December 5, 2022
Businesses face the brunt of a housing market slowdown in Florida

Florida Trend Real Estate

Businesses face the brunt of a housing market slowdown in Florida

| 11/14/2022

Businesses face the brunt of a housing market slowdown in Florida

Businesses tied to the real estate industry say they’ve started to feel the effects of the housing market slowing down in Florida. Feeling the brunt of a declining market are mortgage lenders, inspectors, appraisers, real estate agents and remodeling companies, among the list of businesses. “It’s a ghost town,” says Bruce Gubnitsky, the owner of BG Appraising and Consulting, of the “steady decline” in business. The housing market is a large driver of the economy, and one sale alone can trigger multiple transactions and deals with other businesses, studies have shown. [Source: South Florida Sun-Sentinel]

After Hurricane Nicole, condo owners grapple with living beachside

As of Friday evening, Volusia County had ordered the evacuation of 27 condominiums and hotels, 22 of them in Daytona Beach Shores and five in New Smyrna Beach. They had been compromised by broken sea walls and water intrusion, leading authorities to evacuate thousands of residents, according to county officials. An additional 30 homes in Wilbur-by-the-Sea, an unincorporated community just south of Daytona Beach Shores, were teetering on the edge of the dunes. [Source: New York Times]

Higher borrowing costs cool South Florida’s sizzling multifamily market

South Florida has been one of the hottest rental housing markets in the nation. But even in sunny Miami-Dade, Broward and Palm Beach counties, higher interest rates have cast a shadow on debt-funded acquisitions of apartment buildings and multifamily development. Despite the fundamental strengths of South Florida, including low unemployment and a growing population, the five interest rate hikes by the Federal Reserve from March through September are proving to be tough hurdles. [Source: Commercial Observer]

How will midterm election results impact the real estate market?

The election results so far have been much closer than many expected, even if the GOP ends up controlling one or both houses of Congress. If that happens, the U.S. real estate market could be impacted in a few different ways, according to a new report from Cowen. Cowen analyst Jaret Seiberg wrote that a Republican-led House likely means the end of the first-time buyer tax credit. Regardless of who controls Congress, you can expect lower premiums for Federal Housing Administration (FHA) loans. [Source: MSN]

South Florida luxury properties continue to rise in value while total transactions dip

Prices continue to increase for South Florida’s high-end real estate, even as the number of total transactions has slowed, The Keyes Company and Illustrated Properties third-quarter luxury report showed. Miami-Dade, Broward and Palm Beach counties, the Treasure Coast and Southwest Florida collectively recorded a 15.3% year-over-year drop in total sales of single-family homes worth $1 million and up in the third quarter of the year. Luxury condo sales also saw a year-over-year decline of 33.5%. [Source: South Florida Agent]

STAT OF THE WEEK
1.5%
A typical Bay County home listed for $448,000 in October, down 1.5% from the previous month's $454,600, an analysis of data from Realtor.com shows. [Source: Panama City News Herald]

ALSO TRENDING:

› North Port-Sarasota market called ‘microcosm’ of real estate trends
The third fiscal quarter is over and the number of homes for sale is increasing. Redfin, a real estate company that tracks home sales and construction, said the number of new homes built to meet the housing demands of the United States have gone up 29%, for a record high. America’s 29% new homes built from July to September is a 25% increase from the year before, when just 4% of homes were newly built to purchase. Of the areas that had the most homes built for those moving in or around, the North Port-Sarasota metropolitan area was in the top 10.

› Orlando home sellers get frustrated as market hits the brakes
Real estate agent Kimberly Ann Zeidner says she understands the frustration of her clients trying to sell homes. One house, purchased last year as an investment property, has sat on the market for four months. “[Appraisers] say it’s priced correctly,” Zeidner said. “But the buyers’ market is saying otherwise.” Orlando homes were selling nearly as fast as sellers could list them during the hot housing market of the past two years. But as interest rates have risen and investors have pulled back, listings are starting to pile up, and experts say sellers need to start upping their game.

› New luxury condos planned for Delray Beach along Federal Highway
In a continuing trend of new projects along North Federal Highway, a three-story, 41,000-square-foot luxury condominium building is in the works. The North Edge will feature nine condos ranging between 2,000 square feet to 3,080 square feet. The development, which is planned for the southeast corner of North Federal Highway and Lake Avenue, will have two units with two bedrooms, six three-bedroom units and one four-bedroom unit.

› St. Petersburg landlords now must give tenants written notices of rent increases
Landlords who plan on increasing rent more than 5% must give written, advance notice to the tenant or face a fine, according to a new city ordinance. The City Council unanimously voted Thursday on the new rule. Landlords must give 60 days’ notice for leases one year or longer, 30 days’ notice for three months to a year, or 21 days’ notice for a month-to-month lease. If not, they could be fined $300 for the first offense and $500 for any subsequent offenses.

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