Here in Arizona, it’s such a paradox right now. On one hand, the available inventory listings are climbing the fastest they have in 5-10 years, but on the other hand, ppl are still buying houses at near all-time highs and with near record interest rates. Also, on a side-note, a lot of ppl from out of state still moving in and paying cash. Wild times!
@@renelopez2244 Everyone? That's a BIG assumption! Housing, like most commodities, experiences a reversion to the mean, especially when there are no more buyers!
@@Countdemonet1234 If you buy a home to live in then you got nothing to worry (unless you get fired the next day) about when home price drops (if anything, you pay less property tax) Now if you buying a home now just to flip it later then good luck.
Interest rates are not the issue. The real problem is the asking price. Prices need to return to 2021 levels, which would require a 40% to 50% reduction.
I've got a feeling people might not even be able to afford 2021 levels. Even if rates come down, and prices go to 2021 levels there are a few big issues. 1.) Rates come down supply increases even more as people who wanted to move can now find a decent rate elsewhere. More inventory, lower prices. Also, historically prices drop with rate cuts. 2.) This is the bigger issue. People are completely tapped out. A lot of people can't afford all the HOA increases, insurance increases, and COL increases. These people are forced to sell thus lowering the prices. There are a lot cheaper places to live in the states than Florida. For example, NC grocery stores are on average like 20% cheaper for the same products. And there's cheaper places for retirement outside the states. People will have to adjust.
Nearly 56,000 home-purchase agreements were canceled during June - equal to 14.9 percent. It was the largest percentage of last-minute withdrawals by potential purchasers during any June on record. Hefty costs of insurance, property taxes and HOA fees, in addition to the cost of their mortgage payment.”
@@jacinedelarosa6302 the highest number of all time literally provides as much context as you could possibly have. It's higher than any recorded number. Im confused by what context you're looking for.
Florida homes are tied to HOA fees and crazy increases in insurance! Honestly prices will crash in Florida even of the rest of the country doesn’t.. HOAs is the biggest threat to home values in Florida
It is strange how the huge increase in living expenses has not taken a bite out of home prices. At this point, I believe employment is keeping home prices propped up. People still appear to be working and still can extend themselves at these interest rates. A drop in employment rate, along with a drop in overall jobs are the only things I can imagine that will drop these extrodinary prices.
I lived here all my life and my father was born in south Fl. In 1918. Of course there were always bad hurricanes but not so many people or housing developements. More expensive house, more concrete and less place for drainage equals more damage. I don't think the storms have higher intensity just more stuff to damage.
The problem with Florida is insurance is crazy, hoas everywhere, and hurricanes. And the worst part is even more so than other places salaries don't keep up with COL. And you have a lot of seniors who are on fixed income. Something has to give, and it'll have to be price. You have properties that are 4x what they were in 2014. I don't expect prices to drop half, but I wouldn't be surprised at a much larger correction than the rest of the country.
I can only afford the 2020(or earlier) average. My eages have not gone up 50% like the average home price has. So I am all in for a steep market correction into the red.
People are freaking out that inventory is at 4.6 months of supply. Wait until it goes above the 6 month mark and beyond. 6 months of supply historically is the number where it is balanced. Once it hits over 7, you will see a price freefall.
Other than the increase in inventory, all the other metrics appear like normal random variation. Doesn’t seem at all like a crisis in Florida housing market.
What people don't understand is how dependent housing in Florida is on the stock market... If the market remains flat or goes down, Florida market will totally collapse... 50% minimum!!!
I always find these % increases interesting. I know several people, 1 a close friend bought a home in Sep 2019 for 89k 2 years later sold it for 205k had a home built and bought for 260k, he just sold it for 380k 2 years later and moved in with his in-laws
@@leonoremoore1159 Its been insane the amount of people moving here, constant building of home communities and apartment buildings. Markets dictate the prices. But they’ve built too much and prices are now too high so thank God prices are going to have to come down.
I live in Kendall and there was an open house recently in my community. The realtor was standing outside by the entrance of the community and not in front of the house. A few hours later, I looked outside and still saw him standing outside sweating by the community entrance, I’m quite surprised.
No surprise here . In some area's of Florida especially anywhere near water . Your Property Insurance can be almost Half as much as your Mortgage Payment . A lot of people simply can no longer afford to own a Home in the Sunshine State because of it .
but they won't lower the price, so it doesn't matter too much for average people. I did some redfin search, everything is still very expensive. You still have to pay for hoa, double the property tax compare to 5 years ago, and super high Florida insurance
Housing supply is at the highest level for a June since at least June 2016 and sales at the lowest level for a June since at least 2016. What’s normal about that?
Typically it would be a balanced market but at this delta of inventory change, it’s evident that there ain’t enough buyers to absorb the new inventory coming into the market
Outstanding content Jason. I would appreciate it if you could do one video focused on south country of the Bay Area ( Morgan Hill and Gilroy). Prices are still extremely high given majority tech companies in the Silicon Valley are mandating RTO all 5 days a week. I wonder why prices are still so high in Gilroy Area given the commute is terrible to Silicon Valley. Your insight on this matter would be greatly appreciated.
i was looking at the financial statements of a few condo's and noticed that the building fire insurance renewed on jan 1 of every year and was wondering how common that is for them to use the calendar year. It would seem to me that it makes it easier for the hoa accountants. With all the talk of fire insurance doubling on condo's i'm thinking of waiting until after jan 1 to start looking at condo's in my area. Has anyone received notification from the association of a big increase on insurance in the middle of the year?
Where do you all get your numbers??? 😂. Homes have DOUBLED in price at least. So they increased 100%+ the last 3 years, not the 40-50% y’all keep trying to say
Is now a good time to buy? Prices increased significantly. I remember driving and seeing houses for $70.000 to $110.000 in 2010. Same houses is now $250.000 to $400.000. Will the market go back down. If I buy a house now, do it have a chance of losing value??? If the market crashes.
