Florida's condo market looks shaky. Could the bottom fall out?

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The median sales price of a condo in the state of Florida fell 1.3% in July. Is this a sign of things to come?

at the end of last month, noting that condo prices were falling year over year in 18 metros in the state., CEO of Reventure Consulting, a real estate analysis firm, showed that the estimated value of a St. Petersburg, Fla., condo was 41% below its pandemic peak.

Still, despite the state's well-known boom-and-bust real estate cycles, there's no condo wipeout on the horizon like that of the early aughts, experts say. "They want to lock into a lower interest rate," Tony Baroni, CEO of the Tony Baroni Team for Keller Williams, said. "Condo fees are rising $500 or more each month or there's a one-time cutting of a check up to $10,000," Yun said. "Many retirees who don't have access to funds are forced to list their properties to get out of it."

"Those buildings where we have excessive assessments, it certainly affects price," said Ron Shuffield, CEO of Berkshire Hathaway HomeServices EWM Realty in Southeast Florida. "A buyer has to allocate a certain amount a month for work. Only way to balance that is in the price."Of course, the regulations only pertain to older buildings, Shuffield pointed out, noting that pricing on newer buildings and those in development may not be affected as much.

There won't be nearly as many distressed sales flooding the market. There were only 47 condo foreclosures and three short sales in all of Florida in July.

 

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