November 24, 2022
Economist warns national housing market headed for a setback. Why Florida prices may remain high

Florida Trend Real Estate

Economist warns national housing market headed for a setback. Why Florida prices may remain high

| 5/23/2022

Economist warns national housing market headed for a setback. Why Florida prices may remain high

A warning from economists on what the future holds for homeowners and renters. Real estate prices have been soaring in Florida and across the country, but industry experts say there’s going to be a reckoning. The nationwide median price of a home is at an all-time high, a record $391,200. That’s up nearly 15% from last year. What’s next won’t be good for everyone, according to real estate economist Ken Johnson. Johnson said in states like Florida where there’s a severe shortage of available housing, and an influx of new people, he said the value of homes will remain high, and so will rent. [Source: WJXT]

Central Florida tops strongest commercial real estate markets in US, report says

Metro Orlando is the strongest commercial real estate market in the nation, according to a recently released report from the National Association of Realtors. The report handed out scores of up to 100 index points based on 25 criteria for metro areas with populations over 250,000. Overall, Florida regions earned top scores when considering factors such as vacancy rates for commercial spaces, average multifamily rents and weekly wages. [Source: Orlando Business Journal]

Column: Federal and state reforms necessary to address Florida’s residential insurance woes

Florida’s property insurance market has always been among the most complex in the country due to the catastrophic damage caused by hurricanes, but the industry’s downward spiral over the last several years has been particularly unsettling. So much so, in fact, that the state legislature will be convening a special session focused on home (but not condominium) insurance beginning Monday. [Source: Miami Herald]

Dubai developer to buy Florida condo collapse site for $120M

A billionaire developer from Dubai is set to purchase the site of a South Florida condominium that collapsed last June, killing 98 people, for $120 million after no other bids were submitted by the Friday evening deadline for next week’s auction. Michael Fay, of Avison Young, said hundreds of potential buyers had shown interest in the property, but none were ultimately prepared to match the strong initial bid of Hussain Sajwani, of DAMAC Properties. Avison Young is the commercial real estate firm that was appointed to market the land as part of a class-action lawsuit. [Source: AP]

Number of homes on the market rises in Northeast Florida

The residential real estate market in Northeast Florida continues to challenge prospective buyers who face increased costs due to rising interest rates, inflation and scarcity of houses to buy. However, the Northeast Florida Association of Realtors reported an increase in the number of houses on the market in April. The report, released May 9, said there was a 6% increase in the number of houses on the market over the month, but still nearly 20% fewer than the previous year. [Source: Jacksonville Daily Record]

STAT OF THE WEEK
$1 million
Situated between Miami and the larger cities in Palm Beach County, Hollywood offers a middle ground for commuters — Miami’s about 20 miles south and Fort Lauderdale’s just 10 miles north. What type of property can a buyer get in the million dollar price range in Hollywood? [Source: South Florida Sun-Sentinel]

ALSO TRENDING:

› Fort Myers commercial real estate firm grows leadership team
Fort Myers-based LSI Cos. is growing its leadership ranks. In the past week the company has named two new officials to its top ranks, hiring one executive, Mark Price, and promoting an existing employee, Nelson Taylor. Taylor, who was LSI’s market research director, was promoted to vice president of market research. In that role, he’ll oversee research projects and is charged with expanding the department to include the addition of new research associates and services.

› Tiny home community could become first of its kind in Brevard
Tucked away in a former trailer park just west of I-95 in Cocoa, developers are unveiling the first of what they believe could be a solution to the shortage of housing inventory that is helping to drive real estate prices to new heights. The solution? A community of tiny houses. The developers said they are building the little houses in the hopes the concept will take hold and flourish, spurring more tiny home parks across Brevard.

› Another Palm Beach County woman charged in a $300,000 Florida real estate ripoff
A second woman from the Loxahatchee area has been arrested and charged with a $300,000 real estate fraud that the Florida Department of Law Enforcement calls “Operation ‘NOT for sale by owner’ real estate scam.” Lee County sheriff’s and court court records say Kiana Kiara-Alexis Russell, 22, was charged with organized fraud, money laundering and aggravated white collar crime involving the government and $50,000 or more, and money laundering.

› More startups push into Tampa Bay’s competitive housing market
For nearly a month, Julie Youngblood has been traveling across Florida to meet with real estate agents. She’s helping the Austin-based company Homeward — which pays cash for homes upfront while homebuyers finalize their own financing — launch in the state’s hot housing market. From city to city, Youngblood trained local Realtors on this alternative home-buying method meant to help people compete against cash-flush investors.

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