Broward home prices fall 20 percent in June

And the SOH scheme, which has pretty much crucified an already half dead market. SOH is the death knell for FL RE, it takes a horrible situation and just juices it to the next level. Is there anyone stupid enough to buy in FL anymore when you know, without a shadow of a doubt, that you will be setting yourself up as a tax victim for the rest of the time that you own (forget the likely loss you will take on the unit).

SOH is what will make FL fall further, faster, harder, and longer then all the other crazy overbuilt markets (NV and CA come to mind).

Underwater wrote:

<quoted text>
Once again..you need to realize it isnt just the SS..the whole USA knows to stay away from Florida..with bad housing,schools,crimes,high inflation and high unemployment..time, newsweek and WSJ carry our demise to the world...
Forget about Snowbirds..they are being woed by other states and other countries..no one has a desire to RETIRE in Florida..anymore..the 50's mentality is dead..

Please show us some of these listings. I haven't seen condos that will cash flow yet, but, I admit, I haven't been looking that hard. If you can get 1% of purchase price per month, that's a cash flowing condo. Otherwise, even though it might pan out on paper, it's a bad investment. The uncontrollable tax burden, the HOA nightmares, the renter nightmares, plus empty (vacant) months will eat you alive in a market like this.

I don't see any condos selling for 200K that will rent for 2K a month. I'm very willing to see what you're seeing, but I just don't think that we are there yet.

Chief Takes-Ur-Money wrote:

<quoted text>
I have purchased. If you think I'm running a scheme here - do your own research. The going rental rate for condos right now is approximately 30% higher than the mortgage/insurance/taxes/hoa on the same unit.
Go look for yourself. This is a time to buy. With so many people unable to get approved/buy a home - the rental market will continue to rise, and rents will stay relatively high. Those who can afford/have the credit to purchase should be buying.
I'll pick up a couple rental condos very soon.

Buying when interest rates are low is never a good idea. When interest rates are low, prices go higher, the reverse is also true, when interest rates are high, prices go lower.

You want to buy when the price is as low as possible (especially with SOH and portability to figure into the psychotic mix), which probably means interest rates are higher. You can then refinance when the rates drop and keep your lower price, just pay less in interest, taxes, insurance, and have a much smaller loan.

A high interest rate environment is typically a good time to buy; however, the flip side is that once you've spent 500K on a home, you can "refinance" you way down to a 250K loan (well, forgoing the crazy govt programs to help the "trapped borrowers" that we currently have).

The time to buy is when the price is the lowest; forget the interest rates. Once the prices bottom, buy what you can afford (using a fixed rate loan). If/when the rates drop, refinance and actually gain back some of the money you were spending on interest.

VapeBHO wrote:

Don't see much mention of interest rates on any of these discussions, and if you're paying attention, they are going up.
If you buy a house now, for 250k at 6.25%, your principle and interest will be about 1500 a month.
If prices drop another 20% over the next year, but interest rates go up 2%- 200k at 8.25, your principle and interest will be about 1500 a month.
Unless you're paying cash, it would be wise to keep an eye on both #'s - when the interest rates start going up faster then the prices are coming down......

Seems like the only property going up in Vaule in Brevard County is the undevelopable land owned by ,you guessed it, Developers. Especially the developers with political connections who can get the EEL to buy it from them at 9 times the price they paid 6 months ago. Where the Hell is our State Attorney? If he can not prosecute this corruption he should be thrown out of office or investigated for legal malpractice or honest services fraud.

What happened to the days when you bought a home to live and not try to "time" the market like a penny stock?

This real estate market is disturbing.

Why should I time the purchase of a house like buying shares of stock?

the housing market should have a trading platform like soybeans or copper in the current times

Mike Fink wrote:

Buying when interest rates are low is never a good idea. When interest rates are low, prices go higher, the reverse is also true, when interest rates are high, prices go lower.
You want to buy when the price is as low as possible (especially with SOH and portability to figure into the psychotic mix), which probably means interest rates are higher. You can then refinance when the rates drop and keep your lower price, just pay less in interest, taxes, insurance, and have a much smaller loan.
A high interest rate environment is typically a good time to buy; however, the flip side is that once you've spent 500K on a home, you can "refinance" you way down to a 250K loan (well, forgoing the crazy govt programs to help the "trapped borrowers" that we currently have).
The time to buy is when the price is the lowest; forget the interest rates. Once the prices bottom, buy what you can afford (using a fixed rate loan). If/when the rates drop, refinance and actually gain back some of the money you were spending on interest.
<quoted text>

you say the time to buy is when the price is the "lowest possible".

how in the lords name can you or anyone else tell me when the "price is the lowest possible"?

do you have a cyrstal ball? or perhaps magical powers to predict the future? please enlighten us all when "the price has hit the lowest possible", we would all love to know and cash in on this.

while your at it tell me when ford or Gm stock has hit "the lowest possible price", I'll put every penny I have into it then. Thanks for the profound wisdom.

Mike Fink wrote:

Buying when interest rates are low is never a good idea. When interest rates are low, prices go higher, the reverse is also true, when interest rates are high, prices go lower.
You want to buy when the price is as low as possible (especially with SOH and portability to figure into the psychotic mix), which probably means interest rates are higher. You can then refinance when the rates drop and keep your lower price, just pay less in interest, taxes, insurance, and have a much smaller loan.
A high interest rate environment is typically a good time to buy; however, the flip side is that once you've spent 500K on a home, you can "refinance" you way down to a 250K loan (well, forgoing the crazy govt programs to help the "trapped borrowers" that we currently have).
The time to buy is when the price is the lowest; forget the interest rates. Once the prices bottom, buy what you can afford (using a fixed rate loan). If/when the rates drop, refinance and actually gain back some of the money you were spending on interest.
<quoted text>

So many aspects in buying need to be considered before contemplating the purchase of a home bought as a residence. Is the borrower's income relatively stable, is the job secure, what can be the highest PITI payment considering taxes will typically ratchet upwards and insurance premiums have the possibility of doubling or tripling as a result of damage from tropical systems. Credit scores and financial history are also important. Can the borrower even qualify for a fixed rate mortgage loan? Those issues should be resolved before a borrower even begins to hunt for a home. Other items that need to be considered are current debt, future debt (children for example), intent to remain in the same residence for a period of time (in other words buy or rent).

Borrowers with "less than perfect credit" commonly known as subprime proabably shouldn't waste their time with the American Dream. Lenders have no interest in those borrowers anymore......finally.

Once the potential buyer has reviewed all of the above checkpoints, the evaluation of the real estate market, interest rates, loan availability can be looked at. There are many loan calculators online that help decide what is affordable.

Knowing when to buy is always a crapshoot. A number of experts will tell us that we should buy when prices are lowest and interest rates are lowest as well. Who would've guessed that?

its not because of the real estate crash, its because of the minoritys.

What happened? I thought the tax cuts were going to save the real estate market. Now you jerks have killed the rest of our society with your ridiculous tax cuts. Schools, police, fire, hospitals and other government services are cut beyond the bone. Now it sucks here.

Mike Fink wrote:

Buying when interest rates are low is never a good idea. When interest rates are low, prices go higher, the reverse is also true, when interest rates are high, prices go lower.
You want to buy when the price is as low as possible (especially with SOH and portability to figure into the psychotic mix), which probably means interest rates are higher. You can then refinance when the rates drop and keep your lower price, just pay less in interest, taxes, insurance, and have a much smaller loan.
A high interest rate environment is typically a good time to buy; however, the flip side is that once you've spent 500K on a home, you can "refinance" you way down to a 250K loan (well, forgoing the crazy govt programs to help the "trapped borrowers" that we currently have).
The time to buy is when the price is the lowest; forget the interest rates. Once the prices bottom, buy what you can afford (using a fixed rate loan). If/when the rates drop, refinance and actually gain back some of the money you were spending on interest.
<quoted text>

I stand corrected and gotta agree with you 100%. I'm a perfect example - bought for 159 8 years ago at 8 1/4% 30y fixed - refinanced twice and am down to 5 7/8% 30y fixed.

People buy based on what they can afford a month - with those interest only and 1-2% loans, no wonder prices doubled and tripled...same monthly payment....except for the taxes and insurance people forgot to think about.

Lastly, by this logic, as interest rates continue to rise - prices are going to keep falling.

As someone with some cash on the sidelines...this could get interesting.

Oh, and to everyone asking where the bottom is - it's a total guess. Best bet is to wait for 2 quarters of sales/price growth. You'll be a % or 3 above the bottom. Close enough - I'd rather buy 5% above the bottome, then guess wrong and drop 30%.

Mike Fink wrote:

Please show us some of these listings. I haven't seen condos that will cash flow yet, but, I admit, I haven't been looking that hard. If you can get 1% of purchase price per month, that's a cash flowing condo. Otherwise, even though it might pan out on paper, it's a bad investment. The uncontrollable tax burden, the HOA nightmares, the renter nightmares, plus empty (vacant) months will eat you alive in a market like this.
I don't see any condos selling for 200K that will rent for 2K a month. I'm very willing to see what you're seeing, but I just don't think that we are there yet.
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Mike,

Where I live is a good example. I purchased a 2/2 for $80k - about 60% cheaper than what the same units were selling for just LAST year (with seller paying closing costs)- the going rent is $1100 here and it's a pretty nice area/neighborhood - and thats for the non-renovated units, I could pull $1150 -$1200 easy for mine.. my costs (HOA/Mortgage/Taxes) is about $850... so I could easily pull a minimum $250 -$350 cashflow off this unit. And my rate is only 5.75

You can buy into a bad situation (bad HOA's, bad neighborhoods, etc.) but the winning units are out there if you look hard enough. You need to find the older sellers who have had their units for 30 years and need to get out, they carry no mortgage and sell for pennies happily.

Anyways, I'm hunting for more units, I have my personal one, I want some rental properties... I'll probably reinvest all positive cashflow off them back into the principle as well.

There are a LOT of bad options out there when it comes to buying, I'm not claiming people should be buying up everything, now more than ever homework and research is so important... but interest rates are decent (for now) and prices are WAY low.

confused wrote:

<quoted text>
you say the time to buy is when the price is the "lowest possible".
how in the lords name can you or anyone else tell me when the "price is the lowest possible"?
do you have a cyrstal ball? or perhaps magical powers to predict the future? please enlighten us all when "the price has hit the lowest possible", we would all love to know and cash in on this.
while your at it tell me when ford or Gm stock has hit "the lowest possible price", I'll put every penny I have into it then. Thanks for the profound wisdom.

Being able to predict the "lowest possible" and "best time to buy" is something that makes people wealthy. Your post is outright ignorant.

What do you think makes someone a great investor?

I've been saying it for a 2 months now. Right now is the time to buy SUB $100k condos (in the right neighborhoods, good HOA's, etc.)-- because if you research it, the rental rates are about 20-30% higher than the cost to buy, people are plucking them up like crazy = lot more buyers equals stabilized pricing and possibly increase in pricing and interest rates are climbing. This is a golden time... low interest rates AND low home pricing...

For more expensive homes, I'd continue to wait, especially the $300k+ priced ones, they will continue to drop drastically, as people with money are moving out of florida, so less buyers equals lower pricing on the housing.

It's simple, do research and use common sense. But don't act like an ignorant fool on forums.

Great. Now if only there were jobs to be had.

Chief Takes-Ur-Money wrote:

<quoted text>
I have purchased. If you think I'm running a scheme here - do your own research. The going rental rate for condos right now is approximately 30% higher than the mortgage/insurance/taxes/hoa on the same unit.
Go look for yourself. This is a time to buy. With so many people unable to get approved/buy a home - the rental market will continue to rise, and rents will stay relatively high. Those who can afford/have the credit to purchase should be buying.
I'll pick up a couple rental condos very soon.

I am looking for myself, and the only places where that is true is in the ghetto. As for you picking up rental condos, unless you're paying cash, you won't be able to get the financing to pull it off. So quit yer lyin' right there.

Mike Fink wrote:

Please show us some of these listings. I haven't seen condos that will cash flow yet, but, I admit, I haven't been looking that hard. If you can get 1% of purchase price per month, that's a cash flowing condo. Otherwise, even though it might pan out on paper, it's a bad investment. The uncontrollable tax burden, the HOA nightmares, the renter nightmares, plus empty (vacant) months will eat you alive in a market like this.
I don't see any condos selling for 200K that will rent for 2K a month. I'm very willing to see what you're seeing, but I just don't think that we are there yet.
<quoted text>

He's lying-- I know because I have been blanketing the area for that very range ($150k-$200k) and trust me, everything out there is nowhere NEAR the rental marker-- unless it is in the ghetto or has no HOA-- which is usually the ghetto.

Chief Takes-Ur-Money wrote:

<quoted text>
Mike,
Where I live is a good example. I purchased a 2/2 for $80k - about 60% cheaper than what the same units were selling for just LAST year (with seller paying closing costs)- the going rent is $1100 here and it's a pretty nice area/neighborhood - and thats for the non-renovated units, I could pull $1150 -$1200 easy for mine.. my costs (HOA/Mortgage/Taxes) is about $850... so I could easily pull a minimum $250 -$350 cashflow off this unit. And my rate is only 5.75
You can buy into a bad situation (bad HOA's, bad neighborhoods, etc.) but the winning units are out there if you look hard enough. You need to find the older sellers who have had their units for 30 years and need to get out, they carry no mortgage and sell for pennies happily.
Anyways, I'm hunting for more units, I have my personal one, I want some rental properties... I'll probably reinvest all positive cashflow off them back into the principle as well.
There are a LOT of bad options out there when it comes to buying, I'm not claiming people should be buying up everything, now more than ever homework and research is so important... but interest rates are decent (for now) and prices are WAY low.

Name the specific property and city you bought in.

M Hersh wrote:

The question being asked is "when should you buy...???" well, I am Canadian and live in Canada and I just recently purchased a second home in the Fort Lauderdale area through my Realtor - Rob Rose. I can tell you factually, that I did receive a great deal. I purchased a new construction condo for a purchase price significantly less than it was selling for before the real estate boom started. That is what I call a deal!!!

You're one of the awholes screwing up the area!

Where are all the realtors who said "Amendment 1" was going to save the real estate market in Florida? They said if we vote "YES" we wouldn't be stuck in our homes and we could sell and move on - and take our homestead with us through portability!

How is that working for us now Mr. Realtors?

Taxes aren't the problem - you idiot realtors were the problem. Over inflating the market and getting mortgage brokers to give people shady deals.

Take your Amendment 1 and pound salt. The only thing it did was make it more painfully obvious that local politicians are more oblivious to what is actually happening that we actually thought.

Nuts wrote:

What happened? I thought the tax cuts were going to save the real estate market. Now you jerks have killed the rest of our society with your ridiculous tax cuts. Schools, police, fire, hospitals and other government services are cut beyond the bone. Now it sucks here.

Hire more Mexicans! Mexican doctors will work for $35K/Yr. Mexican Brain Surgeons cost a little more. Mexican firemen will work for about $20K/Yr.

The Anti-dope wrote:

<quoted text>
He's lying-- I know because I have been blanketing the area for that very range ($150k-$200k) and trust me, everything out there is nowhere NEAR the rental marker-- unless it is in the ghetto or has no HOA-- which is usually the ghetto.

Your problem is that you are blanketing the area in the $150-$200k range, I have said over and over, SUB $100k is where the money is at right now.

You will get the same rent on a $175k condo as you will on a $75k condo right now. You cut out 3/4 of the renters when you get up and over the $1200 range and no one will pay $1800-$2000/rent for a $175k place right now... however, efficiencies are still $600 so a 2/2 can easily fetch $1000+.

Do your research... you need some more real estate lessons?