Florida RE bubble 1920's eerily similar to present day.

[coolweb]

Quote from Toro KMA:



It does not matter what the comparative prices are in other places. Comparing FL real estate with NYC real estate is a false comparison. That's like comparing two stocks based on price. Simply because one stock is worth $100 and another stocks is worth $90 does not tell you if one or the other is over-valued. You have to look at earnings.

When the market falls, every blue chip, sun chip, green chip, will fall eventually because of fear/liquidty. The bluechip might be slower to fall but eventually.

 

[daddyeaux]

the bitch about Fla. is the average JoeSixPack cant spring for expensive homeowners and flood ins.

add that to 20% down and it's a no go.....

prime RE here in Texas is turning down hard........

 

[arealpissedgoy]

Floriduh aka hurricane central is way over valued. So is the rest of the US.

Anyone buying real estate at current prices is buying near a multi-generational market top.

The price drop should escalate as weak specs wise up and stop paying for their spec mortages.

http://housingdoom.com/2007/07/30/cramer-says-walk-away-from-underwater-homes/

 

[Toro KMA]

The other thing is that taxes are soaring.

The way taxes work in Florida is that they cannot go up by more than a set rate each year - I think its 3-4% - even if the property rises much more. However, the tax rate reverts to the market price when a property is sold. So, because property has risen so much, if you have been in a home for some time, your property taxes will skyrocket if you decide to move from your house to a new one. And the differences can be astonishing. I have heard that on the same block, someone will pay $3000 in taxes and his new neighbor in a house the same value will pay $8000.

As you might imagine, this effects the desirability to buy and sell homes.