Redfin Reports Florida’s Condo Prices Are Falling As Cost of Insurance and HOA Fees Skyrocket
26 2월 2024 - 10:00PM
Business Wire
Florida’s condo market is faltering as the
increasing intensity of natural disasters pushes up home insurance
costs, and HOA fees soar in the wake of the 2021 Surfside condo
collapse
(NASDAQ: RDFN) — Prices of condos in major Florida metros are
dropping year over year, and sales are declining, according to a
new report from Redfin (redfin.com), the technology-powered real
estate brokerage. New condo listings are soaring as sellers try to
offload their properties. That differs from the U.S. as a whole,
where condo prices are rising, sales are holding steady and new
listings are increasing at a much slower rate.
In the Jacksonville metro, for instance, the median condo price
declined roughly 7% year over year in January, sales declined 27%,
and new listings increased 32%. The story is similar in Miami,
where condo prices fell 3%, sales dropped 9% and new listings rose
27%.
Florida’s market for single-family homes is faring better. Take
Miami as an example: The median sale price of single-family homes
increased by double digits from a year earlier in January, sales
rose 9% and new listings increased 13%.
Florida Redfin agents say climbing costs are making condo
ownership unattractive
Redfin agents report that Florida’s condo sales are slow because
the cost of buying a condo has shot up, and listings are
skyrocketing because the cost of owning a condo has shot up. 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. In
addition to slowing demand, the rising cost of insurance and fees
are pushing prices down.
While condo prices are down from a year ago, they’re still much
higher than they were before the pandemic—an affordability
challenge that’s being exacerbated by rising insurance and HOA
expenses.
“Condo costs are shocking,” said Juan Castro, a Redfin Premier
agent in Orlando. “Condos that used to have a $400 monthly
maintenance fee may now have a $700 fee. It’s causing buyers to
rethink their plans.”
Florida’s HOA fees are increasing because there are new condo
regulations in place this year in the wake of the 2021 Surfside
condo collapse. The regulations require HOAs to regularly assess
the safety of condo buildings, and in many cases collect more money
for maintenance and repairs. HOA fees typically include a condo
owner’s portion of insurance costs for the exterior of a building,
while homeowners have a separate policy covering the interior of
their condo.
In some situations, it’s also more difficult to attain a condo
mortgage than a single-family home mortgage, even though condos are
often considered a more affordable option. That’s because lenders
require borrowers to have enough money to cover HOA dues, and also
take into consideration the financial health of the condo building
before writing a loan.
Home insurance costs are skyrocketing in Florida due to the
increasing intensity of hurricanes and other natural disasters,
with some insurance companies leaving the state altogether.
Homeowners’ insurance costs three times more in Florida than the
national average, making it the most expensive state in the U.S. to
insure a home.
“Condos are sitting on the market much longer than they used to,
with less interest from buyers,” said Jacksonville Redfin Premier
agent Heather Kruayai. “Sky-high HOA costs are pushing buyers out
of their monthly budget.”
To read the full report, complete with a table that includes
more data, please visit:
https://www.redfin.com/news/florida-condo-prices-dropping/
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate
company. We help people find a place to live with brokerage,
rentals, lending, title insurance, and renovations services. We run
the country's #1 real estate brokerage site. Our customers can save
thousands in fees while working with a top agent. Our home-buying
customers see homes first with on-demand tours, and our lending and
title services help them close quickly. Customers selling a home
can have our renovations crew fix it up to sell for top dollar. Our
rentals business empowers millions nationwide to find apartments
and houses for rent. Since launching in 2006, we've saved customers
more than $1.6 billion in commissions. We serve more than 100
markets across the U.S. and Canada and employ over 4,000
people.
Redfin’s subsidiaries and affiliated brands include: Bay Equity
Home Loans®, Rent.™, Apartment Guide®, Title Forward® and
WalkScore®.
For more information or to contact a local Redfin real estate
agent, visit www.redfin.com. To learn about housing market trends
and download data, visit the Redfin Data Center. To be added to
Redfin's press release distribution list, email press@redfin.com.
To view Redfin's press center, click here.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240226778672/en/
Redfin Journalist Services: Isabelle Novak, 414-861-5861
press@redfin.com
Redfin (NASDAQ:RDFN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Redfin (NASDAQ:RDFN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024