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Old 11-01-2023, 07:52 PM
 
3,826 posts, read 5,803,075 times
Reputation: 2401

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Something big is coming to Florida Real Estate market and soon!

With current interest rates being close to 8% it's expected to see drop in house prices. Affordability remains the same so the higher rates are, the cheaper houses will be.

However, people who moved and purchased homes in Florida in 2022 are all getting shocking news this week. They all are receiving their property taxes, and I am sure good 99% of these people didn't expect such increase coming.
I mean some people who bought houses that had $4K property taxes for 2022 are now have to pay $9K. Some who paid $7K in 2022 will have to pay $12K this year. Smaller/cheaper homes that were 1-2K in taxes in 2022 and sold are now 4-6K...

Even these who live out of state and rent their homes will feel huge increase this year. The house we rented 2 years ago had $4500 property taxes. It is $7000 this year. Landlords cannot take advantage of homestead so they see the same increase as these who moved to Florida in 2022 and purchased a house.

I am thinking we will see more houses on the market soon. High inventory will cause prices to do down considering high interest rate in place too. Not to mention HOI crisis in Florida...

What will happen if people won't be able to sell? Nothing good is coming guys.

Thoughts?
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Old 11-01-2023, 08:54 PM
 
89 posts, read 153,445 times
Reputation: 251
Who knows… all I know is price have gotten worse and worse each year. Prices have tripled or quadrupled in some cases since ~2018. I don’t see house prices in Florida ever going back to what they were around then, sadly.

The few recent price cuts I’ve seen really don’t matter considering the asking prices are crazy to begin with. ~300k for 1100 sq ft houses with price drops of 5-10k don’t mean much when they were like 125k not that long ago.
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Old 11-02-2023, 04:24 AM
 
Location: Florida
9,569 posts, read 5,618,697 times
Reputation: 12024
The problem with Florida is that it's not TEXAS and by that I mean it doesn't really have any room to grow.
FLORIDA is probably the most Urban state in the entire South at the moment.
There aren't hundreds of Square miles here to build on like in the suburbs of Houston or Dallas.
Texas is nearly 5 times the size of Florida yet our Population only trails it by a few million.
I seriously doubt House prices will collapse because people keep moving here in droves.
We are not Arkansas.
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Old 11-02-2023, 05:44 AM
 
18,428 posts, read 8,262,327 times
Reputation: 13761
Quote:
Originally Posted by EngGirl View Post
I mean some people who bought houses that had $4K property taxes for 2022 are now have to pay $9K. Some who paid $7K in 2022 will have to pay $12K this year. Smaller/cheaper homes that were 1-2K in taxes in 2022 and sold are now 4-6K...

Thoughts?
I searched the internet and could not find anything even close to those numbers....much much less

...so I'm going to need a link to where that came from
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Old 11-02-2023, 05:58 AM
 
8,005 posts, read 7,213,314 times
Reputation: 18170
I haven't heard of tax increases this high except for recently purchased and reassessed properties. Insurance increases on the other hand, I've heard many stories of doubled YOY premiums. Once the new condo law kicks into gear next year the condo market is toast. That could be good or bad for the single family home market but the witch's brew of high taxes, high insurance, high mortgage rates will definitely be an accelerating headwind for homes. Condos, on the other hand, cannot escape what's coming.
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Old 11-02-2023, 06:27 AM
 
Location: South Tampa, Maui, Paris
4,475 posts, read 3,843,568 times
Reputation: 5323
Quote:
Originally Posted by Bobdreamz View Post
The problem with Florida is that it's not TEXAS and by that I mean it doesn't really have any room to grow.
FLORIDA is probably the most Urban state in the entire South at the moment.
There aren't hundreds of Square miles here to build on like in the suburbs of Houston or Dallas.
Texas is nearly 5 times the size of Florida yet our Population only trails it by a few million.
I seriously doubt House prices will collapse because people keep moving here in droves.
We are not Arkansas.


A lot of smart people are moving to Northwest Arkansas for the quality of life and low cost of living!!!!!


https://www.wsj.com/lifestyle/travel...-cool-3d1d5a56
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Old 11-02-2023, 06:53 AM
 
2,752 posts, read 2,583,485 times
Reputation: 4045
Quote:
Originally Posted by Bobdreamz View Post
The problem with Florida is that it's not TEXAS and by that I mean it doesn't really have any room to grow.
FLORIDA is probably the most Urban state in the entire South at the moment.
There aren't hundreds of Square miles here to build on like in the suburbs of Houston or Dallas.
Texas is nearly 5 times the size of Florida yet our Population only trails it by a few million.
I seriously doubt House prices will collapse because people keep moving here in droves.
We are not Arkansas.

Last I checked only 15% of Florida has been developed. I think we still have room.
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Old 11-02-2023, 07:00 AM
 
17,280 posts, read 22,006,628 times
Reputation: 29601
Quote:
Originally Posted by sinatras View Post
A lot of smart people are moving to Northwest Arkansas for the quality of life and low cost of living!!!!!


https://www.wsj.com/lifestyle/travel...-cool-3d1d5a56
Smart people in Arkansas........Hmmm now I'm really interested in this story
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Old 11-02-2023, 07:05 AM
 
18,428 posts, read 8,262,327 times
Reputation: 13761
Quote:
Originally Posted by sinatras View Post
A lot of smart people are moving to Northwest Arkansas for the quality of life and low cost of living!!!!!
...and it don't get more conservative than Sarah Sanders

dunno...Ozarks Arkansas is known for backward hillbillies
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Old 11-02-2023, 07:15 AM
 
17,280 posts, read 22,006,628 times
Reputation: 29601
Quote:
Originally Posted by EngGirl View Post
Something big is coming to Florida Real Estate market and soon!

With current interest rates being close to 8% it's expected to see drop in house prices. Affordability remains the same so the higher rates are, the cheaper houses will be.

However, people who moved and purchased homes in Florida in 2022 are all getting shocking news this week. They all are receiving their property taxes, and I am sure good 99% of these people didn't expect such increase coming.
I mean some people who bought houses that had $4K property taxes for 2022 are now have to pay $9K. Some who paid $7K in 2022 will have to pay $12K this year. Smaller/cheaper homes that were 1-2K in taxes in 2022 and sold are now 4-6K...

Even these who live out of state and rent their homes will feel huge increase this year. The house we rented 2 years ago had $4500 property taxes. It is $7000 this year. Landlords cannot take advantage of homestead so they see the same increase as these who moved to Florida in 2022 and purchased a house.

I am thinking we will see more houses on the market soon. High inventory will cause prices to do down considering high interest rate in place too. Not to mention HOI crisis in Florida...

What will happen if people won't be able to sell? Nothing good is coming guys.

Thoughts?
Ok, I'll play.

You can't afford to buy anything sooooooooooo if you post something like this it makes you feel superior and smarter for "not buying" and if your prediction comes true then you can buy something!

Here is where history might hurt you:

1. Florida BOOMED in the early 80s despite the rates hitting 18% in 1981 amid crazy inflation. So here we are at 8% and crazy inflation yet the sky is falling?
https://www.bankrate.com/mortgages/h...#current-rates

2. The house I just bought has a $5600 tax bill due yesterday. House is brand new so I'm paying on the dirt lot value only this year. Next year I expect the bill to be $24,000 based on what my neighbors pay. Am I worried...............nope. I sold my last house for 4X what I paid for it and had no mortgage.

3. Just looked, when I sold my last house there were 2 on the market out of 650 homes. Today there are 3 homes listed......... .005% of the neighborhood is for sale up from .003% last year. Whew those kinds of numbers are spooking the market for sure!


Also consider the buyers of my former home moved from NYC and were both high earners. City/State/Federal taxes likely got 45% of their joint incomes (marginal tax rate). Life will be cheaper for them in Florida despite the real estate taxes "skyrocketing according to EngGirl." If their income stays the same, they could save 30K in income tax alone plus their cost of living drops from NYC. There is no deterrent for others like them to move to Florida.
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