You are pretty accurate in your analysis. I used to own property in Florida which I bought at less then half what it had been a couple of years earlier. 2012 versus 2008. Actually way less than half. In Florida price changes of 5 of so percent are nothing. Florida has had major cycles since the boom of the 1920's. Insurance costs and prospect of not getting ANY coverage are creating and will continue to create a major downcycle in prices there. It is and will be a timers market in that location.
"These climate-led pressures are more intense in Florida than they are in most other states."
It seems like Florida & much of the warmer coastal SE Gulf area has attracted so many who feel "Live Free Today!" aka no taxes & regulations. While they act like The Future!? is not our problem...
This mentality makes sense since who would pay so much $$$ for millions of housing units of built on top of sinking swampland. These swamplands are being taken back by Mother Nature via Climate Change & the annual category 4-5 & now cat. 6 hurricanes. While the destroyed housing is rebuilt via Disaster Socialism aka FEMA - the rest of the country pays 10s & even 100s of $Bs...every...single...year. This is not sustainable over the coming decades & genertions....HOI industry is letting us know this NOW! Not in the future...
Adding this to a future issue of the Title Underground newsletter from Wicked Title Forum! Grateful to keep sharing helpful resources from folks who get it.
The cost of housing is going up. I haven't had any insurance premiums go down or HOA dues or property taxes. Material cost and labor for remodels and rehabs has gone up. Biggest increase percentage wise is insurance premiums.
In 2004 it should have been obvious that the market was overheated. It was to me. Loans were given to people that were a high risk. Seems like lenders were attempting to out do themselves in taking risk. Absolutely normal that these would default. Then loans were repackaged with good loans and sold off. Its unfortunate that this happens and since nothing prevents it ... it will happen again as your team seems to at least talk about. Greenspan simply was out of touch OR did not want to be the one to point out what was going to happen and be labeled the "bad guy".
You are pretty accurate in your analysis. I used to own property in Florida which I bought at less then half what it had been a couple of years earlier. 2012 versus 2008. Actually way less than half. In Florida price changes of 5 of so percent are nothing. Florida has had major cycles since the boom of the 1920's. Insurance costs and prospect of not getting ANY coverage are creating and will continue to create a major downcycle in prices there. It is and will be a timers market in that location.
Great analysis as usual!
"These climate-led pressures are more intense in Florida than they are in most other states."
It seems like Florida & much of the warmer coastal SE Gulf area has attracted so many who feel "Live Free Today!" aka no taxes & regulations. While they act like The Future!? is not our problem...
This mentality makes sense since who would pay so much $$$ for millions of housing units of built on top of sinking swampland. These swamplands are being taken back by Mother Nature via Climate Change & the annual category 4-5 & now cat. 6 hurricanes. While the destroyed housing is rebuilt via Disaster Socialism aka FEMA - the rest of the country pays 10s & even 100s of $Bs...every...single...year. This is not sustainable over the coming decades & genertions....HOI industry is letting us know this NOW! Not in the future...
Adding this to a future issue of the Title Underground newsletter from Wicked Title Forum! Grateful to keep sharing helpful resources from folks who get it.
Great piece! Does your chart of housing supply show above average as compared with the state's average supply or the country's average supply?
So overall is cost of housing (including insurance) going down or up?
The cost of housing is going up. I haven't had any insurance premiums go down or HOA dues or property taxes. Material cost and labor for remodels and rehabs has gone up. Biggest increase percentage wise is insurance premiums.
In 2004 it should have been obvious that the market was overheated. It was to me. Loans were given to people that were a high risk. Seems like lenders were attempting to out do themselves in taking risk. Absolutely normal that these would default. Then loans were repackaged with good loans and sold off. Its unfortunate that this happens and since nothing prevents it ... it will happen again as your team seems to at least talk about. Greenspan simply was out of touch OR did not want to be the one to point out what was going to happen and be labeled the "bad guy".
Thank you for this analysis.