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June 24, 2019
Climate risk poses a threat to long-term lending in Florida

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Florida Trend Real Estate

Climate risk poses a threat to long-term lending in Florida

| 5/20/2019

Climate risk poses a threat to long-term lending in Florida

The future of long-term lending looks pretty cloudy for the Sunshine State. At a recent investment conference in New York, Spencer Glendon, a senior fellow at the Woods Hole Research Center and a former partner and director of investment research at Wellington Management, laid out a dire prediction for Florida. “No one should be lending for 30 years in most of Florida,” he said. “During that time frame, insurance will disappear and terminal values” – future resale income – “will shrink. I tell my parents that it’s fine to rent in Florida, but it’s insane to own or to lend.” More from Mortgage Professional Magazine, Bloomberg, and The Real Deal.

Florida Legislature passes bill that could boost foreign investment in real estate

The Florida Legislature recently passed a bill that would make remote online notarizations legal, a move that could speed up foreign and out-of-state real estate investment in the Sunshine State. Florida’s House of Representatives and Senate approved House Bill 409, which now heads to Gov. Ron DeSantis’ desk. If DeSantis signs it into law, Florida would become one of only a few states that accepts remote electronic notarizations. [Source: Real Deal]

Even as foreclosure rates drop, Florida feels the pain

Even as home delinquency rates hit record lows nationwide, some parts of the country have seen a spike in the number of foreclosure starts. Some parts of the country have seen a spike in the number of foreclosure starts. A total of 17 states, including Washington, Florida and Oregon, saw starts grow over the past year. Florida, in particular, saw some of the largest increases in foreclosure starts in individual cities, with 90 percent annual growth in Orlando and 45 percent annual growth in Miami. [Source: Inman]

The rise and fall of real estate in South Florida

Boom. Frenzy. Free-for-all. Pick your metaphor. None come close to the madness that was Florida’s 1920s real estate boom. With World War I over and prosperity spreading, with the railroads bringing investors literally by the trainload, with car ownership and road construction growing exponentially, and with enforcement of Prohibition all but a joke, the hottest investment in America was a place that had gone from a worthless swamp to “America’s Riviera.” [Source: Daytona Beach News-Journal]

Miami home values may have peaked. But how will that affect prices?

A new report by the online real estate firm Zillow shows home values fell in 32 of the 35 largest housing markets in the U.S. in April, including the Miami-Fort Lauderdale area, even though sales prices continued to rise. Although the fluctuations are too small to be evidence of a momentous change, they are indications that the runaway prices that have made housing in South Florida too expensive for locals may be finally cooling off. [Source: ]

STAT OF THE WEEK
$11.5 million
The sale price of a new mansion in West Palm Beach easily set a record, even though it is 15 percent below the initial asking price in 2017. The $11.5 million sale price of the 9,364-square-foot residence at 2914 Washington Road is the highest ever for a single-family home in West Palm Beach. [Source: The Real Deal]

ALSO TRENDING:

› The St. Joe Company announces a new residential community in Callaway
The St. Joe Company (JOE) (“St. Joe”) today announced its plan to develop Park Place, a new residential community in Callaway, Florida. Plans for the community call for more than 300 homesites on approximately 165 acres of land.

› South Florida real estate experts say this construction startup could change bidding forever
Construction is not usually considered a high-tech industry. One Colombian startup believes that can change. A panel of Miami real estate experts at the 2019 LAB Miami Ventures Future of Real Estate conference agreed. On Tuesday, the judges named Bogotá-based Licify the winner of the event’s startup pitch competition.

› Homeowners are afraid to borrow against their equity due to ‘the scars of the housing bust’
Strong equity growth is back in Central Florida, after a few rough years where at one point a majority of homeowners owed more on their mortgages than their homes were worth. Now thousands of Orlando area property owners are rich in equity because home prices have increased 67 percent since prices bottomed in February 2011.

› One of Cincinnati's largest residential real estate firms buys Florida brokerage
One of Greater Cincinnati’s largest residential real estate firms has acquired a Florida brokerage. ERA Real Solutions Realty has acquired Right Choice Realty in Fort Myers. Through the deal, ERA will nearly double its count of independent sales agents and add three offices in Fort Myers.

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