Wednesday, March 27, 2024

Florida Condo Sales and Prices Fall Due to Insurance, Association Costs, Redfin Says (Insurance Journal, March 18, 2024)

 Climate change, ocean level rise and high prices for insurance in an oligopolistic market are root causes.  Naturally, the insurance industry continues to spew propaganda.  NPR continues to feature insurance industry PR reps, as recently as last Friday, March 22, when the statewide Florida NPR weekly news program had only an insurance flak speak on insurance, just as our local NPR affiliate, WJCT, has done in the past.  Wonder why?  From Insurance Journal:

Florida Condo Sales and Prices Fall Due to Insurance, Association Costs, Redfin Says 

Insurance Journal, March 18, 2024

Condominium sales and prices in Miami, Jacksonville and Tampa and other parts of Florida have dropped over the past year, largely due to the soaring cost of property insurance and association fees, according to Redfin, a U.S. real estate and tracking service.

“The average cost of homeowners insurance across Florida increased by about 40% in 2023 alone, according to reports, and homeowners association (HOA) fees are multiplying for many condo buildings,” the Redfin report said. “In addition to slowing demand, the rising cost of insurance and fees are pushing prices down.”

The report is not surprising to insurance brokers and agents, who have seen some condominium associations’ property and liability insurance premiums quadruple, while policy limits have been slashed in Florida’s still-distressed market.

Legislation that would help to some degree, by allowing surplus lines to cover more condo associations, is still pending in the Florida Legislature. Senate Bill 1716 and SB 1503 were approved by second Senate committees in February. An effort to allow the state-backed Citizens Property Insurance Corp. to insure condo buildings with rental units has faced opposition from Citizens and has been left out of bills.

Another bill, creating a pilot program to provide wind-mitigation grants for condominiums, appears to be headed for passage this year, but it would apply only to buildings that are three stories or less.

Redfin’s data show that Florida condo prices and sales have fallen while prices have risen by 8.4%, on average, for the United States overall, from January 2023 to January 2024.

In Jacksonville, Florida, the recent median sale price for a condo was $254,000, a 6.5% drop from the previous year. Condo sales in Jacksonville showed the biggest drop for major Florida metro areas, falling more than 27% from the previous year, Redfin noted.

In Miami, the median price dropped 2.5% and sales fell 8.7%. The Orlando area saw prices drop 4.8% but sales rose by more than 6%. In Tampa, the median price declined by just 1% but sales slipped by 4.4%, the report noted.


Martin said...

HAHA... they've grifted just about all they can grift and the people are starting to be soured. HOAs, insurance costs, high rent and overpriced housing, not to mention lower property taxes only cause some other Billy the Bamboozler to swoop in and take the money by some other grift. When will the GOP understand that governing is beneficial? When will all these idiots stop voting for those crooks?

Tim said...

Why don't they build a bridge from A1A Porpoise Point across to Anastasia Island connecting A1A? How many decades have they had to do that? What the hell is wrong with these people in this county? Are they waiting for private enterprise to do every single thing imaginable or something? Who the hell is going to build that bridge? Couldn't even get big hog Rick Scott to get high speed rail going. Throwing people in jail is all these crackers do!!

Ed Slavin said...

What public benefit from destroying historic neighborhood? What would be waste, fraud and abuse. Bert J. Harriss, Jr. Private Property Protection Act and Fifth Amendment takings law applies, right? Thus, I reckon your suggestion is, at best facetious.