Florida ranks among top 10 states of America’s most stable housing markets
Location remains the most important factor in real estate, despite the nation market sailing strange tides. Mortgage rates are nearly double what they were a year ago -- an expected side effect of the Federal Reserve’s attempt to curb inflation. But they have also been volatile, including some sharp declines from week to week. Home prices are stuck at historic highs with bidding wars reported in some areas, even as the inventory of homes for sale begins to grow and housing markets across the country. [Source: CNBC]
Rent increases begin to cool across Florida metros, according to Redfin report
Rent increases tapered off in June, with the easing of prices reaching three Florida metros. Redfin latest analysis reports the national median asking rent rose 14% from a year earlier — the smallest annual increase since October. The real estate brokerage also noted rents were up 0.7% from May, the smallest month-over-month gain since the start of the year. Here in Florida, Miami, Fort Lauderdale, and West Palm Beach all fell out of the top 10 fastest-rising rents year over year last month, as rental increases in the state's metro areas began to moderate. [Source: The Capitolist]
Homebuyers backing out of contracts as interest rates rise
Rising interest rates deter potential homebuyers who are opting to stay put. A lead senior agent with Redfin reports many potential buyers are backing out of deals because of interest rates. Redfin reports show roughly 60,000 home purchases nationwide fell through in June. Nearly a quarter of pending sales were cancelled in the Orlando Metro Area. “People are not pleased when they see ($3,000) mortgage per month versus their original quote, which would have been at ($2,100 or $2,200).” [Source: WKMG]
Could the cost of renting a home in South Florida actually be coming down?
Sasha Kraver of Douglas Elliman real estate has noticed a downward shift in the rental market lately -- with some rents a few hundred dollars less. On Reddit, apartment hunters have reported seeing lower rents – some down by as much as $200-300 from two weeks ago. Rent.com show asks for one-bedroom and two-bedroom apartments in West Palm Beach trending down to the tune of $280 and $100/mo. Respectively [Source: WPTV]
Here’s what happens to renters after developer converts Miami apartment tower to condos
Prospective apartment tenants at Property Markets Group and Greybrook’s downtown Miami tower have restarted their housing search after the developer decided to instead sell the units as condos. The developers returned their deposits, offered to give the prospective tenants the equivalent of one month of rent, and told brokers they would pay their commissions. [Source: The Real Deal]
› Bridge Industrial buys 26 acres near Miami-Dade airport [South Florida Business Journal]
Bridge Industrial paid $15.6 million for a development site near Miami-Opa Locka Executive Airport. The buyer said it plans to deliver an industrial project there by early 2024. It’s on a ground lease from Miami-Dade County.
› Curtain call: Sheridans shelve plans for Northwood performing arts center, looking elsewhere [Tallahassee Democrat]
The foundation and its volunteer board of directors are continuing to search for other sites. The backers of a performing arts center who wanted to secure a spot at Northwood Centre are pulling out of the deal over a land dispute and differences in control of the site with the city.
› South Florida foreclosures more than double [South Florida Business Journal]
Foreclosure filings soared 147% year over year in South Florida for the first half of 2022, according to Irvine, California-based property data company Attom. There were 5,303 foreclosure filings in the tri-county area in the first six months of the year. That’s a rate of one filing for every 498 homes, the 26th-highest foreclosure rate in the nation.
› FAU study tracks a real estate slowdown [WPBF]
In areas such as South Florida, where people are moving in and construction is constrained, Johnson expects prices to hold steady. The housing market has been hot through the pandemic... But researchers at Florida Atlantic University and Florida International University, who have been looking at both rental and home prices for months, say they are seeing a change on the horizon.