Condo prices in Florida are collapsing. 40% reductions on distressed listings.

Florida's condo market is undergoing a collapse right now, with some listings featuring 40% price reductions.

The reason condo owners in Florida are reducing the price in many cases is due to skyrocketing HOA costs. Which have left many condo owners unable to afford their bills.

Particularly in cities like Miami, where the surfside building collapse in 2021 resulted in a new law signed by Ron DeSantis which mandates that condo reserves need to be fully caught up. Meaning that HOA fees are doubling or tripling for many owners.
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[ReventureConsulting]

I wasn't expecting to see such severe price reductions so quickly.

Here in St. Petersburgh there's condo units going for 30-40% below peak price. And now below 2019-20 values as well.

The reason? Huge HOA assessments.

This is just beginning.

[DoubleplusUngoodthinkful]

$1600/mo is rent. You may BUY one of these condos, but you will never OWN it. IT will always own YOU.

[DonaldMark-nese]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways

[hesswesley]

I’ll buy one of those condos…. For a dollar. That’s the only thing that makes sense for $1, 600 HOA

[fellowshipofthemystery]

A million dollars for a condo in Florida??? People have lost their frickin minds!

[sirheisenberg]

Around $250, 000 was made when I sold my flat in Rochester. That's why I was upset when my standard savings account yielded only $171 in interest. It was suggested to me to buy stocks after I conducted some study. Which stocks would be a good place to start?

[AlexisTyler-gj]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[nateums]

at this point there is no point to insure anything, buy anything, or even look... it's beyond the cost it should be many times over

[jennykatie]

. Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts

[stockey]

40% is not enough, with those skyrocketing HOA fees.

[randomthings]

I can tell you as a Floridian it is true the condo real estate in Florida is collapsing spectacularly, nobody's buying condos anymore.
Having said that, Single homes are coming down a little bit but still extremely overpriced, and I mean extremely overpriced, definitely the prices are unsustainable they need to come down by 30% or 40% or more in some cases

[judithsmith]

Who can afford these prices?
Mobsters.
Drug dealers.
Cartels.

[tatianastarcic]

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

[CountJeffula]

It’s not really a crash when the incompetent HOAs failed to adequately maintain reserves for the past 30 years. It’s more like a snail slowly chugging into the center of a hot parking lot and wondering how it got there after a concerted effort to arrive just there.

[billmcmillan]

I would never get involved in any property with an HOA!

[jerrycampbell-utyf]

People in our society are finding it necessary to acquire new sources of income due to the always shifting economic conditions. For this reason, I am considering investing in the stock market to help me reach my $3 million retirement goal; my main concern is the recent market meltdown.

[snoopcow]

$20K of HOA a year is absolute insane.

[DaveRichard-bdiv]

Considering the economic situation I ask, ?? How can we save our families and friends from financial slavery. It's getting more scary how people are really suffering these days.I can't fold and watch people around me suffer.

[Grace.h-to]

Stability is a result of our economy's struggles with uncertainty, housing issues, foreclosures, global volatility, and the pandemic's consequences. To restore stability and promote growth, all sectors must respond quickly to concerns about growing inflation, slow growth, and trade disruptions.

[joebulterman]

Remember how the percentages work. A 100% increase in value is wiped out completely by a 50% reduction in value. Let's say you buy a property valued at $100, 000 and it appreciates 100% to $200, 000. Well a 50% reduction on that $200, 000 gets us back to $100, 000, our starting value.