Insurance, Tax Woes Make Florida Housing Market Recovery Harder

Anyone banking on a quick end to the slow Florida housing market is likely to be disappointed, according to a Florida Today editorial.

Florida housing market experts say it might be months, a year, or more before sales pick up - and they’re just giving their best guess.

Meanwhile, buyers continue to balk at home prices that don’t reflect the current economic situation.

Brevard County’s 483 home sales in May were down 26 percent compared to May 2006.

The median price fell 16 percent to $190,400 over the same time, the Florida Association of Realtors says.

Sales and prices fell in varying amounts across the state.

Nationwide, they’re off 10 percent from May of last year, with the median price down for 10 straight months.

Those national numbers can hamper the local market even more, because many out-of-state buyers are stuck.

If they can’t sell there, they can’t buy here.

With the housing market making up a big chunk of the Florida and the Space Coast economy, the drag in sales makes a tough story - and the Florida mortgage market has it a tougher than most.

In two special sessions, Gov. Charlie Crist and the Legislature have failed to carry out promises that could have gotten the important housing market moving again:

• On property insurance, consumers still are getting socked with bills of $2,000, $3,000 and more, and rates are rising, not falling.
• Tens of thousands of policies also have been canceled.
• Not only have the reductions lawmakers promised dwindled to an average 12 percent, but last week, 13 companies filed for even more rate increases, some of which would wipe out previous discounts.

Beyond that, policyholders are on the hook for big surcharges if a major hurricane hits and state-run Citizens insurance can’t cover the claims.

The Legislature’s recent property tax reform “fix” has fallen far short of the big talk, providing an average savings of just $174 on this year’s tax bill.

Buyers are wary about the future, as voters won’t decide until Jan. 29 whether to approve deeper cuts. In short, Crist and lawmakers didn’t deliver.

And now, with the highest housing inventory in 15 years nationwide, it’s time for sellers to face facts. The boom is over.

As Jonathan Krauser with RE/MAX Surfside Properties in Cape Canaveral says, properties must be “priced correctly for market conditions” to sell.

Sure, it’s disappointing to Florida home mortgage applicants to know they missed the market peak. But sales go hot and cold and always have.

As for buyers, owning and living in your own home is still most families’ best long-term investment, and a buyer’s market is strongly in your favor.

It’s an opportunity that won’t last forever, so if you’re looking for property, take advantage while you can.

Because when it turns, its turns fast.

SOURCE: Florida Today