ he said. ‘Those who have been calling a bottom now for a year or more, which has proven to be not correct, need to get out of their ivory towers and unbury their nose from outdated Census Bureau statistics. They need to hit the bricks and start talking to people, and then they’ll find out just how antiquated their predictions are.’”
“Like McCabe, Miami-based economist Kenneth Thomas, who correctly predicted the last recession in 2001-02, does not see a recovery like the one Fishkind outlined as probable. ‘I think we’re still on a downward slope, and will be on it throughout this year, and probably even into much of next year,’ he said. ‘We’re not going to get out of this in a matter of months or quarters.’”
“Thomas said he thought in many cases the true housing inventory numbers now are even worse than they appear because some people have simply given up on selling.”
“‘It’s like unemployment, where people just give up looking for a job altogether, and suddenly they’re no longer counted in the statistics,’ he said. ‘It’s the same thing now with housing, where people have just pulled her homes from the market. They’re no longer listing them.’”
‘Lender Ocean Bank alleges the now-bankrupt Hialeah condo converter Puig Inc. and affiliates spent millions of company money to benefit its executives and faked financial reports to hide the company’s true condition from creditors. The Miami bank, which claims it is owed about $2.5 million, estimates that Juan Puig and other insiders took more than $5 million from the Puig firms in the months leading up to their bankruptcies in May.’
‘Puig and its affiliates converted and sold 19 apartment projects with 1,400 units from 1994 through 2007. But the empire unraveled after an ill-advised expansion and a cooling in the conversion market. Liabilities exceed $140 million. But there was more going on than a market slump, Ocean Bank claims.’
‘Puig’s real estate ventures afforded him a lavish lifestyle, which included a Gables Estates waterfront mansion, a condo near Aspen, a fleet of 10 luxury cars, a 59-foot Ferretti yacht, and vast art and wine collections. In September, Puig and his wife agreed to return those assets in exchange for being free of all debts owed to creditors. Judge Mark denied the request.’
Cuban ex-pats love to flaunt the bling. I should know, I’m married to one.
Judge Mark denied the request.
Thank you, Judge Mark.
ooohhh. thats going to leave a scar.
Ditto that - Thank you, Judge Mark! Let’s see a lot more of this.
Hey, I just talked to some people who told me , that real estate will turn around in the next year or so, and that if I am going to buy waterfront I better do it soon.
Are you near the Keys? If so, what are the pay, rental prices and vacancies like there?
yeah I live in Key West
I kind of doubt prices are going to stop dropping anytime soon
the people who say its about to turn around, tend to be people heavily invested in real estate. They think the baby boomers will be here in a minute and buy everything
There are a few CBS houses on canals now for the high 300s, in the lower keys, but they rent for like $1500-$1700
I looked at a town house the other day for like high 200s, but its condo fee is like $800 a month, you could rent the unit for like a couple hundred dollars more then the monthly taxes and condo fee.
There are some trailers on canals for mid 200s scattered through the keys too.
The jobs in Keys pay OK for what the job is, but most jobs are like service industry , most people who do well here seem to own their own business
There are a bunch of condos in the 200s around the keys now, a year and a half ago the lowest ones where in the 300s
Why not relocate? The keys are like a mini hawaii and good for a weeklong winter vacation but I wouldn’t want to live there.
We lived in the Miami area for a couple of years and left this past June. While there, the Miami Herald ran several articles about the loss of workers throughout the Keys. Waitress jobs were offering $10/hour plus tips with no takers. Same with front desk clerks and teaching positions. My husband fantasized awhile about taking an advertised gig that was $50K/yr to run a kayak rental. They’d advertised for over six months with no takers. Apparently, it was because of a lack of affordable places to live. Cheap apartments were torn down and replaced with luxury condos. Last time we visited Key West it was looking seriously run down and scuzzy. Lots of those historic older homes near the Hemingway place and the southernmost buoy looked in desperate need of TLC and many were for sale. We got lost wandering back in there looking for a public bathroom for our young daughter and it was pretty sketchy. It reminded us of New Orleans and not the good parts. Other Keys are nicer I think, for vacation spot.
I live here so I can fish and dive the coral reefs, mainland Florida sucks, mainland is like a big congested highway full of rednecks and people who don’t speak English driving monster trucks like they want to kill each other
I also own my own business, so I don’t have to wait tables or anything
well I posted but I think it got eaten
I live in Key West
There are now CBS homes on canals in the lower keys for 300-400k
They rent for around $1500-$2000
There are condos now in the Keys in the 200s and some small units for less then 200, they were all in the 300+ range a year and half ago
most people who says its about to turn around tend to own waterfront property, they think the boomers are coming and are going to buy everything.
I don’t even look at waterfront directly in Key west, I don’t think no matter how much the price drops it will be in my range
Here’s a Key West trailer, pardon “Conch cottage,” for rent for only $2,200 a month. What a steal!
http://keys.craigslist.org/apa/571391722.html
Note the owner is a Florida licensed real estate agent!!!
Here’s another “adorable” Key West “Conch cottage,” for only $1,600 a month, and it’s locatated in “historic Bahama Village” (translation Slumville/Crackville), which makes it even better.
http://keys.craigslist.org/apa/525895242.html
However, the apartment below doesn’t look too bad, and is amazingly cheap for Key West:
http://keys.craigslist.org/apa/533584294.html
I bet a couple of “exotic dancers” will be in that apartment in no time.
“Roommates”
I have an ex living in the middle Keys and she is a Used House salesperson. Spoke to her recently - she is very depressed, nearly broke, and has not sold anything in a long time. Flashback to THREE years ago when I warned her specifically what was coming and how to prepare for it. Did not follow any of my advice - the Keys were “special”".
Yep, she is definitely an EX.
Bahama village is nice compared to where I am from in NY, where I am from people kill each other regularly. In Bahama village there are hatians that smoke pot
If your in FL, I can say with NO hestiation, those people are WRONG, you have plenty of time to look for waterfront RE, and probably won’t see the bottom for another few years (longer if all these idiotic MTG bailout and other “save the homeowner” crap plans pass in congress).
Anyone predicting a recovery in S. FL, where there is currently 2-6 YEARS of inventory on the market (depending on local market and type of property) is truly insane, and needs serious help.
Is there a good site for older inventory data? I’ve been keeping track of the Sarasota/Bradenton area since 2006, looking to eventually buy, however I know inventories were already high then; at least the “new listsings” count that the SAR keeps really spiked up in late ‘05 - so I’m assuming that’s when the general inventory went up. I’d be good to get some historical data for that area, and other areas if possible, going back into the 1990’s at least. The FAR stats don’t include inventory numbers unfortunately.
To me inventory counts mean everything, and I agree that the current inventory counts indicate that Fishkind is an idiot. The bottom won’t be here until *after* inventory goes back to historic levels - and IMO it’ll be a slow ride down from the top, like it’ll take at least 3 years for inventory levels to come down from their current record highs, at a minimum.
I’m expecting (and hoping) Florida prices drop back down to about 1999 levels. And I’m not talking in inflation-adjusted terms either - i.e. I’m hoping for an overshoot on the downside. Then I plan to scoop up.
I agree — inventory, inventory, inventory !!!
It’s the one concept that Fishkind and his fellow “the worst is over” crowd scrupulously avoid mentioning or addressing. And, it’s the real problem that the assorted bailout proposals are strying to stanch — the bailouts are the PTB/Govt. way of saying “please please no more houses for sale”
Inventory is inarguable, inescapable and unforgiving. And more of it is inevitable, methinks.
Housing Tracker provides some “historic” numbers on inventory running weekly from mid 2005. They also have a new “Beta” index of REO inventory that is interesting. The index bases REO inventory in each city at 100 in June 2007 and shows the increase from that date in simple percentages– i.e. 127 would be a 27% increase etc.
..insane, or simply serving his clents interests. Take a careful look at Fishkind & Associates clent list:
http://www.fishkind.com/client.html
lol. I hope your reply was “You buy it, I’ll rent it from you.”
I would advise buying everything in sight, use Ron Sheffield as your Florida advisor.
Wife and I were in the Keys last year. Stayed on one of the Lower Keys. EVERYTHING was for sale. One street had 35 $1 mil plus homes for sale. The RE bulls kept telling us the rich Europeans were going to come in and buy it up. Guess they are still waiting. It also seemed that working class people were being squeezed out. At night most of the homes were dark, nobody home. Sure there is always a big vacation home population, but for January, it was quiet.
It’s been confirmed here before that a significant percentage of the Keys’ hourly wage workforce is bused in from Miami-Dade every morning.
The idea of even one $1 million house in the Keys is ridiculous. I have no idea what it would cost to insure a house there, but I have read that some old-timers, with no mortgage, are going naked, and I’m not referring to Fantasy Fest. My favorites still are the McMansions on Islamorada within easy walking distance of the monument to victims of the Labor Day Hurricane.
You mean like the one in the HGTV Dreamhome giveaway? 2 million dollars for that??? It’s actually quite small inside, hideously furnished, and positioned so that other houses will eventually be built in front of it, blocking its ocean view.
http://tinyurl.com/27yaru
If I won that thing, I’d sell it as fast as possible…well, after spending a little vacation time there. The tax bill on that thing will be horrible. If they say it’s worth $2 million…I’d start at $1 million and go down from there.
Funny thing about all the HGTV dream homes is not 1 has ever been lived in they have all been sold by the winners.
Hey, I just talked to some people who told me , that real estate will turn around in the next year or so, and that if I am going to buy waterfront I better do it soon.
That has been the predictions of Mr. Fishkind who has continued to miss his predictions. Buy it and watch the price fall about 25-30% more over the next two years. Then you can thank Mr. Fishkind for your financial losses!
‘I think we’re still on a downward slope, and will be on it throughout this year, and probably even into much of next year,’ he said. ‘We’re not going to get out of this in a matter of months or quarters.’”
Don’t worry Florida. You’ve got the best criminal protection laws in the country. Imagine the glee on your faces when all of the scummiest people from the other 49 states ooze down into your sagging, bloated, mosquito-infested peninsula.
…………please don’t encourage them. There’s enough here already.
Ahh.. Yes? Of course? WTF were you thinking assuming otherwise?
Banks are in the business to make money you moron; and, they as you seem to think, in the business of keeping the homedebtors lifestyle supported through ever increasing debt accumulation. Now, I can kind of understand your confusion, as they seemed to be in the “debt spiral” business for the past few years. But, make no mistake, all of the sudden, the banks would now like to be paid back again!
What a stupid statement. “Like, you mean, when I hit my credit limit on my Gap card, that I, ahh, can’t, like buy anymore stuff?”.
“Just because they say Lee County is in a really declining market for values, they’re just going to cut you off.”
These residents need to have some Hope Now. They can always get a Lifeline.
Real World Worries
http://tinyurl.com/ywhn6c
“We’re definitely struggling right now under the weight of the housing correction, coupled with elevated energy prices and just a general souring in overall sentiment, really,” said Dr. Sean Snaith, an economics professor at the University of Central Florida.
Snaith, the director of UCF’s Institute for Economic Competitiveness, was hesitant to predict a recession but said graduating seniors might have reason for concern.
“When the economy is slowing down, we expect fewer new positions to be created,” Snaith said. “Firms may be more hesitant to hire if they’re uncertain about what their future prospects are. Unfortunately, the bottom of this slow period will coincide with spring graduation. So for people graduating this year, it might make it a little tougher go.”
COME TO THE DARK SIDE, SEAN.
He’ll be lucky if graduating UCF seniors don’t pelt him with rotten eggs for contributing, in his own small way, to the miserable economy that confronts them.
“rotten eggs”
Sean, use “rotten eggs” in your next food/housing analogy. Send us a signal! We know you’re reading!!
Why does anyone listen to these morons??
Economists, my ass.
As i’ve said before, Economics was created to make Astrology look respectable.
Do post take awhile to show up?
Can take a few seconds to an hour. You never know.
Seems people are confusing the housing and the stock market. I do think we could see a bottom in the stock market in the next year or so, although housing will take longer, since once a problem is clearly identified the markets can respond immediately. I do agree, however, the markets haven’t accurately identified the depth of the problem yet.
How dare Countrywide cut off Home Equity Lines of Credit. Don’t they realize that the economy runs on vapors, smoke and mirrors. What they are doing is Un-American.
Countrywide is yanking HOE-ATM machines from the yards of solid residents. That’s outrageous! How dare they?
Right, and borrows to pay his taxes. And these guys will wonder how they got in trouble.
WTF is Countrywide doing?! It’s every American’s duty to shop until we defeat terrorism.
What’s with all the SW Florida news and really not much in SE Florida (other than Miami ghettos)? Late last year, pops decided to rebuy in Ft. Lauderdale, condo just off the intercoastal. Of course we had varying opinions, but he ended up buying a condo about 30% off peak. Already using it every other week (he’s retired).
I’m hungry for something in that area as well, but am in no rush to move, but the more I look, the less I find. It’s like no one is selling, period, in any of the areas I’m looking in (generally looking for prices in the high 100s, but rarely finding anything even close to low 200s).
Anyone aware of what parts of SE Florida are currently showing real downturns in the past 6-8 months? I saw a dip in 2006, a bit of a dip in 2007, and lately it’s been very flat. In the building pops owns, rents actually increased YOY by almost 8%, so I’m wondering if some of the more stable neighborhoods are entering a temporary equilibrium or if it is just more eyewash.
Being someone who follows news patterns, I can say that certain organizations turn off the coverage when news isn’t rosy. Ask your local newspaper to look into it.
My old house in Wellington is off $150,000 in value. It is still overpriced by about $150,000. Another three years will do it.
“but the more I look, the less I find. It’s like no one is selling, period, in any of the areas I’m looking in”
Google: Countrywide REO, Chase REO, Bank of America REO, Citibank REO, any other Florida bank REO. 1000’s avaiable.
The sun-sentinel seems to do very little reporting on Broward County’s downturn. In Cooper city, I have seen several homes in the 3000 Sq. Ft. range sell for 25% off peak asking prices. Sales are in the high 500’s and low 600’s. Originally asking in the 800’s. They have secured two mortgages as well. The same is happening in Davie and Hollywood. In Davie a 5900 sq. ft. Mcmansion sold for 1.2 down from original asking price of 1.8. Last sale 1.5 in 2006. Very few sales above $600k anymore.
south florida is going to be the last place to accept the downturn. december was finally a turning point and local banks are not giving out loans to local condo developments any more and there is “alot” of development. i wouldnt touch a condo here this year or next or maybe even 2010. too much inventory!
fishkind is such a loser. pure locust all the way.
the new issue in south florida this year is condo fees and special assessments. whatever price your mortgage is dont matter if you get slammed by extra cost off and on.
‘I thought the market had stabilized right here,’ Fishkind said, pointing to a chart illustrating existing home sales in Manatee County. ‘But then we got the financial panic, and the meltdown in the market, so things took another turn down.’”
“Fishkind said that he thinks the low point has now arrived, and that ‘in the next few months’ we will see a ‘bottom form in the existing housing market.’”
The man is absolutely shameless. Sometimes I wonder whether, deep in his soul, he resents being converted from an academic advancing knowledge into a public relations soothsayer following the money. I’m not a psychotherapist, but you’d think that kind of internal conflict would manifest itself toxically some day. Cue the seal!
But, he has an interesting name. And next year, some other panicking group will pay him to tell them that the bottom is definitely around the corner. And the next year, it will happen again. So he does have a stable job.
LOL!
The man is absolutely shameless.
Not to Mr. Fishkind, he is lining his pockets with the cash he is receiving being the industry cheerleader. Call his bluff and post factual information to dispute Fishkind in the blogs on the local newspaper web sites who print Fishkinds predictions.
I grew up in the Upper Keys. Going to high school there I probably knew most of the thousand or so families in the area. Most of the condos built in the 80s cost developers around 40k to build and they sold them for 80-120k. Full size four bedroom houses on a canal ran around 300-400k. That was $100 a sq ft, 3500 sq ft home built out of concrete block with a concrete roof, and concrete seawall. This was typical for the doctors, lawyers, captains, and hotel moguls. I really cant remember anybody living in anything bigger than this.
During the 1991 slowdown we advertised our condo for sale for 4 months without even a nibble. The economic base there is very limited. It finally was sold to a European retiree. However that was only the 3rd time we had ever heard of it happening in the decade I was there.
Out of the thousand or so families that made up the community I would say all but perhaps 15-20 have left. The taxes, insurance, and energy cost drove them all out. I still talk to a few of them who have moved back up north to work, and we all sort of view it as paradise lost. Most of us look to retire elsewhere in Thailand, or the Dominican Republic in a few years.
That’s why prices will crash hard. Soon only rich snowbirds will want a home in the keys(once prices bottom out of course)
“But Joel Tew, an attorney representing the developer, said once the housing market comes back, people will flock to Lake Hideaway. Unlike other states, Florida follows a V-shaped housing curve, which allows for a faster recovery.”
“‘We crash harder but come back quicker,’ he said.”
Warning : These views do not necessarily represent the views of anybody on earth.
The “v” theory may be true — however:
..\ - - - - - - - - - - - - - - - /
…\ - - - - - - - - - - - - - -/
….
ah well — that didn’t work. I made a big V — and we were still 2/3 of the way up the left hand side of the V - with plenty of downside still to come before things stop getting worse. but - all the spaces and dashes probably just pissed off ben’s filters.
Good point
“Fishkind said that he thinks the low point has now arrived, and that ‘in the next few months’ we will see a ‘bottom form in the existing housing market.’”
Warning : These views do not necessarily represent the views of anybody in our Galaxy.
Just got back from looking at homes in Brandon/Riverview (suburb of Tampa), the new developments didn’t have personnel there at the scheduled opening of 1000 hrs. I went to a David Weekley and two others and it was the same, no workers/salespeople. We are still in the denial stage here as new homes are still above $110 sq ft. I want 2003 prices of 70-80 a sq foot.
I want 2003 prices of 70-80 a sq foot.
………….you are clearly a spendthrift!!
Why so generous? Do you just have money to burn??s
Come to Tampa. I know a nice piece of property looking for a new owner.
$70/foot will be 1998 prices
And we’ll go below that. My wife’s friend just sent her info about a condo in Brevard County that was purchased for $175,000 in Feb. 2006. 1,037 sq. ft. under air. 1988 construction, listed for $68,500 and now contingent. Another one in the same complex is similarly priced, but missing the fixtures.
Furriners might think, “Wow! Investment Opportunity!” Not so fast, Rolf. Who are you going to rent it to? Folks in the economic level who would rent this place are the ones being laid off. This is what places like this sold for in the late 1990s; so if we revert to those levels, as these two sales surely will cause comps here to do, you aren’t going to make a profit selling it, Rolf, and you’ll be competing with a heckuva lot of inventory to rent it.
Oh brevard county. I live in palm beach county where prices are much, much higher. $68k for a 2/2 condo in brevard county doesn’t surprise me all that much. You can get that same size condo for $99k in pbc.
Besides I don’t really like condos due to HOA and no “land”
detatched houses on 1/4 acre plus lots are what I have my eyes on. How are prices now?
I’m in Orlando but have several friends over there. Pretty much the same story in both places, except the Mouse and UCF seem to offer a bit better cushion for Orange County. Brevard is a pleasant backwater and weekend place for Orlandoans, but there are precious few high-paying jobs there. If the Shuttle goes away and isn’t replaced at the Cape, that will noticeably reduce such jobs.
I’m in Brevard. I’ve seen units in waterfront complexes already selling for less than $100/sq.ft. I saw Wells Fargo agree last week to a short sale on a new condo that was purchased for $299,900 in 2006. Balance on mortgage was $269,000. Wells walked away with $179,000, a $90,000 haircut. In another listing of a 2 year old riverfront building, Countrywide has agreed to a short sale for $265,000 less than the 2 year ago purchase price. If they get the $435,000 they’re willing to take it will represent a $210,000 write off. I imagine they’re taking these kinds of hits everywhere and that the billions in losses have only just begun.
Florida is in for a long haul before we reach bottom. Amendment 1 is not going to do anything for the market; it does nothing to attract out-of-state buyers and it only benefits current residents if they have owned their home for more than 4-5 years. i.e. the portability is the difference between the assessed value and the FMV when the property sells - for those that purchased in the last several years - their assessed valued is just as high as their FMV b/c they overpaid. Besides, it is already under legal attack by a suit filed in Tallahassee. Keep an eye on the Budget and Tax Comnmission recommendations. One recommendation that has been approved by committee, but not the entire panel, is to completely do away w/ education ad valorem taxes on property and support education funding by deleting exempt items from the sales tax as well as imposing a tax on services.
Kevin - you reminded me of one of the biggest, most shameful political shams in the last half-century of Florida history. When the Florida Lottery was created, it was touted to fund education. This is from the official lottery Website:
I”n 1986, Florida voters authorized a lottery through a constitutional amendment, enacted by a two-to-one margin that would use its proceeds to enhance public education in Florida. Governor Bob Martinez and the Florida Legislature established the Florida Lottery with the mission of maximizing revenues for education to allow the people of Florida to benefit from significant additional monies while providing the best lottery games available. Over the 20-year history of the Florida Lottery, both goals have been accomplished.”
I know the details because a man who worked for me was on the committee that created the lottery. What the sleazy, slimy, scumbucket Florida Legislature did, as soon as the lottery was up and running was to DE-FUND Florida’s education budget by a huge amount - I think it was the great majority of what the lottery was supposed to bring in. Effectively, Florida education didn’t g a plugged nickel more because of the lottery - the crooks in Tallahassee just siphoned off the money to use on pork.
Even today, those liars talk about the lottery being for education. Wish I could afford to rent some billboards near theirs, to tell the truth.
Ah yes, the Lottery is so far off the educational funding radar I forgot all about it. You are absolutely correct, it was touted as funding for educational funding and now I bet less than 5% goes to education. Personally, I would prefer to have an increase sales tax w/ no property tax at all. It is fair to everybody and maybe people would be a little more frugal about what they buy. Plus, and maybe most important, the State would collect the tax and the counties would have to stand in line to collect. i.e. let the state and the counties fight over it, instead of the residents getting screwed by both.
‘I have used Countrywide as a borrower and real estate agent for 15 to 20 years and they have decided that the relationship means nothing,’ he said in an e-mail. ‘Just because they say Lee County is in a really declining market for values, they’re just going to cut you off.’”
This guy sounds like my little nephew. ‘If you won’t buy me a shake I’ll hold my breath until I die! So there!’
From yesterdays Gun to a knife fight:
There are few trees in Iraq ,they are mainly surrounding the Euphrates river. If you get more than a mile or so away. It can look as though I am flying over the moon or Mars -nothing to see for miles. I am a Cobra Attack Helicopter pilot in case you did not know what my vehicle of choice is. We planted some grass in a 1 foot by 2 foot box and water it everyday. Everyone goes by it and runs their hand over the blades -It really is theraputic!!! I never shoot trees, trees represent life and good so don’tworry about the trees.
As far as the beer and relaxation. No Beer here except the Non Alcoholic type. I for one drink beer for the alcohol!! I relax by staying connected to the world through financial news/macoeconomic events and HBB. Don’t worry about me losing it - it won’t happen. After being in combat (2nd tour here) is has made me more compassionate, although I can and will take care of myself if threatened. Life is good!!! although I sometimes wonder “Well - How did I get Here” (Talking Heads). This tour has been extremely boring which in a sense is also theraputic since we are winning and I do believe good will come out in the end-regardless of whether we should have been here to start with.
Shakes
…I also drink beer for the alcohol - good luck & stay safe.
Thanks Shakes….you take care of it there and we will make a home affordable for you here. Navy Vietnam Vet myself…it can get crazy. Wanted to be a pilot….that is cool.
I tried posting these links earlier, but they may not have gone through:
Notice the median house price charts for a couple of these Texas cities and tell me what you see:
http://austin.housealmanac.com/
I see “Did you know that around 23% of Austin homes are leased to renters.”
That’s a mighty high percentage for a place that isn’t Las Vegas or Daytona Beach.
And a link to San Antonio median home prices:
http://san-antonio.housealmanac.com/
I see “Did you know that around 0% of San Antonio homes are leased to renters.”
Quite a difference. Is Austin home to one of the huge military bases?
No, there isn’t a large base in Austin, but there is a large university student population, so that would explain the high percentage of rentals.
San Antonio, though, is home to a large military base.
garbage data, can’t be 0%