A state filled with ever increasingly priced white elephants
https://www.dailymail.co.uk/news/article-13739993/florida-real-estate-crisis-condo-owners-slash-prices.html
It's been a few years since the Champlain incident when the condo tower collapsed. That triggered legislation that forced condo associations to actually have to pay for the repairs. These repairs are structural. These repairs will double or triple the cost of someone's mortgage.
They've been delaying for the last 40 years. 40 years of maintenance and future proofing bills are now coming due and the market is crashing. It's already been crashing for a bit due to insurance costs and inability to get it and just being a target for natural disasters. But this one is going to be a permanent blight on the financial picture of the state.
The qty of unsold inventory is the best indicator. It went from 9k to 20K in one of the marketplaces and it's sitting there. Anybody who is has enough money to actually afford one of these things is smart enough not to touch it. As the prices drop it won't matter because people still will not be able to afford the maintenance. And the maintenance will only become more expensive.
There will be a continuous stream of people who have to leave those condos because they can't afford it and they can't afford to sell it. No one wants them. So that means the inventory pressure will only go up.
Also, the condo association boards are going to be abandoned. They won't be able to afford the board member insurance that protects them from bad decisions. Who wants to be legally responsible for many millions of dollars in repairs? It will land on a condo board someday. And those people will be personally responsible. No one wants that. So those repairs are going to be totally ignored as the condo boards fall apart.
So then what? What happens to the remaining market? Will the dropping prices depress everything else even though they can't be sold? Or will the can't be sold and removal from the market mean that everything else raises in prices?
It's been a few years since the Champlain incident when the condo tower collapsed. That triggered legislation that forced condo associations to actually have to pay for the repairs. These repairs are structural. These repairs will double or triple the cost of someone's mortgage.
They've been delaying for the last 40 years. 40 years of maintenance and future proofing bills are now coming due and the market is crashing. It's already been crashing for a bit due to insurance costs and inability to get it and just being a target for natural disasters. But this one is going to be a permanent blight on the financial picture of the state.
The qty of unsold inventory is the best indicator. It went from 9k to 20K in one of the marketplaces and it's sitting there. Anybody who is has enough money to actually afford one of these things is smart enough not to touch it. As the prices drop it won't matter because people still will not be able to afford the maintenance. And the maintenance will only become more expensive.
There will be a continuous stream of people who have to leave those condos because they can't afford it and they can't afford to sell it. No one wants them. So that means the inventory pressure will only go up.
Also, the condo association boards are going to be abandoned. They won't be able to afford the board member insurance that protects them from bad decisions. Who wants to be legally responsible for many millions of dollars in repairs? It will land on a condo board someday. And those people will be personally responsible. No one wants that. So those repairs are going to be totally ignored as the condo boards fall apart.
So then what? What happens to the remaining market? Will the dropping prices depress everything else even though they can't be sold? Or will the can't be sold and removal from the market mean that everything else raises in prices?
